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Calculating Car Insurance Rates

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 04/01/2018

Q: Why can’t insurance companies tell me exactly how my car insurance rates calculated?

A: Because a computer calculates car insurance premiums now.

That is the simplest answer to this very common car insurance question. Gone are the days where underwriters calculate personal car insurance rates, now computers figure out your eligibility and rates by using a multitude of factors and formulas. And to be honest, most company employees don’t even know how your rates are exactly calculated by the computer. So when they tell you they don’t know or they can’t give you that information, they really don’t know, they aren’t lying to you.

The only thing they can tell you is how something can negatively or positively affect your car insurance rates.

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Michele Wilmonen

Michele's first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she's earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

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