Have you ever compared your car insurance rate with a friend or family member and found it wildly different—even if you both use the same insurance company? It's not that your carrier likes one of you better than the other. In fact, the way rates are determined is based on many different factors—some obvious, some you might not expect:
ñ Accident History and Driving Record-- Okay, this one's a given. If you've had many accidents in the past, you're likely to have more in the future, and your insurance rates will be accordingly higher to make up for the risk. The same logic applies if you have a slew of speeding tickets or other traffic violations on your record—higher risk, higher price.
ñ Mileage and Vehicle Usage-- This factor boils down to simple probability: the more you drive, the more likely you are to be in an accident.
ñ Vehicle Make and Model-- This factor tends to surprise a lot of people, but it is an important part of your insurance rate. Some cars are just safer than others, while some tend to crumple if you look at them sideways—which affects risk, and in turn, rates.
ñ Demographics-- Demographic information is a very good predictor of who are the most—and least—safe drivers out there.
ñ Insurance Score-- You probably knew you had a credit score, and that all-important number helps us calculate your insurance score. Believe it or not, there's a strong relationship between how you manage your credit and your likelihood of loss in a car accident, which is why we take it into account when calculating your rates.
We hope this helps shed some light on how auto insurance rates are calculated, but if you're still confused, give us a call. We'll not only help you find a great Erie Insurance rate, we'll also help explain it—and how you can lower your costs.
Being sued is not fun, but it’s often an unavoidable part of doing business. Rightly or wrongly, you can be sued for everything from a slip and fall on your floor to a customer choking on a fish bone. The most difficult thing about all of these liabilities is their unpredictability. You never know when a tableside flambé will go wrong, or when a fly will land in someone’s soup. So don’t wait until trouble comes to you: take steps to protect your business now.
Liability insurance is the simplest way to protect your business from lawsuits. ERIE’s Ultrapack business policy package will protect you from most forms of liability litigation, including bodily injury and property damage, personal and advertising liability and more. You can even purchase additional liability insurance, covering you for $1 million or more in damages.
Don’t let an unexpected situation bring your business to its knees. Get ready for the unexpected. For more information about how to protect your business from liability, call us.