Auto Insurance Code

Each car or truck that is covered by an insurance company is assigned an auto insurance code. Some insurers refer to the codes as auto symbols. The codes are used to determine the costs of your collision and comprehensive coverage.

 

Details On Car Insurance Codes

Your driving record remains one of the key factors that will determine the costs of your auto insurance premiums. However, when it comes to auto insurance codes, specific items that your insurer will look at are:

• The likelihood that the car or truck will be stolen. Security features such as alarms and customized locks can help to lower your code number.

• The risks of your motor vehicle getting vandalized. The location where you live or work plays a considerable factor in this determination.

• The overall value of the motor vehicle.

• How well your car or truck is built. For example, a car that can withstand great damage during a hail or snowstorm will likely receive a lower auto code for this particular item.

Auto insurance codes generally range from 1 to 27. Higher auto insurance codes result in higher insurance rates.

 

Other Factors That Determine Insurance Premiums

In addition to reviewing car insurance codes, auto insurance companies review other factors before they set individual insurance premiums.

For example, insurance companies review your:

• Age and gender.

• State of residence. States with higher accident rates might be assigned higher codes.

• Number traffic ticket record. Having a lot of points on your driving record is a good way to raise your auto insurance premiums.

• Accident record.

Think of an auto insurance code the way you would a credit rating. Both impact the amount of money you might pay for services.

In fact, auto insurance companies can also review your credit rating history. Like other creditors and insurers, car insurance companies want to make sure that they will be paid for services and coverage that they provide.

You could receive a moderate overall code total by one insurance company and a higher overall code total by another insurance company. Therefore it is advisable to contact three or more car insurance companies to discuss coverage options and premium prices before you sign an auto insurance contract. This way you can increase your chances of securing the coverage that meets your needs at a reasonable price.