Why is my car insurance so expensive?

Seven Reasons Why Your Car Insurance is Expensive

The Car insurance price depends on various factors, some of which someone can control, and others that are uncontrollable. For instance, a car’s model and make have an impact on the rates of insurance. But trends that are national such as increase in frequency of claim and the rise of medical bills may increase the rates. Here are the main factors that can make the insurance rates to skyrocket.

1. Bad Driving Record
Your record of driving plays a major role in factors that decide your rate of insurance. Drivers that are good always pay less insurance. They are not likely to get themselves involved in any claim. If you get yourself involved in an accident or you get vehicle citations, you may be named as a high-risk driver. Drivers with higher risk usually pay premiums that are higher, because, through claims, they are likely to cost the insurers money.

To find out if you are among the high-risk drivers, contact the insurance company. Also, the Department of Motor Vehicles (DMV) for your state can give you a driving record copy. Citations such as reckless driving and over speeding are put on your record for three to a maximum of five years.

2. If You Have Filed Many Claims
Filing of too many claims leads to the increase of you rate by the insurer. The insurers’ cost per claim is increasing, and they are forwarding the bill to their clients. Apart from increasing your rate, the insurance company may drop you altogether, if you have lots of claims.

When possible, consider paying the expenses of your car from your pocket, it will help you with your concern about the raising of the insurance rates because of claims that are excessive. If you are worried about raising rates of the insurance because of claims that are excessive, for instance, for a fender bender that is minor, you can be tempted to file a claim. Though, the inevitable rates increase for filing claims that are excess can cost you a lot eventually.

3. Canceling More Than a few times
When you fail to give the insurer, the information required, it can cause cancellation. On top of that your local DMV’s fine is included, then your premium may increase because you are a future risk and unreliable.

4. You have a Full Coverage
Having a full coverage while you should be having a liability only can be the cause of your insurance rates being high. Cars that are new are supposed to have a full coverage that will cover the other party and you when an accident occurs.

“Liability only” does not pay anything for your repairs, but will ensure the other party has been covered. Your repairs are usually taken care of by the insurance of the other driver after it has been proved that it was the other driver’s fault. In case the accidents involve you alone, then you are all by yourself in all the expenses.

5. Your Vehicle’s Garaging Address

Your vehicle’s location can affect the rates of your car insurance. The rate of crime, the pattern of weather, and the figure of claims that have been made within the environment of your vehicle’s garaging address are all factored into your premium’s price.

If you decide to move and stay in a city that is heavily populated rather than an area that is spread out suburban, your rates are likely to go up because of these factors. If a place usually has more unpredictable weather, you can experience an increase in the rate because of the risks of snow, tornado, hurricane, or other weather phenomena that are damaging.

Before moving to a new area, contact an agent of the insurance to find out how your move can affect your overall premium cost.

6. Your Age
The insurance for young drivers is expensive because they don’t have enough road experience and overall, they are not mature. Many companies of insurance feel that motorists who are young have a higher possibility of getting involved in an accident. Also, CDC (Center for Disease Control and Prevention) claims that drivers who are teens cause 11 percent of the vehicle’s injuries total costs. Due to this statistic, insurance companies always consider young drivers as a higher risk.

Most of the companies that provide car insurance charge young drivers more until they are 25 years old. After that, the rates level of insurance will be constant until the driver reaches age 65 and above, the rates increase because of motor vehicle function is decreasing, the person increases the use of prescribed medication, and the cognitive capability diminishes.

7. Bad Credit
Studies reveal that credit scores that are poor coincide with payouts and claim frequency that is higher. So, if you have a credit history is bad, your insurance rate will be higher. If you have a bad credit record, insurance can only give you a high-risk auto insurance rate, because they see you as a higher risk.

Try and identify the cause of your car insurance being expensive, then look for a solution to the problem.

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