When AK auto insurance companies are setting rates for coverage, they consider a number of factors. Rates vary, even for the same type and level of protection, between providers. Rates for coverage depend on the level of risk that an applicant presents for car insurance purposes and companies vary in the level of risk they are prepared to assume when extending coverage.
When a person applies for AK auto insurance, the company will consider his or her driving record. A history that includes moving violations or accidents will put a driver in a higher risk designation than if the person has a clean record, and that driver will be charged higher rates. If the level of risk is high enough, the insurance company may choose not to provide coverage to a particular driver.
The make and model of the vehicle also determines how much a person will be charged for coverage. Drivers who choose sports cars pay higher rates because these types of vehicles are meant to be driven fast and are more likely to be involved in a motor vehicle accident. Some vehicles cost more to insure because of their high repair costs; making a call to an insurance company can help a consumer determine how much insuring a particular vehicle will cost.
Location is another important part of the equation when setting AK auto insurance rates. Insurance providers track zip codes where policyholders report losses and charge higher rates in places where numerous car thefts or acts of vandalism have been reported.