How Your WY Auto Insurance Rate is Calculated

When WY auto insurance companies are setting rates for customers, a number of factors come into play. Rates vary, depending on the provider, because each company determines independently how much risk it is prepared to assume on behalf of a policyholder. A higher level of risk translates into higher rates for coverage.

How does an insurance provider decide how much risk an applicant presents? One way is to examine the individual’s driving record. A person who has been involved in one or more accidents is more likely to be involved in similar events going forward, and he or she will pay more for coverage for several years as a result. Drivers who have been able to maintain a clean driving record for several years will be able to qualify for lower rates on their coverage.

Location is another factor that WY auto insurance providers consider when setting rates. Companies collect data about where car thefts and reports of vandalism are most likely to occur. A policyholder who lives in one of these areas will pay more for his or her coverage.

Annual mileage is another important factor that insurers look at when setting rates. People who spent more time behind the wheel of their vehicles are more likely to make claims against their insurance policy. This higher level of risk translates to higher coverage rates. People who choose to use public transportation to get to and from work can do their part for the environment and save on the cost of their WY auto insurance coverage, too.