Arizona Auto Insurance Companies use lots of data to determine auto insurance rates. Computers are used for this.  At time of application for insurance, risk profiles are prepared. Profiles start with information you provide to your agent. That information and other data is stored in various insurance industry data bases. The profile created is compare to historical records in the insurance company’s database. It is unlikely a person would understand the insurance rating system. However, the more a person knows about the process the more likely one can favorably effect their insurance rates.
The factors car insurance companies take into consideration include:

  • Gender
  • Age
  • Marital Status
  • The miles of driving one does each year
  • The make and year of your vehicle
  • Your driving record
  • Your credit score

How Gender, Age and Marital Status Effect You?

For each new application, the car insurance company evaluates each drivers “risk”. Each Arizona Auto insurance company used a vast amount of data to do this. The data base covers almost any risk an Arizona auto insurance company could insure. Data shows that drivers between the ages of 16 and 24 have more accidents. Individuals between the ages of 50 to 64 have the fewest number of accidents. When people reach age of 65, they begin having more accidents again. By age of 75, Arizona auto insurance company data indicates people will have more accidents then younger group of drivers. Gender is especially important concerning people under the age of 25.

Arizona auto insurance company data shows women have fewer accidents than men. Young men are in far more car accidents than young women. Statistics also show that this risk is partially offset by marriage. Arizona auto insurance company data shows married men ages 18 to 24 are in fewer accidents than single men.

Your Driving Record is a big factor!

Driving records are an extremely important factor in pricing car insurance. Arizona auto insurance companies know that once you have one accident, there is a higher probability that you will be in second accident. Should the second accident occur, then there is an even greater probability a third will happen. This sequence goes on and on. A person having multiple accidents or traffic citations in a short time period will have higher auto insurance rates. With to many accidents and/or citations a person may not be able to get insurance at all.  If that happens, a person will be required to enter a “high risk” insurance pool. Such high risk pools are usually formed by the state. The cost of this type of Arizona Auto insurance will be very high.

Using driving records to determine Arizona auto insurance rates makes sense. However, another key factor is Credit Score. Arizona regulates the amount of information an Arizona auto insurance company can access from your credit report. That makes where you live is a key factor. A persons credit rating has a major impact on Arizona auto insurance rates. In fact, a poor credit history may even make it nearly impossible to get car insurance. It might cause a car insurance company to decide to cancel a policy. These are some of the factors Arizona auto insurance companies use to  assess the risk a driver will have bring to the company. Higher the risk the higher the cost of Arizona auto insurance.

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