Owning a vehicle can be an expensive endeavor and the costs don’t end just because you’ve purchased one. In fact, some of them take place only after the sale has been finalized. Not only do you need to purchase the car, truck, SUV or minivan you’d like to own but you need to insure, license and maintain it. While you may not be able to control all the costs that you could incur owning that vehicle, there is one key factor that insurance companies consider highly important… YOU, the driver.
How exactly do they do that? While there is no set method and while each insurance company uses factors in their own way (and typically their own algorithms) to put together an insurance quote, these are the aspects that are individual to each driver…
They say that past behavior is the best indicator of future behavior, and while that may not apply to everything in life, insurance companies use your past driving experience and record to decide how safe you are behind the wheel today. Therefore, drivers with a clean driving record are given better rates than those who have a history of moving violations and accidents.
Experience and maturity come with age, at least that’s what insurance companies are banking on. Statistically speaking, young drivers adept behind the wheel of a car and much more likely to get into accidents so being one or insuring one will cost you more. But there is good news… rates typically go down around the age of 25 with most insurance companies.
Although Michigan, Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania do not allow insurance companies to factor in gender as part of your insurance rate, all others in the USA can (and do) use a driver’s gender to come up with their insurance rate. Going back to statistics, men typically drive more than women and engage in riskier driving behavior than women while they are younger but diminishes over time.
It’s a numbers game and when insurance companies are crunching them, they are factoring in if the prospective driver is married, single, divorced or widowed as a factor of your insurance rate. While it may seem unfair, married drivers are considered to be safer drivers based on the figures and therefore get a better rate than their single, divorced and widowed counterparts.
Whether you live in the urban jungle of a big city dealing with more traffic and congestion or closer to rural cornfields of a small town where deer are more prevalent and accidents are more serious, it’s all factoring into the rate you are going to get from insurance companies.
Own a home or have another vehicle you’ll be insuring as well? Many insurance companies will offer a discount for those that combine a homeowner policy with a multicar policy so if you have another vehicle you own, consider insuring them with the same insurance company to get a better rate.
Primary Health Insurance
If a driver has a primary health insurance policy that use can use as the primary payer in the event of an accident, it can help lower your insurance rates but only if you claim them as the primary.
Remember that thing about past behavior indicating future behavior? To insurance companies, it applies to your claim history as well. If a driver has filed multiple claims in the past, insurance companies assume they are more likely to file claims in the future.
Insurance companies use credit-based insurance scores, along with other factors (except in California, Hawaii, and Massachusetts where it is banned) to determine how likely a driver is to stick to a payment plan or pay their full premium.
Miles Driven Annually
The less a driver is out on the road, the less likely they are to be involved in an accident and insurance companies understand this fact. In addition, insurance companies also take into consideration where that commute may take the insured driver and vehicle, such as driving 35 miles from a rural area to the heart of a downtown area. Obviously, the driver faces different challenges in each area during that long commute and it may impact the driver’s rate.
If you want to find a reliable, safe vehicle and are looking to skip the stressful and difficult hurdles you can run into at other dealerships we invite you to check out our current inventory of Used Trucks, Vans, SUVs, Cars, Commercial Vans and Work Trucks. At Broadmoor Motors Wayland, we specialize in finding the right used minivan, truck, SUV or car to fit your personal or business needs, all while giving you the best deal we can on both your purchase and trade in. Our family has been in the car business for over 60 years and continues to be family owned and operated in our Hastings, Wayland and Caledonia locations with financing available to those who qualify. We will find you the right vehicle to fit both your budget and your needs!
Let Broadmoor Motors Wayland save you time and money when buying your next quality, Pre-Owned Car or Work Truck and on your next Car Rental. Whether you need a short term car rental, long term car rental, a replacement while your vehicle is getting serviced or simply need to replace your car, minivan, truck or SUV with a great used vehicle, we can help you out. Broadmoor Motors is your local choice for Car Sales in the greater Hastings, Middleville, Caledonia, Grand Rapids, Wayland, Byron Center, Dorr, Hopkins, Kalamazoo, Battle Creek, Lansing, Lake Odesa, Kentwood, Holland, Zeeland, Moline, Cutlerville, Wyoming, Hudsonville, Grandville, Jenison, Hamilton, Ionia and Allegan. Ask about our BMG Protection Plan, this is not an aftermarket product! With three locations to serve you in Wayland, Hastings and Caledonia, we’re here for all your Sales & Service needs. Give us a call at 269.397.2400 in Wayland, 269.320.6304 in Hastings or 616.698.9595 in Caledonia to see how we can get you back on the road!