Insurance spreads the cost of claims among many people so no one has to face the cost of a claim alone. For one person, the costs from an accident could cause bankruptcy. Spread among many people, the costs become affordable.
All auto insurance plans, including Autopac, group you with others, all of whom share three factors that make up your overall risk of claims. You’re grouped with others who live in a similar area, own similar vehicles and use their vehicles like you do. The money collected from your group covers you if you have a claim. In exchange for that protection, you share your group’s costs through your premiums. In part, your premiums depend on how much your group has cost the insurance fund. An important part of your group’s costs are injury claims. To make sure each vehicle shares the injury costs from an accident fairly, we divide those costs equally among all the vehicles involved.
Your rates are determined based on a combination of the following four objective, risk-based factors: