Did you know that auto insurance rates differ for different people in different situations? In this article, I am going to explain how this is possible. Read it, and learn more about auto insurance. So in what ways does auto insurance differ for different people? 1. Policy Examples of insurance coverage include liability insurance, comprehensive coverage, collision coverage, uninsured/underinsured motorist protection, and personal injury protection. Each of these policies has its price. You should choose the plan which suits you most, while also considering your financial ability. 2. Company Auto insurance provision is a business. Obviously, different companies will have different charges for services rendered. In the same way, different car insurance companies will charge different prices for similar services. These charges depend on the company’s age, size, reach, financial capacity, goals, standards, among other factors. 3. State There are 50 states in the US. Each of the US states has its laws and regulations pertaining auto insurance. For instance, Indiana drivers pay half what Louisiana drivers pay for equal coverage. Insurance takes these state factors, then use a complicated formula to calculate averages to come up with a price that is the baseline for all customers in the state. Each state has its minimum requirements that drivers must adhere to for the basic liability coverage. Basic coverage is meant to shield them from potential financial loss brought about by property damage, bodily injury, or uninsured/underinsured drivers. Blue (liberal) states often have higher rates than Red (conservative) states. 4. Factors pertaining to an Individual Different people will pay different auto insurance rates. The insurance company will look at factors like driving record, the age of the driver, make and model of the vehicle, whether it is garaged or not, driving location, the driver’s credit rating, and claims history to decide what insurance premium they will charge a particular client. Cost of insurance varies with drivers depending on risk factors. Different companies rate risky drivers using different criteria. 5. Credit Rating Credit rating measures your creditworthiness – your likelihood you will repay a loan or credit card debt. Car insurance companies use your credit worthiness to predict the odds that you will file a claim. If you have a credit rating lower than their standard, they will charge you a higher insurance premium, even in the event of an accident. So mind those credit card debts, and pay that mortgage and the bank loan. They have a greater reach than you might think. Last Word I hope this article has taught you something new. That you have read it tells me that you are curious about auto insurance. Keep reading, and learn more. Sometimes such knowledge can be the difference between a person who retains his money and one who loses it. Article about Safeway auto insurance quotes are here.