Why is my car insurance expensive? Many people ask themselves this question before making a monthly installment payment or while shopping for affordable car insurance.
However, some people are not aware of the things that could result in a higher auto insurance premium. There are circumstances or driving records that are not in your control and can increase the price of your premium drastically.
- You have had a DUI in the past
Many companies increase the premium rates for people with bad marks or many violations in their driving record. Similarly, if you have been given a DUI, the insurance companies always view you as a high-risk drive unless your driving record improves over time. Again, drivers with an extremely poor record are forced to get an SR-22 before they drive legally. Fortunately, if you improve the driving record, you could convince them to lower the premium costs and promise them you won’t repeat the past mistakes. You can also look into DUI insurance.
- You live in a city
Your place of residence impacts the rates of your car premium insurance. Urban places have higher rates than remote areas. Also, the local crime rate, weather patterns, and the number of claims that have been made within your vicinity of the car’s garaging address are included in your premium price. If you relocate to a densely populated area, you will notice an increase in the rates.
If your location has an unpredictable climate, you might experience rates go up due to the risks of a tornado, snowstorm, hurricane, or other damaging weather. If you are going to a new location, it is essential to talk to the insurance to know how much the move will impact the overall price of the insurance.
- Your age
Insurance rates for a younger driver can be pricey. This is due to a combination of lack of maturity and experience on the road. Many companies feel that teenage motorists are likely to get into a collision with another car. According to the Centers for Disease Control and Prevention records, young drivers are accountable for 11% of the total costs of vehicle injuries. Due to these statistics, many insurance companies increase their insurance rates.
Moreover, 16 to 19 years old drivers are 3 times more likely to get involved in a fatal crash than a 20 years old driver as per the statistics given in 2018 by the Insurance Institute for Highway Safety.
Until the young driver turns to 25 years, the insurance policy remains the same, and so long as the statistics haven’t changed. However, the teenage driver may get a discount if they are attached to their parent’s policy.
- Your vehicle and its usage
The make and model of your car and how you often use it affects the price of an auto insurance premium. The more desirable and expensive the automobile, the higher the risks of catching the thief’s eye. Also, expensive vehicles have higher rates. If you use your car for long daily commutes to work, the insurance companies say you are at a higher risk of being involved in a collision than people who only drive their cars for weekend drives. Whether you have a clean driving record or not, your rates remain higher as per the vehicle’s miles.
- Your past insurance claims
Once an insurance company has seen a large payout for theft or accident motivates them to give you higher rates regardless of whether you were in the wrong or not. To prevent such premium payments in the future, it is essential only to claim what was stolen or damaged without exaggerating. Furthermore, if the accident wasn’t your fault, you need to ensure the law officers have recorded it to avoid high premium rates. Your premiums will also go up if you were at fault in the accident that resulted in big payouts.
If you feel like your car insurance premiums are too expensive, don’t hesitate to shop around and receive quotes from other car insurance companies. While it’s hard to avoid a price increase from a DUI or past accident, you shouldn’t avoid looking for cheaper prices anyway. Just continue to maintain a good driving record and you should be fine.