If you are insured with State Farm you may see a slight increase or decrease in your premium due to the company's annual vehicle insurance ratings for certain makes and models.

There are risks that come with insuring a specific type of vehicle and so the insurance company uses data on claims payments in order to calculate that risk for certain makes and models. This is done once a year in order to keep the calculations as accurate as possible. Other factors that go into the calculation are on an individual basis such as the policyholder's driving record, claims history, and location. This claim information will be used to "create separate indices that reflect the ricks of collision damage as well as damage and theft, with that information used to help determine premiums for collision and comprehensive coverages," (State Farm Insurance Updates Annual Vehicle Ratings, John Pirro, Online Auto Insurance News,

http://news.onlineautoinsurance.com/rates/state-farm-car-insurance-annual-ratings-95603).

State Farm also totals the claims which included injury to the drivers of the insured vehicle. Certain makes and models could potentially be eligible for a discount on their car insurance. The amounts paid out due to damages to other vehicles in a collision and their passengers' injuries were also calculated in order to help set up premiums for liability coverages, (State Farm Insurance Updates Annual Vehicle Ratings, John Pirro, Online Auto Insurance News).

The difference policyholders will see in their premiums next month? Well State Farm spokesman Dick Luedke says "it may go down a little, it may go up a little based on what the claims data shows. But we're talking a very small amount," (State Farm Insurance Updates Annual Vehicle Ratings, John Pirro, Online Auto Insurance News). State Farm wants this vehicle ratings system to service as a guide for consumers when shopping for new vehicles.