What is Auto Insurance Groups?

By fashun on September 4th, 2007

Reader question:

What are auto insurance groups?

Andy

Good question.

In auto insurance, the car insurance companies give you a certain premium price based on who you are, what you do, what you drive. Having a high performance car can get you a raise, as can having a new car, or bad credit, and especially a bad driving record. That last one and the first one might also be big contributor to you having a hard time getting a car insurance policy taken out at all. There are many factors that go into the final decision.

These have a lot to do with the auto insurance group that you are placed in. There are three basic auto insurance groups. They are:

high risk
average risk
preferred risk

The first one is of people who have several speeding tickets, a high performance car, are male and under the age of twenty five and so on. The second one includes people who might have a ticket a year ago, a new car, and mediocre credit. The last group is of the best drivers with the best car insurance qualities. The group that you fall into determines who will insure you and how much it will cost.