How a Nevada Auto Insurance Rate is Determined

When a Nevada auto insurance company is asked to set a premium rate for a particular applicant, it considers a number of factors. Each company uses its own formula to determine the level of risk that a driver presents, and people who are determined to be riskier to insure can expect to pay higher rates than those who are determined to be less likely to make a claim against their policy.

One of the main factors that is used to set a premium rate is the applicant’s driving record. Insurance companies are able to access a person’s driving history electronically and they use this information to calculate the likelihood of a particular person being involved in an accident. Young drivers and people who have recently obtained their driver’s license will be charged higher rates than people who have been licensed for a number of years and who have clean driving records.

When auto insurance companies are setting rates for customers, they also consider the make and model of the vehicle to be insured. Some vehicles cost more to cover because they are pricier to repair following an accident. Consumers who want to find out how much a particular type of vehicle will cost to insure can find out by contacting an insurance company to ask for a quote.

Location is another factor that helps to determine what Nevada auto insurance rate a particular driver will pay for coverage. Living in an area with a history of multiple accidents means paying more for coverage.