Why you need to shop your car insurance every 3 years!

Car insurance for BMW, Mercedes, Infinity, Porsche
Insurance for higher end cars

Why you need to shop your car insurance every 3 years!

There are 9 factors are used by ALL insurance companies to rate your auto insurance but some insurance companies weigh each factor differently! Some insurance companies may use credit as their heavier determination factor, some may use age more weighted, some claims and yet some your zip code! And even us insurance agents couldn’t tell you which uses which, as some companies have 92 “tiers” in their algorithm!

We plug in your date-of-birth it goes into one algorithm factor, # of claims into another, credit into another…it keeps going until all factors are submitted. Which is why you should shop your auto insurance every 3 years or so – your factors are changing!!!

Zip Code – where you live is one of the factors insurance companies use.

Home Owner or renter? – this is another factor that matters for auto insurance

Credit – what is your credit score? They actually don’t pull your credit report but do get your score for an insurance factor.

MVR – what shows up on your motor vehicle report? Tickets? Accidents?

Driver’s in Household – who else has a licensed and drives in your home? A child, newly licensed? With tickets or accidents? have their own car & insurance?

Claims – how many windshield claims have you put in the last 3 years? Other claims, like towing claims or accidents?

Age – how old are you? Young drivers (under 23) do pay the most for auto insurance.

Kind of vehicle you drive – do you own a top-of-the-line Mercedes Benz? You’ll be paying more than the Honda Accord driver. It just costs more to fix that vehicle and it probably has a much higher than normal theft occurrence.

How your vehicle is used – Do you drive around making sales calls all day? You’ll be rated as business use, since you drive a lot making multiple stops, maybe a realtor going on listing and driving back and forth to the office. The lowest rating for car insurance is pleasure use (like a retiree), then back-and-forth to work (5 miles or less 1 way) and then the prior mentioned business use


Authored by Tom Larsen, licensed insurance broker

One thought on “Why you need to shop your car insurance every 3 years!

  1. While car insurance rates are determined by a wide range of factors, there are also things that you can do to save money. I always suggest doing an annual rate check. That means, getting quotes from other companies annually. However, make sure you are comparing apples to apples.