This might have happened to every one of us. If you are wondering why is my car insurance so high, you are perhaps not alone. There are several people who have been wondering on those same lines – why is car insurance so expensive?
So, why is car insurance so expensive, after all? There are several reasons that can help you understand why is car insurance so expensive. Some of the factors that can affect the cost of your insurance can be your driving record, your credit history, previous insurance history, your age, and your driving patterns. The seemingly unimportant factors such as your gender and marital status can also have a bearing on the cost of your insurance.
Why is my car insurance So High?
Having understood the primary reasons why car insurance is so expensive in a seemingly simpler manner, let us analyse the primary reasons why car insurance is too expensive.
1. Your age is below 25 years
If you are a young driver, you are bound to pay more insurance. The insurance companies look at the younger drivers as more of a risk group. Drivers aged between 16 and 19 are expected to face more collisions and other accidents. If you are above the age of 25, you are bound to get better insurance rates.
As another extreme, drivers above the age of 69 are also rated to have a higher risk potential. In such cases, you may again expert a steeper rise in your car insurance.
2. Where you live?
That may be interesting and surprising. But, the location you live in can have an effect on the high car insurance rate. Some of the prime factors that are counted when deciding the car insurance are to have a look at your location. Some of the factors that can play a major role can include the history of the area.
Insurance companies pay enough attention to the factors such as the history of accidents in the area, population demography in the region, and weather patterns. Each of the regions has a few different parameters with respect to the different rates of vehicle theft, vandalism, hailstorms, traffic congestion, and several parameters. The car insurance will also be different in different regions depending on the service provider you choose.
3. Your driving History
Your driving history is represented by the complete history of driving you have had in the past. any of the accidents you have had in the past, and the traffic violations you might have committed in the past. In case you have gone through a handful of traffic violations, you are likely to be charged a higher premium.
A few of the factors taken into account when determining the insurance premium would include Accidents, speeding tickets, DUI convictions, moving violations, and a host of other events. In case you have had a host of driving misadventures in the past, you will find that you will end up finding your car insurance expensive. In the same way, as credit history affects your financial health, the driving history affects your vehicle insurance premium.
4. Your Gender
Why would someone’s gender result in car insurance too expensive? A valid question, but that has more to do with the surveys and studies that have been conducted in the realm of car insurance or more broadly, vehicle insurance. A host of reports have suggested that most of the accidents involve male drivers. Male drivers and riders have been observed to be dying or facing other issues than the female drivers.
That is exactly why male drivers – especially, younger males are charged a higher premium than female drivers. Under ideal conditions, you would find a male driver in the age group of the 20s is likely to pay $ 15 to 20 more than the female counterparts. In the case of the older aged male drivers, they may end up paying $1 to 1.5 more than the female counterparts.
5. Your Marital status
One of the prime options you would find rather interesting can include the marital status you enjoy. It has been observed that males who are married have been known to end up driving more carefully. You will find that the single, divorced, or widowed drivers are known to be committing more issues.
This is the prime reason why insurance premiums tend to be lower for the married couples. Do note, however, that there are some states that do not permit taking the marital status into consideration when checking the premium to be charged for the car insurance. Check out the best options for your needs in an enhanced experience for achieving the best options for your needs.
Also check – What type of Car Insurance do you really need?
How can you lower your Car Insurance?
If you are looking to lower your car insurance premium, the tips above on why is car insurance so high should help you understand the essence of why you should go with a few tips on understanding the best options in terms of getting the best insurance premium. You can indeed save a lot on car insurance by following a few key tips and ideas
A few tips to help you lower your car insurance considerably would include
- Look out for the discounts – Some insurance providers run special campaigns to assist you with the right onboarding. A few insurance service providers may also focus on certain special groups such as military, student, good driver and similar other categories.
- Look for different service providers – Shopping around for the best deals can be one of the thoughtful options that can provide you access to an enhanced and powerful experience in achieving perfect and better results.
- Bundled plans – Going for the bundled plans such as Auto + Home insurance can be one of the best options you would be able to reduce the premium rates.
- Drive safer – Driving safer can be one of the excellent options that can help you achieve more of a positive concept in helping you get access to a greater degree of better deals in terms of insurance premiums. If you have had no accident or policy violations in the past six months, you can get access to a reduced premium.
Well, that should perhaps help you understand what makes car insurance so high and why you should go with the best tips and standards to help you lower the car insurance. This can go a long way in promoting your experience in terms of how to get the most out of the car insurance that you can get access to.