When setting a car insurance premium, insurance companies first consider the individual’s driving record. Obviously, a driver with a record that’s clean of accidents and tickets will pay less than his friend that doesn’t have a clean record. Another important thing that insurance companies review is statistics, which they use as a way to predict risk. Some examples of those are cars that are used in the city are more likely to get stolen than in the country, and young inexperienced drivers are more likely to get into an accident than more mature drivers.

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