HI auto insurance companies use specific formulas to set rates for policyholders. Each one is unique to the company involved, which means that rates can vary significantly between providers. While the details of how each company determines what to charge is confidential, an insurance company will consider how long an applicant has been licensed when setting rates. Customers who have been licensed for several years and have a higher level of driving experience are less likely to be involved in an accident and can qualify for lower rates than people who have recently obtained a license.
Mature drivers who have been licensed for a number of years can qualify for some of the lowest rates on their HI auto insurance coverage. The combination of maturity and a clean driving record makes them a relatively low risk for insurance purposes, which translates into preferred pricing. In contrast, newly-licensed and/or young drivers pay higher rates since they are more likely to make claims against their policy.
The make and model of the car being insured is another important factor when it comes to setting rates for coverage. A driver who is looking to insure a model that is costly to repair or likely to be targeted by thieves will pay higher rates for coverage. Some vehicles are more expensive to insure because of the level of damage they can inflict on other vehicles in an collision, and an SUV is an example of one that falls into this class. To find the lowest rates, a consumer should shop around for coverage.