The number of consumers are concerned about privacy issues, which makes the question of how to get an auto insurance quote without providing any personal information a very timely one. To provide an accurate quote, the driver must share at least some personal information with the insurance provider.
The information is used to determine what which risk category the applicant should be placed in for coverage purposes. If a driver is looking for auto insurance online, the personal information would be gathered over a secure server and not shared outside of the company.
How Auto Insurance Companies Set Rates
When an auto insurance company is setting rates, it considers a number of factors. There is no specific “going rate” for coverage for drivers in a particular state or age group. Each person applying for coverage is evaluated according to a formula, and different companies may give more or less weight to specific ones. Some factors which insurance companies look at when setting rates include:
- Vehicle make and model
- Driver age
- How long driver has been licensed
- Where the driver lives
- How many accidents the driver has been involved in over the past three-five years
Since each applicant’s profile and driving history is different, pricing for insurance will vary. Coverage costs will also be different depending on the company. Each one determines independently how much risk is prepared to assume on behalf of the policyholder and what it will charge for coverage.
Auto Insurance Risk Categories for Drivers
Insured drivers are grouped into one of three categories when they apply for coverage: Standard, Non-standard or Preferred.
Most people on the road are placed in the standard category for auto insurance purposes. They represent an average level of risk to the insurer, which means they pay their premiums on time and don’t have any major accidents or multiple moving violations on their record.
Drivers placed in the nonstandard category are considered high risk for insurance purposes. Not all insurance companies will provide them with coverage, and the ones who are prepared to take on this level of risk usually charge higher rates than the ones standard drivers are paying.
Someone may be considered high risk for auto insurance purposes if you’re she has been in charge with a DUI (Driving Under the Influence) or a DWI (Driving While Impaired) offense. A driver may also be placed in the high risk category here she has been involved in more than one at fault accident, has had his or her policy is canceled for nonpayment, or has had a lapse in coverage.
Preferred auto insurance customers by people who have been licensed for a number of years and have maintained clean driving records throughout the time. They have never had a lapse in coverage, or have failed to pay their premiums on time. Insurers reward these stellar customers with low premium rates.
When auto insurance companies ask personal questions, they are trying to gather information to evaluate the level of risk that an applicant resents for coverage purposes. Without this information, they would not be able to provide accurate pricing information.