How are insurance rates determined?
The Missouri Department of Insurance, Financial Institutions & Professional Registration does not set insurance rates. An insurance company's rates are based upon the claims they pay, operating expenses and profit. The rates you pay as an individual driver/owner are usually based on:
- The amount of coverage purchased.
- The amount of the deductible chosen.
- Where the automobile is garaged; autos rates for farm use generally have lower rates than those rated for city use.
- How the auto is used and the number of miles driven each year.
- The type and age of the car.
- The age and sex of the insured driver.
- Credit history.
- Driving and claims record. Missouri regulations, however, prohibit insurers from charging extra for claims under your comprehensive coverage.
Insurance companies and insurance rating organizations establish rating territories generally based upon claims experience. Check with your agent or broker if you have any questions about your rating territory.