A driver who is looking for Maryland car insurance coverage needs to be aware of the types of factors that providers consider when setting rates. One of the main factors that influence car insurance rates in MD is the applicant’s driving record. Insurance companies consider past events as a way to predict how someone will behave in the future. A person who has been involved in one or more accidents is going to be charged higher rates for coverage than a car insurance buyer who has a clean record. The same thing will happen in a case where a driver has moving violations on his or her record.
The make and model of the vehicle being insured is another important factor that companies consider when setting rates. Some cars cost more to cover, simply because they are more likely to be involved in accidents or are more pricey to repair. Others cost more to insure because they are more likely to be targeted by thieves. Customers who choose to buy an SUV will likely be paying higher car insurance rates because these vehicles are more likely to cause significant damage to other vehicles when involved in a collision.
Before setting rates for coverage, a Maryland car insurance company will ask what the vehicle is being used for. A car that is designated as being used for business purposes costs more to insure than one that is designated personal use only.