Pennsylvania Auto Insurance Coverage and Rates

When Pennsylvania auto insurance companies are setting rates for their customers, they consider several factors:

  • Make and model of the vehicle
  • Location where the car is garaged
  • Whether it has any safety features, such as anti-lock brakes and automatic seat belts
  • Annual mileage
  • Applicant’s driving history

The car insurance company uses this information as part of its underwriting process. To set rates for a particular driver, the company must assess the level of risk that he or she presents for car insurance purposes. Drivers who are determined to be high risk for car insurance purposes pay more for their coverage than low-risk ones.

High Risk Drivers

A person may be classified as a high-risk driver for Pennsylvania auto insurance purposes if he or she is young and/or recently licensed. Car insurance providers know that people who fit this profile are more likely to be involved in accidents and to be involved in claims made against their auto insurance policy and for that reason they pay more for their coverage. A person who has been involved in one or more accidents is also more likely to be charged higher rates for coverage. The insurance company looks at past behavior as a way to predict future events.

To avoid being placed in a high-risk category, a driver should try to maintain a clean record. Taking a good driver’s education or a defensive driving course will help an individual stay accident-free and qualify for better rates on his or her Pennsylvania auto insurance coverage.