How to get personalized Insurance rates

Progressive-Snapshot Personalized Insurance Rates
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How to get personalized Insurance rates

As you may know, Insurance prices are calculated using a variety of “rating factors“.

Insurance companies have begun to look at a new way to better personalize Insurance rates, based on drivers ability to drive safe, rather than using the other rating factors. These programs reward the safe drivers, and help these drivers save additional money on their car Insurance premiums.

These rating factors help Insurance companies to determine the potential risk, and calculate the Insurance prices based on the risk. This price is your personalized insurance rates.

Rating factors that are used include location, driver age, gender and marital status, driving history and experience, and the type of vehicle and coverages desired.

Thus, there isn’t a one size fits all policy. Despite whatever Tiktok might tell you… sorry, cheap shot… Tiktok is the black hole where my soul resides.

The natural question is, how do these rating factors impact the premium, or more to the point, why?

It is all about statistics!

Personalized Insurance Rates: What that Looks Like

STATISTICS STORY – Personalized Insurance Rates

Welcome Center Free Auto Insurance Quote

This is Jim! He is 23 years old, single, ready to mingle and just bought his first car! Yay Jim! This stylish Floridian lives in Miami and is ready to cruise South Beach with his sweet new wheels. He has one minor violation on his record and with his fresh new beard he is ready to roll!

Based on the information the Jim has given us, you’ll notice multiple factors that will give us his personalized insurance rates.

  1. He – Males typically pay more for insurance than their female counterparts. Why?! Statistically speaking young males get into more accidents than females. Poor Jim…
  2. Jim is young! Young drivers are notoriously poor drivers and the stats don’t lie. Once Jimbo crosses 25 those rates will dramatically improve.
  3. Jimmy-Boy is single as a pringle! Insurance companies like stability, marriage says stability(whether it seems fair or not). Married males tend to get in less accidents, and those accidents usually are far less costly in property damage.
  4. Florida-Boy. Hey who doesn’t like the Sun?! But, it’ll cost ya! Living in a high density state like Florida and a city as populated as Miami will raise those premiums.
  5. Violations! Jim has been convicted of no style violations, but unfortunately he has a moving violation… one that requires him to carry an FR-44. Violations can impact your rate for 3 to 5 years! Worry not, that isn’t forever.

All of these factors combine to find Jim his personalized insurance rate!

Top Average Monthly Auto Rates in Florida for Jim- Male, Young, Single, in Miami with a Violation on Record

Car Insurance CompanyAverage Monthly Payment
Dairyland$187
Bristol West$215
21st Century$223
Nationwide$291
Jim isn’t real.. sorry ladies

Personalized Insurance Rates: What is a “Drive Program?”

Several insurance companies have started to use driving programs to get personalized insurance rates, all programs have different names.

Progressive’s drive program is called “Snap Shot”. Travelers uses a similar program called, “Intelli Drive”, and National General uses a program called “Dynamic Drive.”

These programs offer a certain percentage off the start of a policy (usually 10% off the premium), and after your driving is monitored, you could earn up to 30% off of the renewal premium.

Personalized Insurance Rates: What do the driving programs monitor?

Progressive-Snapshot Personalized Insurance Rates

The drive programs such as Snapshot, and Intelli drive generally offer an App, or a Plug In device which monitors driving habits. The things that they look for are hard breaking, fast acceleration, and the times the vehicle is most driven. Drivers can view their driving status through out the period they are monitored to see how they are being scored.

Once the program gathers enough data to accurately depict the drivers habits, the app/plug in will no longer be needed and a renewal offer will be generated.

At your renewal, you will be sent a new premium based on your driving. If you did well you could earn 30% off of the total premium, if you did not do so well, your premium could end up increasing.

Last Updated on February 18, 2022 by Veronica Moss

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