An In Depth Look At Auto Insurance Tiers

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Car insurance companies use many different factors to determine your risks and auto insurance policy costs. One important factor in this equation is tiers, or more specifically the number of tiers that each specific car insurance company has. The number of tiers can vary from none all the way up to fourteen, and the car insurance company you choose will have costs that reflect the number of tiers they use.
The most commonly used number of tiers is three, and auto insurance providers who use these companies will be rated according to the three classifications: substandard, standard, or preferred. Preferred will be a driver who has a spotless driving and credit record, with a low risk make, model, and color of car. Standard covers most consumers, and reflects a driver whose driving record and credit report reflect some problems, but they are not below the average for consumers. Drivers who are placed in this tier will pay a higher rate, but it will still be lower than the last classification, substandard.
Drivers who use an insurance company that utilizes three tiers, and who are placed in the substandard tiers, will pay significantly more for car insurance than those in the standard tier, and a lot more money than consumers who are placed in the preferred tier. The higher number of tiers that auto insurance company uses, the lower your car insurance costs will be. A company with no tiers is going to charge the same rates to all the drivers who have auto insurance policies through the company, and these are rare. Two tiers means that the auto insurer has one tier for low risk drivers and one tier for high risk drivers. An auto insurance company with fourteen tiers will charge less than one with seven tiers, because the specific risks can be calculated more closely, and the additional tiers allow the company to break down the risks better, giving you lower car insurance costs.
Since three tiers are the most common number used by vehicle insurance companies, we can break these tiers down to help lower car insurance costs. You can be placed in the preferred tier if you meet several factors.
Same car insurance provider has been used continuously for at least three years No claims or accidents in the last three to five years, depending on the specific car insurance company Low mileage driving Full coverage insurance with a limit on liability that is more than the law requires No points on driving record A standard driver will meet these requirements, and will give you lower car insurance costs. One or two claims or accidents in the past five years Minor car insurance coverage lapses Normal and usual mileage driven A small number of points on your driving record, such as one ticket If you are classified as a substandard driver, you will pay a much larger amount more for your car insurance. This tier should be avoided at all costs, and this can be done by driving cautiously and carefully, obeying traffic laws and signs, avoiding accidents when possible, and keeping car insurance coverage through the same company for an extended time.

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