Why do companies charge different rates for different cars, drivers and situations?
Rates are based on statistics involving a company’s experience with different cars, drivers and situations. For instance, some vehicles cost more to repair than others, some are more likely to be stolen and, according to statistics, some are more likely to be involved in accidents. Some people drive many more miles than the average, increasing the likelihood that they will be involved in an accident. Other drivers have very little annual mileage, decreasing the likelihood of an accident. The more you are on the road, the higher your chances of being involved in an accident. The same principle applies to commuting. If the majority of your driving is spent in commuter conditions (increased congestion, people rushing to get to work, inattention due to familiarity with roads) you are more likely to be involved in an accident than someone who is traveling in off peak traffic hours.
