When Iowa car insurance companies are setting rates, they consider a number of factors. While each company operating in the state may consider similar ones, the specific formula used to determine the level of risk that a driver presents varies from company to company. For this reason, pricing for the same type and level of coverage can vary significantly between providers licensed to sell policies in the state.
When a person applies for car insurance coverage in Iowa, the insurance company will ask how long he or she has been licensed and whether the individual’s driving record includes any accidents and/or moving violations. The applicant’s age is a factor when determining how much to charge for coverage. Teens and young adults pay some of the highest rates for their coverage, since they are statistically more likely to be involved in a car accident. Once a driver reaches his or her mid-twenties, rates should start to come down.
Marital status also matters when Iowa car insurance companies are setting rates. Policyholders who are married are considered to be more responsible than their single counterparts. As a result, they can qualify for lower rates on their coverage.
The car insurance company will also ask about the make and model of the vehicle to be insured. They know that certain types of vehicles are more likely to be targeted by thieves, and their owners are charged more for coverage. A driver who owns a sports car can expect to pay higher rates for coverage as well.