Ever wonder why your premium is higher than your friends or family? Why has it risen to a point where you may struggle to afford it? Find out the top 10 reasons that can answer your question; why is my auto insurance so high? You may be surprised with the reasons for high rates and solutions can be much simpler than you think. If you find you are relating to these 10 questions, it is definitely time to get vehicle insurance quotes and compare them.
- Why Is Insurance So Expensive for Teenage Drivers?
Besides exotic cars, car insurance for teenage drivers is the most expensive among class of drivers on the road today. Of course, this is because this class of drivers also has the highest rates of accidents and fatalities of any other group of drivers. Look for good GPA discounts, get on a family insurance plan if you want to save. Furthermore, don’t exacerbate the situation by buying one of the most expensive cars to insure, which could further double the premium.
If you are looking for cheap auto insurance, avoiding claims is a sure-fire way to do so. Claims often result in premium increases, especially for accidents in tort law states where you were found at fault for violations such as speeding, aggressive driving or careless driving. Even a minor accident claim can cause around thirty percent rate increase. You may want to consider making a claim when you have a minor, containable damage to your automobile or pay it out of your pocket.
- I Only Missed a Few Payments?
You may have realized that missing a few payments to your insurer may not immediately cause your rates to rise. Yet if you miss more than one or two in a row, the insurer can terminate or cancel auto insurance. When you attempt to get insurance again, the premium will generally be much more than your previous policy because of the payment risk. Insurers don’t like to be messed around when it comes to payments and can find ways to get back at you.
- Why is the City Car Insurance More Expensive?
If you lived in a rural county town where the population is low and traffic congestion was not an issue, and then moved to a large metropolis with congestion, you may have realized an insurance increase. Congestion and traffic volumes of large cities cause more accidents and auto theft and crime tend to be higher. City auto insurance rates often reflect these risk factors with higher premiums. Check that post to see how you can reduce the cost in a metro area.
- Why is My WRX’s Insurance so High?
If you have taken a normal compact or sedan and put in high-end racing parts, custom equipment and fabricated parts, it is much more likely to increase the cost of your insurance. These extra parts are much more expensive than original manufacturer parts and cause a spike in premium costs. You should always check beforehand how modifications would affect your quotes.
- How Much Does Insurance Go up after a Ticket?
Often drivers think just because they never had a major moving violation that their insurance will not go up. Yet, many small infractions can often warn insurers about potential aggressive driving behavior that could lead to more infractions and increased risk. Even multiple small speeding tickets can increase your insurance. If you ever ask how much does my insurance go up after a ticket you can find out by reading the post. By the way, the answer is no, just in case you ask do parking tickets affect insurance.
- Never Paid This High Insurance in 50 Years of Driving?
In that case you may be asking why do auto insurance premiums increase all of sudden. If you have recently had your 70th birthday, often you will notice a premium increase. Studies show that those over 70 years old are the second most dangerous driver type next to teenagers. This increased risk of accident or claims often results in higher prices for seniors. No matter if the problem is being young or old, finding cheap auto insurance companies for your type of drivers can help you reduce the premium.
- The Worst Flood Season on Record is Not My Fault?
Unfortunately, there are a number of natural disasters that may affect insurance rates in your specific location. These can range from tornadoes to hurricanes to flooding. If there is a massive up-tick in claims due to natural disasters, often insurers must recoup losses through increased premiums. If you know your region is prone to such weather conditions that would answer your question of why is car insurance so expensive.
- How Much Does Insurance Go up after a DUI?
Driving under the influence of alcohol over the federal mandated limit of 0.08% will automatically raise premiums in every state and location if you are charged with a DUI. These raises differ greatly depending on your state. Other major infractions such as accidents causing death, disfigurement or street-racing may all come with significant premium increases as well. In some cases you may lose your driving license and insurance coverage.
- Why Do I Pay for Crime?
Unfortunately, if you buy a car on the top 10 most stolen cars national or state lists or move to a high crime neighborhood, your automobile insurance premium may reflect these changes. Insurance protects you against the risk of these events. If you increase your exposure to these risks insurers will need to compensate for the increased risk with an increased premium.
No matter what the reason is for the rate rise, you will want to get a second and third opinion on your car insurance rates at a minimum. Comparison shopping using an online quoting tool such as the one available at CheapAutoInsurance.net will help you combat these rising costs by seeing which insurer has the most competitive rate. So, there are ways of mitigating the increased vehicle insurance costs. This website has a few articles about saving money on insurance and how to check what discounts you can get.