How Car Insurance Rates are Determined

Car insurance rates are based on many different factors like your age, gender, and where you live. Car insurance companies use car insurance group lists to compare your driving record and credit history.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jun 29, 2020

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Here's what you need to know...

  • Your car insurance rates are based on many different factors
  • Where you live will impact your premiums
  • Your age and other demographic information will change what you pay for insurance

A car insurance groups list could be interpreted differently depending on whom you ask. In insurance circles, an insurance group list refers to categories that help them determine risk factors and your insurance rate.

Car insurance companies use these lists or tables to compare to your driving record and credit history. You can receive a list of car insurance quotes today by simply entering your ZIP code here!

Some of those risk factors include where you live. This is the reason your zip code is so important to car insurance comparison sites. This is the first indication of what your driving habits are.

If you live in the “DMV” beltway, that is DC, Maryland, and Virginia, you will encounter congested traffic situations which put you at an increased risk of having an accident.

What are car insurance group models?


In order to remain profitable, car insurance providers have to closely analyze statistics, track trends and pay attention to studies. This helps them to adjust the rates and types of coverage that they offer to each individual group of motorists.

By comparing the results of national studies to their car insurance groups lists, they can make changes accordingly.

This guide may even be referred to as an insurance table as well. Three considerations to think about are the group the car is in, standing expenses, and how much it costs to keep it running.

The analyzer rates contributing factors and scores the impact between one and 20. The higher the risk number, the higher the chance of it resulting in higher premiums.

There are ways to offset those differences if your new car purchase is what you really want.

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How are car insurance groups lists used?

Insurance agents might also use car insurance group lists to market to a particular group of drivers. For example, a car insurance groups list might be able to show an insurance broker that there is an abundance of male drivers between the ages of 18 to 25 in their local area.

They can use targeted advertising to appeal to these drivers, thus increasing the likelihood of making more sales.

Car insurance group savings are something that could be interpreted in the following two ways:

  • One of the benefits of working for an employer is the distribution of risk among numerous people. If your employer happens to insure your personal car because you use it for business, you may be benefiting from the group savings
  • If you belong to a car club, car insurance group savings may mean something different to you. Many antique and classic car owners are part of a club of this type. This makes them eligible for a 10 percent discount on their insurance

What are other types of car insurance groups?


One other type of car insurance group lists is commercial business owners. These groups have to be concerned about fleets of vehicles.

As a group of vehicles, most insurance companies offer a discount just for having to write so many autos under one policy or several policies.

Commercial transportation companies have additional liability risks to consider.

This risk is reflected in the premiums. Insuring 100 school buses for a city is a huge responsibility, since the more you have to oversee the more likely, at least one will occur in a given period.

Limo fleets is a group that requires specialty coverage, and may even receive a discount.

What type of information do car insurance groups lists contain?

Car insurance groups lists contain both detailed and general information. Each group is categorized on a scale that goes from one to 50.

This means that the higher the number, the more expensive and risky it will be for the insurance provider to extend coverage.

Some car insurance groups lists will cover virtually every demographic while others will be far less extensive.

When these car insurance groups lists are plugged into a computer system, they are used to form the algorithm that is used to give information on rates.

Since different car insurance providers use different lists, auto insurance quotes can vary from company to company.

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Can you use car insurance groups lists to estimate your car insurance rates?


Since car insurance groups lists are heavily used in the auto insurance industry, getting access to them would be advantageous.

On the other hand, there is no real indication that consumers would be able to accurately estimate their quotes if they had this data.

You can see which drivers regularly pay more or less for coverage, but you probably wouldn’t be able to determine the exact amount.

With a car insurance groups list, it would be easier for drivers to lower their insurance risk. You might learn what type of vehicle safety equipment will get you discounts on auto coverage and you would also see what drivers in other parts of the country pay.

Who might be interested in a car insurance groups list?

Car insurance group lists may be a good resource for statistical purposes. Whether you interpret the question in either of the ways mentioned, it is informative. Statistics such as these help the following:

  • Insurance companies
  • Transportations businesses
  • Metropolitan cities

This type of information helps to plan for future development in the community.

People who want to save on monthly insurance payments may definitely be interested in knowing how companies determine rates. With this information, you can meet the responsibility with a plan.

Are online car insurance groups listing hard to find?


Unfortunately, car insurance group lists for America are difficult to find online. When you try to pull up the information UK websites come up. This may lead one to believe car insurance groups lists are more widely used in the UK.

It is possible Americans refer to model groups as tables for determining insurance risk.

Although the Department of Transportation does not regulate the car insurance industry, auto insurers have to take the information released by federal agencies into account when updating their car insurance groups lists.

If a particular highway suddenly becomes unsafe because of construction, the drivers that live in that local area might have their insurance risks elevated.

In reality, car insurance groups lists are updated continuously. While the ratings might not change substantially, every time the scale is updated, rates can be impacted.

Some car insurance providers might update their car insurance groups lists every day, week, or month, while smaller companies might only do it on a quarterly basis.

The statistical data used to update car insurance groups lists comes from a number of different sources, which means that having the most up-to-date information is a challenge for all auto insurance providers.

Car insurance quotes are available today and all you need is your ZIP code in the search tool below!

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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