Which factor is considered in auto insurance underwriting?

In the context of auto insurance underwriting, the assessment of an applicant's history regarding points and car accidents is a crucial factor. Insurance companies evaluate this information because it provides insight into the driver's risk profile. A higher number of points on a driver's record, typically resulting from traffic violations or accidents, indicates a greater likelihood of future claims. Insurers aim to minimize their risk by identifying applicants who have a history suggesting they are more prone to accidents or infractions. Consequently, this analysis plays a pivotal role in determining both eligibility for coverage and the premium rates assigned to that coverage.

Other factors, such as credit score, age, gender, and the type of car insured, are also relevant in the broader context of underwriting processes. However, the most direct and significant influence on an applicant's immediate risk level and insurance premium comes from their driving history, which is encapsulated by the number of points and car accidents.