Why Your Car Insurance Costs So Much And What To Do About It

Two people with the same exact car but living in different areas of the country and of different ages are going to pay vastly different insurance rates. It’s the way insurance works. There are a lot of factors that go into an insurance policy quote so you may pay a rate much higher than somebody else.

If you’re wondering why your insurance is costing you so much money then you have to understand what some of the factors are that go into the policy price. Although some factors can’t be changed, there are some ways to tackle the high price of your car insurance.

In this article, we will go over several of the reasons your car insurance is high and some tips on how to reduce the cost.

You’re financing your car

When you buy a new car and want to finance it, there is a requirement that you have full insurance with all the bells and whistles. While you always want to have the best car insurance , you don’t always need everything in it.

Unfortunately, there is not much you can do about how much coverage you have. What you can do is shop around to lower the cost of the premium if you find a competitive quote.

Once you have finished paying off the car then you can go through your policy and drop some of the comprehensive coverages that don’t apply to you. It’s also possible to lower your liability coverage to the minimum that the state where you live requires.

You’re a poor driver

How you drive is completely within your control so there is no excuse for high premiums when you are often getting into accidents or speeding tickets. Your points go through the roof when you get an infraction and it can take years of good driving before the rates start dropping.

Make sure to stop driving aggressively and follow the rules of the road. You will have lower expenses right away with the lack of speeding tickets and accidents so enjoy that for the moment. Then, as each year passes without incident you will see your rates slowly edge downward.

Where you live

Unfortunately, factors outside your control make where you live a high risk for insurance companies. This means that although you are a good driver, you will be paying more because of others.

There is a difference in rates between the suburbs and the city as the city sees more frequent accidents. Since there is more congestion and a lot of stimuli that can be distracting, it is far more likely that there will be accidents there. In the country and suburbs, there are fewer distractions, less traffic, and wider streets.

If you have full insurance with theft included then you will also pay a high premium if you live in an area that sees frequent car thefts. Even the model of the car will have an effect if you drive a car that is often the target of car thieves.

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