Why is Car Insurance So Expensive?

Why is car insurance so expensive? Well, it’s really not all that expensive when you think about what it actually does. For a comparatively small fee per month or year, you can get all sorts of different types of coverages for your car. If something happens to your car you could even get it fully replaced if you want to. So you see, car insurance has to be a bit pricey because you are basically paying a fee that could help you repair and replace your car if you need it. Well, that doesn’t mean you have to be happy about paying for it, but here is some more information about what goes into determining your car insurance rate. 

Your Driving Record

Your driving record is probably the most important factor in your car insurance rate. If you are deemed a high-risk driver then you will definitely have to pay more. The best way to work on this aspect of your car insurance rate is to be a good driver. If you haven’t been one in the past, it’s never too late to start improving your record. When you have DUIs on your record you may have a hard time even getting a driver’s license let alone insurance.

There will be several steps towards rehabilitation that you will have to do in order to even get that, plus insurance. If you’ve had your license suspended, you will have to go through the mandatory period of suspension plus pay some fees to the court or even the DMV. However, licenses can be suspended for many reasons, not just too many tickets or DUIs. However, any suspension could affect your car insurance rates. In some states your license could be suspended for failure to appear in court for a traffic related offense, lacking car insurance and even failing to pay child support. So, the best thing to do is just get yourself back on track as soon as possible and be a good driver!

Your Statistics

If you fall into certain statistics of demographics you will have more or less expensive car insurance. Actuaries - the people who help to determine insurance rates - have done all the research it takes to match up the likelihood that different groups of people will get into an accident. That’s why younger men and single people of any gender may see more expensive rates. Because the people who look at the statistics believe that they are more likely to be less careful drivers. However, these statistics don’t matter as much for your insurance rates if you have a great driving record and you keep it clean.

Your Location

Locations have a lot to do with your insurance rates. If you live in an area with a high level of vandalism you may see a slightly higher rate because your car is more likely to have its windows smashed or otherwise vandalized. Plus, different locations have different weather sensations that could cause your car insurance rates to go up. They have more dangerous driving conditions and also more weather that could actually damage your physical car, so it’s important to keep in mind. When you have a higher cost of living you may also have a higher car insurance rate due to higher local rates for repair and parts.

The Type of Car You Have

Since your car is the most important part of your car insurance you will see that the type of car that you have is an important in your car insurance. If you have a nice and expensive car, then your rates will be higher. This is because it will be more expensive to replace or repair your car. Sometimes the availability and price of replacement parts could also be a part of the cost of your car insurance. This mainly comes to the comprehensive and collision coverage - that’s the type of coverage that helps you replace and repair your car. You will need to pay more if your car is more expensive; it just makes sense, doesn’t it?

Your Credit

Yes, it’s true that your credit score can affect your car insurance rate but only in some states. If you live in California, they cannot use your credit score in order to get your car insurance rate. However, in other states, they can. If you have bad credit you might think it is not that far that is a factor to make it work with car insurance, but it is. Credit problems are often caused by financial issues, which make it harder to pay more expensive rates for car insurance, but if you truly need it, there are special programs for low income consumers to get car insurance from state programs. So, no matter what, you’ll be able to get covered!

Your Driving Habits

Do you drive an hour to work each way? Do you take a lot of road trips? The more you drive the  more risk you take on for what could happen to your car. However, you have to drive where you have to drive, so it can be kind of a drag that it could affect your car insurance rates. If you want to save, then you could get a job closer to home but that might be easier said than done. Just keep this in mind when you are wondering why is car insurance so expensive.

Insurance History

Finally, there is also your insurance history to consider. If you don’t maintain continuous coverage you could see a higher rate on your car insurance because they don’t like to see that. Don’t worry about this if it is your first time getting car insurance because you will need to build up your good history and many companies give you a discount when you switch to them for the first time.

How to Get the Best Rates

If you want the best insurance rates around the one thing to ensure you can get the best price. You can get multiple quotes from many different companies. How else would you know which one offers the cheapest rates to their customers? When you have a quote from different options you know that there is one that will be the cheapest. However, you should keep in mind that you will need to consider that getting the cheapest insurance ever will not be the most important thing ever. Sometimes it’s worth it to pay a little bit more to get the type of coverage that you actually need.

When you are here you are already one step closer to getting the coverage that you need. You can just easily fill out our free form that is easy to use. You just have to put in your zip code and then you will get access to the quotes that you need in order to make an informed decision about your car insurance choices. You can also call our toll-free number that will give you access to our certified agents who will get you all the information that you need to know. This is the first step to driving safely on the road. Once you are covered you will be happy to learn that you will feel more confident on the road.

Getting car insurance is required in most states because it will help to keep drivers safe. It also helps to keep your costs and liability low if you get into a car accident. Even in states where car insurance is not required you still need to pay a fee to the state if you want to go without car insurance. Make sure that you do get covered because otherwise you could be on the hook for a lot of money if you are the cause of a car accident. You will have to pay for someone’s medical expenses and personal property expenses out of your own pocket.

Now you need to go get covered and make sure that you get the amount of coverage that you need. Find out which company will offer you the cheapest car insurance to see how you can stay safe on the road. You will sleep better at night knowing that you and your family will be protected on the road. Get a quote now for free.