| As a policy holder, it most likely amazes and | | | | An example of this is if you do not wear your |
| confuses you as to what insurance companies | | | | seat belt. |
| look into when dealing with auto insurance | | | | Other safety factors that the insurance |
| estimates. Some aspects of it make sense and | | | | companies take into account when figuring out |
| then there are others that are a mystery. | | | | auto insurance estimates have to deal with your |
| For example, you might not understand why it | | | | vehicle. If you are driving a vehicle that has air |
| matters whether you have your vehicle paid off. | | | | bags or anti-lock brakes, or both, you are going |
| To the insurance company, it does. The reason | | | | to be safer in the vehicle. This will help lower your |
| companies look into so many different factors in | | | | estimate. |
| order to come up with an estimate is because | | | | They also take into consideration where you live. |
| you basically are asking them to take a risk on | | | | This is because certain neighborhoods have higher |
| your behalf and you will pay them for it. This also | | | | rates of vandalism and theft. If you are going to |
| means they have to look into all of your risk | | | | have your vehicle in this area more often, you |
| factors. | | | | are increasing your chances of having this happen |
| The first and most obvious feature at which a | | | | to your vehicle, which results in the insurance |
| company will look when coming up with auto | | | | company paying out. |
| insurance estimates is your driving record. If you | | | | Another aspect that goes into auto insurance |
| have a history of poor driving decisions, such as | | | | estimates is the make of your vehicle as well as |
| traffic violations and accidents, this is a greater | | | | the color. The color is important because police |
| risk than someone who has never had any of | | | | tend to pull over people driving certain colored |
| these things. | | | | vehicles. |
| From the insurance standpoint, it is more likely | | | | The model also plays into effect because it is |
| they will have to pay money on you because you | | | | likely that someone driving a red sports car is |
| have a history. For this, they typically will charge a | | | | going to go faster than someone driving a tan |
| higher policy estimate. Beyond this, they look into | | | | minivan. Knowing what all insurance companies |
| safety aspects that will cost them more money. | | | | look into can help you reduce your estimate. |