What do ISO Vehicle Rating Symbols (VSRs) represent?

ISO Vehicle Rating Symbols (VSRs) serve as a tool to categorize vehicles based on historical claims data and their retail prices. This helps insurance companies assess the risk associated with insuring specific vehicles, which in turn influences how they structure premiums. When determining insurance rates, insurers rely on facts such as the likelihood of claims and the value of the vehicle being insured. By analyzing this historical data, the VSRs provide a comprehensive profile of a vehicle's risk, thus guiding underwriters in setting appropriate premium levels tailored to each vehicle's unique characteristics and market behavior. This approach ensures that prices reflect the actual risk, rather than arbitrary assessments.