Peek Beneath Your Car Insurance Rates
Why does your auto insurance company charge you a certain rate for coverage? The answer can be complicated, according to John Bratton, professor of insurance and risk management at the University of Central Arkansas in Conway.
In some cases, you may pay more because of something you did, such as getting caught speeding or purchasing the wrong type of vehicle. In other cases, your costs may be higher because of things beyond your control, such as your age or gender.
In another of Bankrate's interviews about the basics of personal finance, Bratton offers a glimpse at the ingredients that make up the special sauce that is your car insurance rate.
What are some of the factors that affect auto insurance rates?
Auto insurance rates are based upon factors such as:
Driver age, which is a proxy for experience. Statistics indicate that inexperienced drivers are much more likely to be involved in crashes. Sex. Young male drivers as a group


