When a person applies for Colorado car insurance coverage, the underwriting process and the rating determines whether the insurer is willing to extend coverage and how much the premiums will be.
During the underwriting process, the company will consider the level of risk that a driver presents, based on his or her driving record. The company will consider the last three-five years of recent driving history when doing so.
The insurance company considers an applicant’s age and gender when determining how to rate him or her for coverage purposes. Where an applicant lives is factored in, since living in an area with a high level of car thefts means a higher level of risk for insurance purposes. Annual mileage is difficult for car insurance buyer to control, but spending a lot of time on the road may mean paying higher rates.
The make and model of the car being insured is considered as as part of the rating process. Driving a sports car or a vehicle that is not outfitted with safety devices, such as anti-lock brakes, means a higher rating and higher prices.
Marital status matters to car insurance companies, since they know that married people are less likely to make claims. Employment history also plays a part in rating, since long-term employees are also less likely to make claims.