Wondering why your car insurance is so expensive? Several factors could be contributing to your high premiums, including your driving record, location, vehicle type, or credit history.
Recent insurance claims and violations can also lead to increased rates for three to five years. In addition, it might be that your auto insurance carrier simply charges more than others.
However, in this blog post, we’ll explore the reasons your car insurance might be so expensive and provide some tips on how you can lower your bill. Keep in mind that some states prohibit the use of one or more of these factors in insurance pricing, so they may not all apply where you live.
Why Is My Car Insurance So Expensive?
There are several factors that contribute to the cost of car insurance, including:
Age
Young, inexperienced drivers are more likely than senior drivers to be involved in a fatal collision. Insurance providers therefore charge higher premiums for drivers in their twenties.
However, the usual annual full-coverage and minimum coverage prices for drivers of various ages with a solid driving record and credit are provided below.
| Age | Full coverage | Minimum coverage |
| 20 | $3, 576 | $1, 023 |
| 30 | $1, 769 | $506 |
| 35 | $ 1, 718 | $488 |
| 40 | $1, 767 | $477 |
| 50 | $1, 570 | $452 |
| 60 | $1, 507 | $445 |
| 70 | $1, 607 | $493 |
Gender
Most states allow insurers to charge varying rates for male and female drivers. This, however, results in young men being charged higher rates than young women. The price disparity between men and women narrows considerably by age 30, but it never completely disappears. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania are among the few states that prohibit insurers from discriminating based on gender.
Your Job
Drivers in specific occupations pay higher rates because they are more likely than others to submit insurance claims, according to certain insurers. However, consumer advocates have disputed the usage of occupation in determining vehicle insurance prices. Some states have prohibited it or are contemplating doing so.
Location
Location is one of the most important elements influencing your vehicle insurance prices. Average premiums vary substantially per state due to varied rules. Rates vary substantially by ZIP code and neighborhood. For example, rural drivers earn less than those in cities, where vandalism, theft, and accidents are more likely.
Driving Record
If you’ve had at-fault accidents, traffic citations, or offenses such as a DUI, you’ll pay more for vehicle insurance than a driver with a spotless record. For example, a 35-year-old driver with good credit and a DUI will spend 88% more for minimal coverage than a similar motorist with a clean record. In some situations, you may require a business that specializes in insuring high-risk drivers.
Mileage
Low-mileage drivers frequently receive lower vehicle insurance rates since less time on the road implies less potential for an accident. Low-mileage drivers can save money by selecting pay-per-mile insurance, which calculates premiums based on the number of miles driven.
Where Your Car Is Kept
Where your car is kept overnight is also important. Keeping your car in a garage is less dangerous than parking it on the street, and your insurance costs may reflect this.
Year Of Driving Experience
If you begin driving at 23, you will most likely pay more for auto insurance at 25 than someone your age who has been driving since they were 16. Your rates are expected to fall as you gain more experience behind the wheel.
Your Car Insurance Group
Insurance companies classify different car types and models into distinct risk categories. In general, the higher your car’s insurance group, the higher your rate.
How To Reduce Your Insurance Policy Payments
While you cannot modify every factor that vehicle insurance companies consider when determining your premium, there are various strategies to obtain reduced prices.
- We recommend that you compare rates from at least three firms each time your insurance policy is up for renewal. When violations are removed from your insurance history, your rates will also decrease.
- If you’re looking for a secondhand car, pick a well-maintained model with appropriate safety features. This will result in the most economical charges.
- Track your driving in real time and provide discounts. If you’re a careful driver, using Progressive’s Snapshot or Geico’s Drive Easy can help you save money on your insurance.
- Some firms provide pay-per-mile insurance, which might be cost-effective if you have a short commute or don’t drive frequently.
- Your firm may provide auto insurance discounts for taking certified driving courses.
- The cheapest alternative is to carry state minimal liability coverage.
- If you have full coverage (comprehensive and collision), a greater deductible lowers your auto insurance premiums, and vice versa. Keep in mind, however, that a greater deductible translates into higher out-of-pocket expenses in the event of an accident.
- As your credit score rises, you will be able to obtain better rates. Good credit will help you avoid paying expensive premiums.
Frequently Asked Questions
Why Does My Insurance Keep Going Up?
The biggest reason for rising auto insurance costs is an increase in the frequency of incidents across the country, which leads to more insurance claims.
Does Car Insurance Ever Get Cheaper?
If you have no accidents or infractions on your insurance history, your car insurance can become more affordable. Companies occasionally lower rates based on market conditions or governmental laws. However, if you want to get a lower rate right now, you should compare quotations.
At What Age Does Car Insurance Go Down?
Once you reach the age of 25, your auto insurance premiums should begin to decrease as long as you do not file any claims. This is because, statistically, teenage drivers aged 17 to 24 are more likely to be involved in a traffic collision.
Car insurance costs typically fall between the ages of 25 and 60, assuming no claims. However, as you reach the age of 70, it may begin to increase again.