By Catherine Powell
|Image courtesy picpedia|
If you’ve ever compared your auto insurance rate to that of a friend, you may come to find that even though you’re both the same age and use the same insurer, what you pay could be quite different from what your friend pays. What most consumers don’t realize is that insurance rates aren’t the same for everyone. That’s because insurance is based on risk. Insurance companies calculate risk by using a number of factors, including how old you are, where you live, what you drive, how many tickets you’ve had and where you park your car for the night, just to name a few. If you’ve ever wondered how insurance rates are calculated, today’s blog should help take the mystery out of the process.