What is a rating factor for car insurance?

Rating factors play a vital role in the calculation of auto insurance premiums by insurance companies. These factors assess an individual's risk level. Insurance companies adjust and customize your auto insurance policy price using various rating factors. Your vehicle type, driving habits, and even the location where you park your car affect how much you pay for auto insurance.

Factors insurers might use can include:

a). Age;

b). Marital status;

c). Gender;

d). Occupation;

e). Credit score;

f). Driving history (including convictions)

g). The main location the car can be used.

You could also adjust other things, like excess (deductible). You get lower insurance premiums when an excess goes up because when this happens, you promise the insurer that you take more of the costs if you make a claim.