When you apply for coverage, your Arizona auto insurance rate is determined using a specific formula. Each insurance provider decides what level of risk it is prepared to assume on behalf of its policyholders. Some companies are prepared to assume a higher level of risk and offer lower rates for the same level of protection than others.
One of the main factors that car insurance companies consider when setting rates is the applicant’s driving record. Young or newly-licensed drivers are more likely to be involved in car accidents and pay higher rates than drivers who have been licensed for several years. To demonstrate to an insurance provider that you are a good risk for care insurance purposes, it’s important to maintain a clean driving record. Taking a driver’s education or defensive driving course can help to keep rates down, since both of them teach drivers the skills they need to avoid accidents.
The make and model of the vehicle being insured is another important factor when it comes to setting an Arizona auto insurance rate. Insurance companies know that some cars are more likely to be stolen or are more expensive to repair than others, and they charge higher rates to their policyholders because of it. Other vehicles cost more to cover because they are more likely to damage the other driver’s car in an accident, and SUVs fall into this category.