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With access to online tools and the help of an agent, comparing auto insurance policies is easier than ever. But how do companies arrive at specific figures, and why do they need so much information to calculate premiums? Below is a brief explanation of the process, along with some tips for choosing the right policy for you.

How Do Auto Insurance Quotes Work?

What an Agent Does

Once you give your agent your driver’s license number and other personal information, vehicle identification details, background, and names of covered drivers, they’ll start comparing policies to find the best options. If you’re working with an independent agent, they’ll request quotes from several different carriers, shopping around to collect a few policies that provide the coverage you need at the best rates possible.

How Auto Insurance Companies Calculate Premiumsauto insurance

Every insurer bases their prices on how likely they think you are to file a claim. To calculate their risk, they crunch numbers from a wide range of data, including your age, driving history, type of car, and local crime rates. Even factors like your credit score and whether you own your home can impact your auto insurance premiums.

The Lowest Rates Aren’t Always the Best

Price is always an important consideration when comparing car insurance policies, but it shouldn’t be the deciding factor. Some policies with slightly higher costs may provide additional protection that can save you a lot of money if you have to file a claim. For instance, if your auto insurance offers the bare minimum liability coverage, you could wind up paying out of pocket if you cause an accident that seriously injures someone else.

 

From their offices in Kalispell, The Insurance Exchange offers affordable, high-quality coverage options to drivers throughout Northwest Montana. Their friendly, experienced agents will take the time to understand your unique situation and find a policy to suit your needs. Call (406) 756-2500 to request an auto insurance quote. For more information on the claims process, visit them online.

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