What are the two rating categories for own-damage coverage?

The two rating categories for own-damage coverage are primarily focused on how the insurer evaluates and calculates the risk associated with insuring a vehicle.

Rate Groups categorize vehicles based on various factors that influence their potential risk and the likelihood of claims. These factors can include the make and model of the vehicle, safety features, and the vehicle's historical reliability. By grouping similar vehicles together, insurers can more accurately assess risk and determine appropriate premiums.

Declared Value refers to the amount for which the insured party chooses to cover the vehicle in the policy. This is crucial for own-damage coverage as it defines the maximum payout the insurer would provide in case of a total loss. The declared value directly impacts the premium, with higher declarations generally leading to higher costs due to increased potential liability for the insurer.

Together, these categories allow insurers to refine their rating and pricing strategies, ensuring that premiums reflect both the risk associated with the vehicle and the coverage amount selected by the policyholder.