When New Hampshire auto insurance companies are deciding how much to charge for coverage, they consider a number of factors. When a person applies for coverage, the insurer uses a complicated formula to determine the level of risk that he or she presents. Customers who are considered low risk for insurance purposes are rewarded with lower rates.
To be considered a low risk for car insurance coverage purposes, a person should have at least a few years of driving experience with a clean record. An individual who has been involved in an accident or who has accumulated moving violations will be considered higher risk than someone who does not have these types of marks on his or her record. A newly-licensed driver will probably be classified as a higher risk and will pay more because of this fact.
The type of vehicle to be insured is another important factor when it comes to setting rates for coverage. A person who is looking for coverage for a sports car will be paying higher rates than an individual who drives a more conservative vehicle. Some vehicles cost more to insure because they cost more to repair or are more likely to damage other vehicles on the road. SUVs fall into the latter category.
Car insurance buyers who live in urban areas will also pay higher rates than their rural counterparts. More cars on the road means a higher risk of accidents (and claims).