How are drivers classified when it comes to car insurance?

I've heard that there are different classes of drivers. Is this true? How does this work?

Yes, car insurance companies tend to categorize drivers into three classes: preferred risk, standard risk, and high risk.
Preferred-risk drivers get the best rates because they don’t file a lot of claims and they have a lot of desirable characteristics, such as owning a home, having a good insurance credit score, and having a clean driving record.
Standard-risk drivers aren’t the best, but they aren’t the worst, either. They may only have an average insurance credit score, or they may have one or two minor traffic violations on their record. It’s still possible for them to get reasonably priced insurance.
High-risk drivers are saddled with higher premiums because they’re more likely to get into accidents and file multiple claims. They may also have a lousy insurance credit score or a major traffic violation on their record.
Carol Chung
Answered on Apr 12, 2021

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