Discount Auto Insurance and Classification of Car Owners

Need Discount Auto Insurance? See if You Qualify

Using factors that determine the likelihood of your being involved in an accident, the National Bureau of Casualty Underwriters has come up with the following classifications used to determine discount auto insurance rates:

Class 1-A. A private passenger automobile owned by an individual; not used in the occupation, profession or business of anyone customarily driving the car or in the course of going to or from work; no operator under twenty-five years of age residing in the insured’s household or employed as a chauffeur.

Class 1-B. All passenger automobiles owned by clergymen come under this classification, provided there is no driver under twenty-five years of age residing in the insured’s household or employed as a chauffeur.

Class 1-C.The same qualifications would apply as did in Class 1-A, with the exception that the automobile is used in driving to or from work. The one-way mileage that is driven to or from work must be less than ten miles.

Class 2-B. This would be the same as Class 2-A, except that the owner or principal operator who is under twenty-five is married but has no children.

Class 2-C. This class would include cars owned or principally operated by drivers under twenty-five years of age who are unmarried.

If you have a son (or daughter) under twenty-five on active duty in the Armed Services, this would not affect your classification. He would not be considered a resident of the insured’s household, unless he customarily drove your car.

Class 3. This class applies to business use of the automobile. It includes automobiles owned by an individual in whose household no operator under twenty-five years of age resides. Also included in this group would be automobiles owned by corporations or partnerships (regardless of the age of drivers involved).

Farmers get a break. Since farmers as a group are a good risk, the discount auto insurance companies allow them some consideration and this is reflected in the rates that they have to pay for their insurance. Generally, even though the farmer is classified into different categories, his insurance cost is about 20 per cent less than what he would have to pay if he were engaged in some other occupation.

How much does classification affect cost of your insurance? If you fall in Class 2-B, you would pay about twice as much for insurance as car owners in Class 1-A. The territory rate would affect the difference between each classification, but you should understand how classification affects your discount auto insurance cost.

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