What factors are weighed when determining what New Hampshire auto insurance rate a buyer will pay for his or her coverage? Each company licensed to sell policies in the state uses its own formula to set rates, but it’s a safe bet that an applicant’s driving record is one of the main criteria for insurers.
An insurance provider will offer preferred rates to drivers who have been licensed for several years and who have maintained a clean driving record. Past experiences are used as a way to predict future behaviors. A car insurance applicant who has driving history which includes accidents and/or moving violations will be paying higher rates for his or her coverage.
Another factor that NH auto insurance companies consider when setting rates is location. Where the vehicle will be garaged is a consideration, and insurance providers keep track of areas where car thefts are most likely to occur, and customers who live there pay higher rates for their coverage.
Annual mileage is another factor that insurance companies look at when setting rates. A driver who limits his or her time behind the wheel is less likely to be involved in a car accident (and make a claim against his or her policy). This lower level of risk to the insurance provider is rewarded in the form of lower rates for the consumer.