When you apply for an insurance policy, you will be asked a number of questions. For example, we will ask you your name, age, gender, address, etc. The agent will want to know about your driving record and what type of car is to be insured. And since a car accident can affect you financially, we want to make sure you will be covered to the best of what you can afford.
Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than young drivers with traffic tickets and accidents.
In addition to your age, gender and driving experience, information about the vehicle you drive and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact and someone who commutes 30 miles each way is more likely to be in an accident than someone who rides the bus to work or drives only on weekends.