4 Reasons Why Your Auto Insurance Premium Is High

If you have discovered that you are paying more for your auto insurance than other people you know, there is more than likely a reason why your insurance premium is higher.

1. Less Than Stellar Driving Record

One of the biggest reasons you may face high premium rates is your poor driving record. If you have driving violations, accidents, and lots of claims, your rates are going to be higher than someone with a clean driving record. Luckily, violations, accidents, and claims will fall away over time and will not count against you. So, if you have a bad driving record right now, work to avoid traffic violations and accidents. Over time, you should see your premium rates drop as your driving history fades.

2. High-Risk Area

Next, you may live somewhere that is considered high risk by your insurance company. Factors such as the number of uninsured drivers, population density, rate of accidents, rate of car theft, and even the weather are all used to determine if a particular location is at higher risk than another location. If you live somewhere where your risk of getting into an accident or filing a claim is higher, this will be reflected in your premium.

3. High Deductibles

What rate you set for your deductible can play a significant role in what you pay for your premium. Having a lower deductible may seem like a bargain. However, it means you are taking on less of a financial risk, and as a result, your premiums will be higher. Adjusting your deductible to the largest amount you can afford can allow you to save significantly on your monthly premium.

4. Vehicle Type

Some vehicles are just more expensive to provide insurance to than other vehicles. This usually has a lot to do with how expensive it is to fix up the vehicle if it gets into an accident and the rate of theft for that vehicle. Before purchasing a vehicle, always check with your insurance provider to see what it will cost to get insurance for the vehicle based on your current level of coverage.

There are many reasons why your premium may be higher than other people you know. You may have a poor driving record, live in a high-risk area, have a high deductible, or drive a vehicle that is expensive to insure. To lower your rates, improve your driving record, always check to see what a car will cost for insurance before buying it, go for a higher deductible, and consider the safety of where you choose to live. For more information, contact a car insurance company.