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Why is My Car Insurance so Expensive?

Why is My Car Insurance so Expensive

Car insurance cost is dependent on the policyholder more so than anything else. There are a number of reasons why your auto insurance rates might be high. The most apparent ones, as we’ll see later, are your driving record and age, but there are other things that can contribute to your rate increase. This post helps identify those elements that are beyond your control — such as age — as well as those over which you have some degree of control.


Younger drivers cost more to insure because they are generally new to the road with no experience beyond driver’s education. Furthermore, according to the CDC, one in four automobile accidents involves a juvenile driver. The CDC also found that teens are responsible for $11.8 billion of vehicle repair costs throughout the country. It’s no surprise that auto insurance rates are higher among those who drive during this age group; it’s a lot of money for insurance companies to shoulder. You will not be able to lower your auto insurance premium as a young driver. But, there are a few things you may do to keep your insurance rate from increasing. The most important thing is to maintain a clean driving record and avoid accidents. A budgeted way that most parents of young drivers insure their kids is by adding them to their insurance policy. It’s much cheaper than giving them a policy of their own.

Address And Garage Location

Firstly, your address and zip code matters because it identifies where you live and what the local climate is like. This includes whether it’s a rural community or a location in a big city. Larger, more populated areas tend to run higher premiums due to traffic. Towns in the countryside tend to have lower rates. Your garage or where you keep your car also plays a role if it’s vulnerable to weather. Areas that experience such conditions as tornados, hurricanes, and blizzards are sure to see higher premiums.

Car And Its Primary Use

Take a moment and think about your car. Its make, model, and engine capabilities should all be taken into account because the insurance company will be looking at all those factors when they determine your premium. For example, high-end sportscars with higher speeds are assessed as regular risks of speeding violations. This can be the case for any car in general, but it’s more likely a car built for speed will have more violations or citations. Premiums are also higher because if the car were to be damaged, it would cost a lot to fix due to its exclusive parts.

How you use your car will also be taken into account when setting your premiums. This includes everyday commutes to work or using your car for work purposes itself. That may require commercial auto insurance coverage. But you’ll find that both commercial and personal auto insurance policies look at the mileage you regularly put into your car. This shows how much you are on the road and thus your total accident risk. It’s another general rule of thumb in the auto insurance world -drivers that don’t drive a lot pay less for their insurance.

Marital Status

According to a large cohort study, married people have fewer collisions and fewer traffic citations than single individuals. With that in mind, insurance companies regard married couples as a safer bet than those who are single.

Credit Score

If your credit is poor, you may be charged high premiums. Insurers regard individuals with bad credit as more hazardous than others, which is why they charge higher rates. If your credit score improves, contact your insurance provider immediately to see whether they will reduce your rate. There are a couple of states where insurance companies can’t look at credit scores, like California and Michigan, among others.

Previously Canceled Insurance

Not paying your insurance premiums on time and then canceling it too soon damages not just your relationship with your insurer but also your reputation in the entire industry. When another firm sees that you have canceled car insurance coverage previously, they will be hesitant to cover you and would most likely want a greater premium to do so. To see if they’ll give you a cheaper premium, talk to an insurance representative about the reasons why you previously canceled a policy.

Your Insurance Isn’t Bundled

You may save money on auto insurance if you have a solid relationship with an insurance company. Consider whether combining your automobile insurance with homeowners insurance, renters insurance, health insurance, or a life insurance policy might save you money. Because you’ve combined all of your policies together, the cost of other protection may go down since it’s now only one premium to pay rather than numerous individual ones. As a result of your confidence in them, the insurance provider will be more inclined to collaborate on unique instances, making it easier for you to get what you need.

Set Your Deductible Too Low

Your deductible is the amount you pay before your car insurance company steps in. Typically, the higher your deductible then, the lower your premiums will be. A low deductible is advantageous if you have been in a collision since your insurance coverage will immediately kick in once you pay the deductible. But, because your deductible is so low, you’ll be paying much more in premiums overall. If you’re a cautious driver who doesn’t often drive, raising your deductible and taking a chance on yourself may be an option. Even if you drive frequently, you may be able to afford an increased deductible if your plan includes an emergency fund to cover the cost of your deductible in the event of an accident. If you find yourself in a financial crisis as a result of an accident, however, you might be forced to remain with your policy.

Had Big Claims in The Past

Big insurance claims will always result in higher premiums. If you don’t want to pay a higher premium payment in the future, only report what was destroyed or stolen with minimal hyperbole. Frequently asking for more than you require can lead to greater spending in the long run. Make sure your driving record is free of any judgments or no-fault accidents. This protects you against future premiums hikes if you’re involved in an accident that wasn’t your fault.

Driving Record Isn’t Good

People who have been in car accidents, received traffic tickets, or had other poor driving records can be seen as high-risk drivers by insurance companies. A poor record will usually require an SR-22, which will result in increased insurance costs in the future. There are specialized insurance agencies that offer such policies and certifications to high-risk drivers. The good news is that you can improve your driving record gradually by practicing safe driving. Your insurer will notice and may lower your premiums.

The smartest way to find the best cheap car insurance that fits you and your driving records is to get a free quote from Insurance Navy. Insurance Navy will get you protected and back on the road in no time. Call us at 888-949-6289 or request a quote online. You are also welcome to speak with an agent in person at any of our locations.

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