When Michigan auto insurance companies are determining how much to charge their customers, they look at a number of factors. Each applicant’s level of risk is evaluated individually according to a proprietary formula used by each company licensed to sell product in the state.
Arguably, the most important factor that is considered when setting rates is the applicant’s prior driving record. A person who has been involved in one or more accidents presents a higher level of risk than someone who has a clean driving record, since the insurer uses past events as a way to predict future events.
Other factors that insurance companies commonly consider include the make and model of the vehicle being insured. Some cars cost more to repair and they are more expensive to insure, while others are more likely to be targeted by thieves and customers who choose them will be paying higher rates for their coverage.
The driver’s age and gender are also important considerations when setting rates. Young or inexperienced drivers are charged higher rates than people who have several years of driving experience, and young males are looking at some of the highest rates of all.
Marital status matters when Michigan auto insurance companies are setting rates. They consider married applicants more responsible than their single counterparts, which means that you may qualify for better pricing after your wedding than before you took vows.