Why Is My Car Insurance So High And What Can I Do To Decrease My Premiums?

Monday, January 22, 2018

While your car insurance rates may seem high right now, there’s often a reason for it. The insurance industry is based on complex algorithms, and when you fall into certain categories, you end up paying a lot.


Luckily, there’s some good news. Since there’s often an exact reason why you’re paying so much, there’s also things to do that can decrease your premiums. For many drivers, a few quick changes will lower their auto insurance substantially.


Why is My Car Insurance So High?


If you’re curious why you’re paying so much, you’re in the right place. There’s a number of reasons why your auto insurance premiums are so high. Some of the most common ones include:


  • How Much You Drive: If you drive a lot, you’ll pay more for car insurance. The more you drive, the more risk the insurance company accepts – no matter how good a driver you are. If you’re a traveling salesperson putting a ton of miles on your car, it shouldn’t be a surprise you pay a pretty penny for insurance.


  • Your Driving Record Matters: If you have a history of crashing cars and filing claims, then the insurance company will always factor this into how much you pay in premiums. The more likely you are to get in a wreck, the more likely they have to pay out a claim.


  • Credit History: Surprisingly, your credit history plays a large role in your premiums. If you have great credit, insurers believe you’re more likely to be a responsible driver. If you have bad credit, they know you’ll be more at-risk to file a claim.


  • Age, Sex, Marital Status: The insurance industry tracks all these things and knows which ages and sex are more likely to get into a crash. If your grouping is at a higher risk, you’ll pay for it in premiums.


  • Your Location: In places with inclement weather or high crime, car insurance premiums tend to skyrocket. In safe areas where there isn’t much sleet or snow, premiums often go down. Again, this all relates to risk.


  • Type of Car: If you drive a Subaru or Hyundai, you’re likely to pay a lot less for car insurance than some who drives a sports car. The insurance companies know people buy sports cars to go fast. So, they charge higher premiums for them.


  • Type of Policy: Finally, the type of car insurance policy you carry will play a significant role in the pricing. A liability policy will often be a fraction of the cost compared to the largest plan. That shouldn’t surprise anyone.


What Can I Do to Decrease My Premiums?


Now that we know why car insurance can be so expensive, let’s take a look at how to lower premiums. With a few changes, many drivers can drop their premiums by hundreds of dollars every single year.


Here’s how:


  • Shop Around: The easiest way to find a better deal is by looking. Before you sign up for another year with your current insurance company, get a few quotes from competitors. Just make sure you’re comparing apples to apples – not apples to oranges.


  • Higher Deductibles: One simple way to lower your premiums is by raising your deductibles. When you raise the deductible, you’ll drastically lower the premium. This can save you a lot of cash.


  • Improve Your Credit: The insurance industry is huge on credit. If you improve your credit score over the course of a year, make sure your insurance company knows it. Your rates should reflect the improvement.


  • Look and Ask For Discounts: Don’t be afraid to look around and ask your insurance agent if there are any discounts available. Many companies offer safe driver discounts, student discounts, and more. It never hurts to ask.


Get a Great Deal On Car Insurance


If your car insurance premiums have gotten out of hand, the smart thing to do is get in touch with a few insurance agents and get a few quotes. See which company offers you a good deal and then ask if you qualify for any discounts. With a few changes, you could save hundreds a year on car insurance!

If your car insurance seems high, contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.