Top 6 Reasons Why Your Car Insurance Is So High

By Max Anthony •  Updated: 05/18/21 •  9 min read

Car insurance is a necessity for all drivers but many car owners are still wondering why their rates are so high. This blog post will explore the different reasons why your car insurance is so high and how you can lower your car insurance.

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Top 6 Reasons Why Your Car Insurance Is So High

The insurance industry is a tricky one. Many factors can contribute to your car insurance being so  high, but there are also ways you can lower it. These include your age, gender, marital status, driving records as well as coverage types.

  Geographic Location

Car Insurance Is So High
car insurance rates|source

The geographic location is among the reasons why your car insurance is so high. A lot of car owners are unaware that the location where they live can affect their car insurance rates. 

It is important to consider this when looking for a new policy because it can have a significant impact on the cost of your monthly premiums.

Are you aware that your car insurance rates vary depending on where you live? You can save up to 30% on your premium simply by living in certain areas of the country.

For example, if you are looking for a quote from GEICO, and live in New York City, you could pay as much as $1,000 more than someone who lives outside of NYC.

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This is because premiums tend to be higher in urban areas due to increased traffic congestion and higher crime rates. That’s why it pays to shop around for the best coverage at the lowest price!

Age

There are a lot of factors that go into determining your car insurance rates. One of the main factors your car insurance is so high is your age which can affect your premiums. In most cases, younger drivers pay more for their coverage than older drivers.

Car Insurance Is So High
car insurance quotes| quora

You might think that your age won’t affect the cost of car insurance, but it can have an impact. For example, if you’re 18-24 and are buying a new or used car, your rate will likely be higher than it would be for someone who is 55+.

The reason why this difference exists is that younger drivers pose more risk to the insurer. Insurers also take into account gender, marital status, and where you live when they set rates.

Gender

Many people believe that a woman’s car insurance rates are higher than men’s. This is because women are statistically less likely to be involved in accidents, and when they do get into an accident, the damage tends to be more costly. 

However, there have been many studies on this topic that show that gender doesn’t affect your rate of insurance.

 Some studies indicate that if you’re a female who drives for both business and personal use, your rates may go down!

  Marital Status

First, we need to learn more about how the insurance companies set their rates in general before considering any other factors that might come into play when setting an individual’s rate.

 They use many different factors such as age, sex, and type of vehicle when determining what someone should pay for auto coverage. The riskier you are as an individual driver, the higher your premiums will be. 

Marital status does not affect these rates directly but there are some indirect effects on car insurance for drivers who are married and those who are not married.

Married people often pay less for car insurance because they statistically have a lower risk of being in an accident.

The reason that married people are seen as safer drivers is mostly that they are more likely to obey traffic laws, which can be attributed to their fear of harming their spouse or children. 

In addition, married couples tend to share responsibility for both driving and managing household affairs, leading them to be more attentive on the road.

 Driving Record

Driving record is one of the factors that affect car insurance rates. Insurance companies consider a driver’s driving history, age, car make, and model when they determine your premium. 

If you have had accidents or tickets in the past year, then your premiums will be higher than if you haven’t had any accidents or tickets for a while. 

A clean driving record can mean lower premiums for drivers who have been on the road for years and are now looking to upgrade their vehicles from an older vehicle with high mileage to something newer with better fuel efficiency.

If you’re wondering whether your driving history affects how much you pay for car insurance-the answer is yes!

Car Model

Car insurance rates can be affected by the type of car you drive. The type of car, model year, and vehicle identification number (VIN) are combined to create an insurance score for your specific car.

 If you have a newer model with low mileage, then it will likely have a lower rate than if it was older and had higher mileage.

Car insurance rates vary from company to company, and car models can affect the cost of your policy. Car insurance rates are affected by the type of car you own, and if you carry comprehensive coverage or not. 

Comprehensive coverage covers damages to your car from things like theft, vandalism, fire, or hail damage. If you have a newer model vehicle with a low loss history then your rates will be lower because it is less likely that this type of event would happen to your car.

How Can You Lower Your Car Insurance?

Car insurance is a necessary expense, and like any other purchase, you want to get the best deal. There are many ways that you can lower your car insurance quotes when shopping for coverage.

These include improving and repairing your credit score, showing good driving habits, and taking advantage of auto insurance discounts.

Improve Your Credit Score

One of the first things a person does when they buy a car is to find out how much their insurance rates are going to be.

 If you have had an accident, your insurance company will check your credit score and if it falls below 650, then you will pay more for car insurance.

Most people don’t realize that there are many ways to repair their credit score so that they can get lower car insurance rates!

 Car Insurance Is So High
Photo by CafeCredit under CC 2.0

Do you want to get lower car insurance rates? If you’re a driver, your credit score is very influential in determining how much you’ll pay for auto coverage.

If your credit score is excellent (740 or higher), then the best rate on average would be $1,269 annually. A good score (690-739) would cost an annual premium of $2,359 with a fair score (550-689) costing about $4,890 per year. 

But if your credit’s junk and it falls below 550 dollars, those premiums will go up to an astonishingly high amount of $14,798.So what can we do to improve our credit scores?

Your credit score is an important factor in terms of obtaining loans and other forms of credit. It can also affect the rates that are offered for certain types of insurance policies or mortgages.

Start by paying all bills on time every month, including rent, utilities, and mobile phone bills. This will help build a history of timely payments on your report.

Therefore it will show that you have a steady income stream which means they’ll be more likely to lend money to you at favorable terms if needed. 

Also, make sure there isn’t any derogatory information on your accounts such as late payments or bankruptcies. These items could lower your overall rating significantly.

  Good Driving Habits

Driving habits can affect car insurance rates in many ways. Whether you are a safe driver or not, your driving record will be documented and that could affect your future premiums.

To have low car insurance rates, drivers must pay attention when they drive. This includes everyday driving as well as in inclement weather conditions like heavy rain or snow. 

Car Insurance Is So High
driving habits| source

Drivers should also try to be courteous on the road and abide by all traffic laws. These actions will help them avoid accidents and help keep their rates down!

The National Highway Traffic Safety Administration reports that speeding or reckless driving can increase your annual premiums by as much as $2,000. 

What is most surprising about this report is how many drivers speed. According to the NHTSA survey, 60% of Americans admit to speeding with 20% saying they drive 10 miles per hour over the limit.

Auto Insurance Discounts

Several people pay for their car insurance and drive without thinking about it. This is a big mistake. Car owners should take advantage of all available discounts to save money on their auto insurance premiums.

Car insurance is not just something that you buy when you want to. It’s a necessity for drivers in the United States. You don’t have to be paying the full price of your policy, though. 

There are many discounts available to help you save money on your car insurance each month.

Car Insurance Is So High
auto insurance discounts|source

The most common type of discount is called “good driver” discounts and these are given when you have had a clean driving record for a certain number of years or if you go through an approved defensive driving course. 

Other types of discounts might include bundling your home and auto policies together or being enrolled in college courses that have been designated by your insurer as classroom safety courses.

Also, there are discounts for installing anti-theft devices in your car and having security systems installed at home.

Conclusion

There are many reasons why your car insurance is high and there are also ways you can lower it. Your deductible, coverage limits, where you live, which company you choose to insure with, how old your car is, whether or not you have safety features on your car like an alarm system.

All of these factors affect what kind of price range for a premium rate will be offered to you by different companies.

 When looking at statistics from Insurancequotes.com they found that drivers who were under 25 years old had higher rates than those over 25 years old because younger people statistically get into more accidents per year. 

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Max Anthony

Max is a gizmo-savvy guy, who has a tendency to get pulled into the nitty gritty details of technology and cars. He attended UT Austin, where he studied Information Science. He’s married and has three kids, one dog and a GMC truck and a Porsche 911. With a large family, he still finds time to share tips and tricks on cars, trucks and more.