How are Auto Insurance Rates Determined? Rates are determined based on the likelihood that an insurance company will pay a claim on behalf of the policyholder. There are a number of factors that determine whether you are a higher, lower, or average risk. Unitrin Direct considers these factors in determining you rates:

Driver Age: The age of the driver is a key factor in determining the likelihood of having an accident. Certain drivers have a higher propensity for accidents than other drivers, so these drivers typically pay higher rates.

Vehicle Type: Some vehicles are more costly to repair or replace, or damage more easily. Also, some vehicle makes and models are stolen more frequently than others and can cause more damage when they are in an accident. Typically, these vehicles cost more to insure.

Coverages: The types, limits, and deductibles on the policy factor in determining rates. Higher coverage limits and lower coverage deductibles contribute to higher rates.

Driver Residence: Different areas have different rates of theft and vandalism, which affect insurance rates. In addition, insurance rates are higher in larger cities where more accidents are likely to occur.

Personal Driving Record: Your years of driving experience, and number of past accidents and tickets also factor in determining your rates. A lack of accidents and tickets can count in your favor. .


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