Auto insurance companies use many different criteria when evaluating an insurance application. Each car insurance company has guidelines regarding which groups of drivers they want to accept and how much they will charge those groups they consider a greater risk. The guidelines are different for each company, meaning that two companies comparing the same driver can arrive at vastly different conclusions. Which is why shopping out your auto insurance each year is a good idea to make sure you are getting the lowest cost for the coverage’s you are buying.

Insurance company look at your motor vehicle records to see how many accidents or tickets you may have. Many insurance companies also use an insurance history report to see if the driver has made any car insurance claims, and how much money was paid. Accidents and violations can normally only affect the rates you receive for three years.