What factors influence BMW insurance premiums?
When you shop for BMW car insurance, you’ll likely notice that insurance providers will ask a number of questions when calculating your premium. This is because insurance companies take several factors into account when determining your rate. A driver’s age, location, annual mileage, and driving record can all influence how much they pay for car insurance. BMW drivers might find it helpful to understand the most common factors affecting auto insurance rates in Canada, which are as follows:
Age
An insurance company will ask your age when calculating your insurance premium. Why? To an insurance company, age and risk go hand-in-hand. The younger you are, the less driving experience you have, and the higher your insurance premium will be. Seniors are another age group that may pay more for car insurance based on statistical data.
Location
Your location can also influence your insurance rate. If you live in a metropolitan area like Toronto or Vancouver, your car insurance may cost more. Since there is more traffic on the road in urban areas, your chances of getting into an accident increase, especially if you drive during rush hour. In contrast, BMW drivers who live in rural parts of the country may pay less for car insurance. Further, if you live in a part of the country prone to climate related incidents, your insurance premium could be higher.
Annual mileage
How frequently you drive is another factor insurance companies will consider when calculating your rate. If you don’t plan to drive your BMW very often, your chances of getting into an accident go down, and so too may your insurance premium for a low mileage policy. In contrast, if you spend an above average amount of time on the road, perhaps you drive as part of your job, you have a long daily commute, etc, or you frequently drive at night or on the highway, the cost of your BMW car insurance may be higher.
Driving history
When calculating insurance premiums, insurance companies will require information about your driving history. They will request a copy of your driving record and will use your level of driving experience to gauge your risk level.
A lack of driving experience is a red flag to insurance companies, which is why young drivers tend to pay the highest premiums. However, driving experience in and of itself isn’t enough to lower your premium. You must also have a clean driving record. A clean record paired with ample driving experience indicates that you are a safe and responsible driver, and your insurance premium may be lowered accordingly.
However, if your driving record is full of speeding tickets, collisions, and DUIs, then your insurance premium may be raised.
Model and year of BMW
The BMW model you purchase can affect how much you pay for auto insurance. The general rule of thumb is that the more expensive the vehicle, the more it will cost to insure, simply because repairs and the cost of parts are typically higher. As BMWs are luxury vehicles, they tend to cost more to insure. However, choosing one of the cheaper models, or purchasing a used BMW rather than a new one, may save you money on car insurance.
