Soon, this will mean a radical revision of the way auto insurance companies calculate rates.
Houston, Texas (PRWEB) March 29, 2013
The auto insurance industry is an incredibly competitive place, and it is only getting more and more competitive. While this is a good thing for consumers, insurance companies are being drawn more and more to change their rates to attract more policyholders. Soon, this will mean a radical revision of the way auto insurance companies calculate rates. Rate Digest shows in their blog post how this will affect the consumer. This change will make getting cheap auto insurance a reality for many- but it will also mean a change in how they are seen by auto insurance companies.
Currently, Rate Digest explains, insurance companies were bound by state law to calculate rates by using certain basic categories, including the age of the driver, the number of years the driver has been on the road, and so on. These are basic, easy to analyze demographics that everyone has and can be easily calculated to make an assessment of risk. However, they aren’t a very good indicator of a driver’s safety.
This drive to make an ever-more-accurate assessment of risk is the driving force behind the auto industry’s changes in insurance rates. Historical information will still be used- a driver with an excellent driving record will still be rewarded for their safety, and the reverse will also be true- but the so-called Pay as You Go policy will invalidate traditional policies. Insurance companies who issue traditional, cookie-cutter policies will be left behind, and those who work for a more dynamic and changeable solution to stagnant auto insurance rates will attract the policyholders they desire.
About Rate Digest:
Rate Digest is the provider of a unique auto insurance comparison tool, that allows people access to dozens of top-of-the-line insurance providers with rock bottom premiums. Visit http://www.ratedigest.com/ for more.