Why Is My Car Insurance So High?

If you’re wondering why your car insurance rates are so high, you’re not alone. A combination of factors affects your premiums. While you can’t change the way you drive to get a lower rate, there are some steps you can take to decrease your insurance rates. Consider lowering your deductible, raising your deductible amount, and dropping collision and comprehensive coverage, among other things. If you can’t make these changes, consider a pay-as-you-drive program. liability auto insurance quotes

Where you live plays an important role in your insurance premiums. Many factors affect rates, including the history of accidents in your area, population density, and weather patterns. For example, some states ban insurance companies from using age and gender in determining rates. While this is an unfortunate situation, you can still make adjustments to your insurance policy to lower your premiums. Hopefully, these tips will help you get the coverage you need without breaking the bank.

Your driving record is a big factor. Insurance providers check driving records when renewing policies. Certain incidents can make your insurance premiums go up. A speeding ticket, for example, can raise your premium by 20%. A collision will drive your premiums up by 34%. A DUI can cost you thousands of dollars in fines, attorney fees, and lost wages. Thankfully, a simple parking ticket won’t raise your rate significantly.

Insurance premiums can be higher than you think. You may have good driving records, but not a lot of accidents. Even if you’re not a high-risk driver, your premiums can still be higher than what you would have to pay if you had an accident. Depending on the state you live in, this amount could increase considerably. You may also have bad credit or incidents on your driving history. If you don’t know what factors affect your premiums, you’re in for a surprise.

There are ways to lower your premiums. Insurance companies compete for your business and offer a variety of discounts to attract new customers. If you’re wondering why your premiums have gone up, make sure to contact your insurance company and ask about discounts. If you’re having difficulty paying the same amount for car insurance as you did before, you can ask your agent or broker to discuss options for reducing your rates. You might be able to save a few hundred dollars a year by reducing your rates.

Your driving history also plays a big role in your insurance premiums. If you’ve ever been in an accident or caused a significant amount of damage, your premiums will rise. However, a minor fender-bender isn’t so severe. Insurers will take a look at your history to determine whether you are a high-risk driver. If you have a clean driving record and a poor credit history, your premiums will be lower.

While you’re shopping for your car, consider the type of car you plan to buy. Certain types of cars are more expensive to repair, and insurers are more likely to pay a high amount for a collision claim. It may also encourage aggressive driving, which increases your rates. A bigger, safer car with more protection will have the lowest insurance rates. A smaller car, on the other hand, has very high insurance rates because it is more likely to sustain damage in a collision.