Your car insurance and you
Many factors determine car insurance rates
by Brian DiTullio

NORTH VALLEY – The commercials bombard you, and the agents romance you. But at the end of the day, you still have to have that little card that states you have car insurance.

Several factors go into determining car insurance, and the make of car isn’t necessarily the largest factor.

“The base rate is defined by the individual. Zip codes aren’t as much of a factor as they used to be,” said Antosh G.

Nirmul, owner of Desert Integrity Insurance in Carefree. “Your credit score is a factor as well.”

Nirmul said there is no way to hand calculate rates anymore due to the number of factors now considered, including demographics, theft risk, miles driven and the driver’s own history of accidents, claims and tickets.

“From that, the vehicle data then is added in,” he said, which includes the cost to repair, safety record, horsepower and likelihood of theft.

The risk of theft factors significantly as the high rate of stolen cars affects Arizona insurance rates substantially. According to the Uniform Crime Reporting program, Arizona ranked third in the country in reports of car theft in 2005. Arizona law enforcement agencies logged more than 50,000 reports in the metropolitan areas, or 924.4 thefts per 100,000 individuals. Stats for 2006 are not available.

For the Phoenix‑Mesa‑Scottsdale area, 1,110.4 theft reports are recorded per 100,000 individuals. The national average in 2005, according to UCR, is 4,16.7.

Arizona residents paid an average of $920 on each vehicle in 2003, the latest year stats are available. This amount placed Arizona 13th in the nation, according to the National Association of Insurance Commissioners.

Not surprisingly, owning a more expensive car with loads of options is more expensive to insure than a cheap car with  minimal features. The cost of repairing all those “add‑ons” drives up the base rate, said Nirmul, as do some safety features.

Most safety features bring down insurance costs since they lessen the risk of personal injury. However, features such as  the “crumple zones” make the car safer for the driver and passengers but they destroy the vehicle, according to Nirmul.

The Web site Insurance Information Institute, iii.org, recommends customers get at least three price quotes, ask for a higher deductible, take advantage of low‑mileage discounts for shorter work commutes, and compare insurance costs.

Other discounts available customers should be aware of are, according to the Web site:

·   No involvement in an accident in three years

·   No tickets in three years

·  Successful completion of a defensive driving course

·  Ownership of an anti‑theft device

·  Multiple insurance coverage with the same agent, such as car and homeowner’s insurance

·  Being a longtime customer of the same company

Another aspect of insurance costs drivers should be aware of are uninsured drivers. The Insurance Research Council reports more than 20 percent of Arizona’s drivers are at the wheel without insurance.

“That’s almost one in four drivers,” said Nirmul, adding the cost of covering uninsured drivers is factored into insurance rates.

So, with geography a factor, where is the cheapest town or city to insure your vehicle?

Nirmul said there is virtually no difference between Carefree and Cave Creek, but that Scottsdale actually comes in slightly cheaper than both.

The most expensive? According to Nirmul, zip codes around the Paradise Valley Mall due to the excessive amount of vehicle theft reports emanating from that complex over the last few years.

“The difference in zip codes differs from company to company,” he said. “But it all comes back to the individual.”