Rhode Island car insurance companies use a number of factors to determine how much to charge their customers for coverage. They take the applicant’s age, address and driving record into account as part of the underwriting process when determining how much to charge.
A person who is under the age of 25 will be charged a higher rate for their car insurance coverage than more mature adults. This young age group is more likely to be involved in accidents, and the insurer takes this into account when setting rates.
Where a Rhode Island car insurance customer lives plays a role in rates charged as well. If the customer happens to live in an area where numerous thefts or acts of vandalism have occurred, he or she will be charged higher rates for car insurance coverage. Living in a densely populated area where there are numerous cars also means paying more for car insurance coverage. In contrast, car insurance customers who live in rural areas where there is less likelihood of an accident occurring would pay lower rates.
For anyone who wants to get the best possible pricing for car insurance, having a clean driving record is a must. Insurance companies reward customers who are accident-free and who don’t have a record of moving violations with lower rates.