Why is my car insurance so high?

Doesn’t it seem like car insurance rates are high? I don’t know about you but personally I would like to know why?

Below we answer the question; why is car insurance so expensive? To help out, we also go over a few alternate choices to potentially lower your rates.

Reasons why your car insurance rates are high;

#1 Your driving record isn’t the greatest. When it comes to determining car insurance rates your driving record is a major determining factor. Improve your driving record, improve your rates. Keep in mind everything is accounted for, tickets, violations etc.

#2 How often you drive. Do you drive long distances or use your vehicle for work? Monthly milage plays a huge determining factor in what your rate is. Drive less, lower your rate.

#3 Where you live. Where you live is very important. Insurance companies calculate rates based on zip codes. If you live in an area prone to accidents or theft, your rates may be higher than normal.

#4 Age, marital status, or gender. When an insurance company dictates your rate they take into consideration historical averages. For example people that are younger in age are more prone to accidents and driving violations, so they experience higher rates. The positive side of this, is if you’re married you could get lower rates as a couple.

#5 The type of car you drive. If you drive an expensive car your rates will be higher, due to the fact of the payouts potentially being higher. If you drive a car that could potentially be dangerous, your rates will be higher. Check with a broker to find out what all of your options are.

#6 Your deductible could be too low. The reason your rates could be high is, your deductible is lower than normal. If you feel as if you’re a safe enough driver. Never had an accident or reason to pay out a deductible, an alternative route may be to get a higher deductible.

#7 Your coverage is too high. Another common reason for high rates is high coverage amounts. Talk to a broker and find out how much you’re actually covered for and if there is a possibility of lowering those amounts.

Final thought;

This is a basic list to get you started on a path to lower car insurance rates. If you have additional questions or would like to speak to a broker directly, please feel free to reach out to us. We’d love to hear from you!