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When you apply for an auto insurance policy, before the insurance company can issue the policy they must try to foresee how much risk you will be worth if the policy is written. This helps them to manage the claims experience they have, determine whether or not to issue your policy and, if they do issue your policy, decide how much to charge you for it. The process during which they assess your risk is called underwriting.

Older driversWhile underwriting your auto insurance policy for coverage, underwriters will take into account various criteria including your previous driving record. They will obtain a motor vehicle report (MVR) to see how many tickets, accidents and other driving incidents you’ve had, what the tickets have been for, and decide how much influence those actions have on your current driving habits. Some of your past behavior—like speeding—will make you a riskier candidate to insure than others. This is because your past deeds and choices imply something about your personality and habits. Someone who has been cited with several speeding tickets in the past is more likely to have an accident and has also shown a propensity to ignore the legal speeding limit. This shows that the driver might be liable to disregard other driving laws and safe driving practices, therefore making him more likely to have an accident resulting in an insurance claim.

Other qualities underwriters consider include your age, gender and marital status. It may seem like these have no effect on whether you are a good driver, and in actuality, they don’t. No random fact about you determines whether you drive well, but based on many studies and anecdotal evidence, underwriters can create assumptions about probability of whether you drive safely and conscientiously based on these aspects. For example, a married man who is in his thirties will be considered less risky a driver than a single girl who is sixteen. Why? Well, a 30-year-old of any gender will generally have more driving experience than a 16-year-old, and a married person is usual viewed as being matured and more responsible because he has people who depend on him. And while none of these assumptions are guarantees about the integrity of the driver in question, the practice of underwriting relies on both gathering evidence of actual driving history and making suppositions based on this data.

It is through this careful balance of assumption, statistical data and historical driving information that underwriters decide whether or not to issue your policy and how much to charge you for it. The only data you really have any say over in this instance is your driving record, so be sure to keep your record clean and free of citations that are avoidable if you just follow the posted laws.  

Heritage Insurance Agency

As an independent agency we can offer our clients what direct writers cannot; More Choices and Better Rates.  We combine old fashion values and service with only select companies that provide stable financial stability. Contact or call us today for a free South Carolina auto insurance quote at (888) 269-6860.
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