Factors of Auto Insurance in Nevada

October 19, 2017 · Posted in General 
auto insurance
There are two factors that determines what you will pay for auto insurance. These factors analyze a buyer’s characteristics and determine the risk that consumer is likely to present. 

Underwriting :

– Auto Insurance companies underwrite for assessment of risk associated with an applicant, and place applicant in a group with other similar risks, and decide if the auto insurance company will accept the application.

– Rating is the determination of premium based on the driver and the vehicle characteristics.

When you apply for auto insurance, you will be asked several questions which assess the expected cost of insuring you.

Insurers also want to know your driving history and your personal characteristics in order to group you with other similar drivers.

Insurers also consider lifestyle and personal characteristics in the underwriting process. These include employment history, marital status etc.

Insurers’ statistics have shown that the married tend to have lesser claim levels than the unmarried. A rate for each group is set based on the historical claims paid by the insurer for the people in that group. The higher the losses from a group, the higher the rate for that group.

Finally, Nevada auto insurance companies now place more importance on the use of loss reports. Information relating to an individual’s auto insurance claims history for the past five years with all the individulal’s auto insurance company is gathered and compiled together by two different organizations, the Comprehensive Loss Underwriting Exchange, usually known within the auto insurance industry as “CLUE,” and the Automated Property Loss Underwriting System, known as “A-PLUS.

The reports provided by these two organizations contain consumer claim information provided by the auto insurance companies. Thus, when an individual shops for auto insurance, every company that person approaches has access to his or her entire loss history for the past five years.

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