Reader’s Question:

Where do automotive insurance companies here in Delaware base their computation of premiums? Are there ways to reduce my premiums?

William

Greater Newark, DE

When applying for an auto insurance policy, each driver is classified into different categories. Such driver categories include gender, age, marital status, address, type of place where the vehicle will be garaged, make and model of the vehicle, mileage, driving record, and previous insurance coverage.

Statistics show that trends in accident incidence and/or traffic violation rate are directly affected by the said categories. For example, drivers with poor driving records are expected to be involved in more violations and accidents, therefore they are priced higher rates when they apply for auto insurance.

The household (its members) is also considered as one of the categories. Auto insurance companies need to know who will be frequently driving the vehicle, other than the owner of it. If there are a couple of drivers in the household, the auto insurance company would either charge a high premium or cancel the insurance policy application.

If you want to get a low premium rate, you may ask your auto insurance agent there in Delaware for their current discount promotions. Auto insurance companies give out different discount promotions to attract more clients and to convince them to be safer. Some of the promotional discounts include multiple vehicle discounts, high grade point average discounts, and passive driver discounts (for those with auto seat belts and air bags).

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