Some people do wonder why their car insurance is so high. There are a lot of reasons why your insurance would be very expensive. We will put through all the reasons why your it would be very high in this article.
Your car insurance could be very high and expensive due to common causes such as driving record, your age, not paying all your bills at the due date, where you live and your occupation, even your car model could also increase your insurance rates.
Factors that Can Increase Insurance
These are some of the reasons or factors that can increase your car insurance rates:-
- Driving Record
- Age
- Gender
- Car Model
- Address
- Insurance Company
- Occupation
- Credit Score
- Years of driving experience.
- Driving Record
Your driving record could increase your insurance if you have had an accident in the past, traffic tickets or if you violate any of the laws governing driving in the US
- Age
Your age also could increase your insurance because the younger driver is probably in their 20s pay way more than older drivers in their 30s, this is because the younger drivers are less experienced and more prone to be involved in ghastly accidents.
- Gender
Male and female insurance rates are not the same in most states, male insurance rates are usually higher than females especially when they are young, for instance, a young male in his 20’s insurance rates is usually more than a female in the same age group. But by age 30, the gap between both genders decreases significantly.
- Car Model
Your car model is also very important, insurance companies would consider some factors like how popular your car model is or how much your car would cost to repair if involved in an accident, and so on. Sports cars usually have higher insurance rates because of the high it requires.
- Address
Your location, where you live is a very common factor that affects insurance rates. Rates differ from state to state, some states pay less for car insurance while some states might pay twice the amount of the lesser states, Also, rural drivers usually pay less than the city drivers this is because city drivers are more prone to theft and accidents, unlike the rural drivers.
- Insurance Company
Insurance companies differ a lot significantly in their rates, while some companies’ rates are very high, others are way cheaper. You can always switch to a cheaper company if you can’t meet up with the higher ones, you can go around and compare between company rates and choose the one best for you.
- Occupation
Drivers with certain occupations are more likely to pay more insurance than other occupations, this is because drivers with these occupations are more prone to file for insurance claims than others, however, some states have banned the use of occupations as a means of setting insurance rates.
- Credit Score
Your credit score is also a very important factor that affects insurance rates, most car insurance companies would consider your credit score when setting your rates and if you have a low score or no credit history, you would most likely be charged high for insurance. However some states have banned credit scores as a means to calculate insurance rates, such states include California, Massachusetts e.t.c. and if you reside in any of these states, your credit score won’t affect your car insurance rates.
- Years of driving experience
Your car insurance rates are more likely to decrease with your experience as a driver, if you started driving at a very young age, your insurance rates decrease as you gain more experience in driving.
How to Lower Your Car Insurance Rates?
You can always lower your car insurance rates if you take the necessary steps needed to decrease them, some of these steps are:-
- Drive safely and carefully to avoid accidents
- Pay your bills on time
- Choose your car model according to what you can afford as insurance bills
- Ask for discounts
- Increase your credit score
- Choose an insurance company with lesser rates or with rates you can afford
Conclusion
Your car insurance rates could be very high due to many reasons, however, some states have banned some of the factors that could increase your insurance rates. You can change your location or even your car insurance company to the one that favors you.
Frequently Asked Questions
- Why is my insurance rate so high as a 20years old?
Answer:- As a young driver, your rates would be higher because of the less experience you have in driving.
- Can my marital status affect my car insurance rates?
Answer:- Yes, married drivers usually have lesser rates than single, divorced e.t.c.
- How can I lower my car insurance rates?
Answer:- There are many ways to decrease your insurance rates and a few are stated above.
