When you're shopping for car insurance quotes from car insurance companies the phrase "incidence rate" will arise frequently. Many consumers do not fully understand what this means, but in reality it's just a easy procedure to determine the risk level of your vehicle by using the statistics that are given by auto industries that show the car insurance company how likely your car is to be involved in an accident, be stolen, or the severity of damage it suffers from a small accident.
When one applies for car insurance the company is not only interested in the driving record, but also in the kind of car they drive. There are several factors that may affect the incidence rate of a car, such as its popularity among car thieves due to value after disassembly, weaknesses that could lead to accidents or failures, or the temptation that the driver will engage in reckless driving due to superior performance levels.
To determine the level of risk the car insurance company will look at professionally produced statistical lists supplied by the auto industry. These lists include information such as the availability of parts, failure rates, and the number and types of accidents the car is generally involved in. These have all been thoroughly researched by experts in the field who specialize in statistical analysis.