Insurance companies often use statistical calculation methods to determine how much coverage they should offer their customers and how much the premium should be. It’s not easy at all and they have to consider a long list of things.
Let’s discuss the factors that determine insurance coverage and premiums here.
Your location
Where do you live? You don’t have to tell me, but you have to tell this to the car insurance company. Your location is among the crucial factors that determine the coverage and premiums of the policy.
If you live in a small town like Taos, New Mexico or in Santa Barbara, California, the the odds of getting into an accident are low. Big cities like New York, on the other hand, are full of traffic and accidents are very common.