Why is my car insurance so high?

Many drivers dealing with expensive insurance wonder why their car insurance is so high. There are many reasons for this, including your age, driving record, location, credit history, car make, and other driving habits. However, you can cut down on your insurance rate by shopping around for the best deal.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent Brad Larsen

UPDATED: Mar 21, 2022

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Things to Know

  • Certain factors can make your car insurance more expensive than what it should be
  • You could slash your car insurance costs by 30% or more just by taking simple actions like taking a defensive driving course or letting your insurer track your driving
  • Shopping around for different car insurance quotes will also help you save on car insurance

If you wonder “Why is my insurance so high?” you are not alone. Car insurance companies look at a wide range of factors. From your driving record to where you live to driving habits, various details go into the pricing of a car insurance policy.

But this doesn’t mean you can never lower your insurance rate. In this article, we will explore the possible reasons behind your high insurance rate and tips to slash those rates. We can also help you to compare quotes and get a better price on your car insurance.

Why is my car insurance so expensive?

Your car insurance can increase for a variety of reasons. For example, your car insurance company might consider you a high-risk driver. As a result, your provider might charge more for car insurance because you may be more likely to make a claim.

Other reasons for high car insurance include your age and gender, where you live, the amount of coverage you have, the type of vehicle you own, and your credit score. 

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Ten Things That Can Cause Your Car Insurance to Rise

Are you constantly asking, “Why did my car insurance go up?” Car insurance companies base their rates on how likely they think a driver is to make a claim and how expensive that claim will be. So, due to a variety of factors, your insurer may raise your car insurance rate if it believes you’re likely to make a claim.Here are the 10 factors that impact your car insurance rate:

1 — Your Insurance Company

Insurance rates can vary significantly from company to company. So, depending on the insurance company you choose, you could be paying more or less than the national average. 

The best way to determine how much you can save on car insurance is to compare quotes from multiple insurance companies. 

2 Your Age and Gender

Younger drivers tend to pay more for car insurance than older drivers. This is because many younger drivers have limited driving history and experience. Therefore, they’re more likely to get into car accidents, which leads to insurance companies categorizing them as high-risk drivers. 

You may find this surprising, but your gender can also affect how much you pay for car insurance. Men tend to pay more for car insurance overall. This difference is most significant for teens. As drivers get older, the difference tends to even out. In fact, older women often pay slightly more than men of the same age.

3 — Your Location

Where you live is the one factor affecting your car insurance rate that’s often beyond your control (unless you move). Various factors play into your location that can affect insurance costs, including:

  • The history of accidents/claims in the area
  • Population density
  • Weather patterns
  • Crime rates

It’s a good thing to be aware of when you’re looking to move.

4 — Your Driving Record

It goes without saying that your driving history can either drive up or lower your car insurance costs. This includes any accidents, violations, and speeding tickets you’ve had in the past. Expect to pay more for car insurance if you have many negative items on your record.

5 — Your Claim History

The number of claims you filed in the past can also impact your car insurance rates. If you’ve been in multiple accidents in the past, expect higher rates.

6 — Your Coverage Limits

Your state sets a minimum amount of coverage you should have on your policy. The more your coverage limits exceed those minimums, the more expensive your insurance will be.

7 — How Often You Drive Your Car

The more you drive, the more wear and tear you’re putting on your vehicle. This also increases the likelihood of accidents. High mileage and usage can increase your insurance cost.

8 — The Type of Car You Drive

Certain car and truck models have much higher claims than others. This is because some cars are more likely to be stolen, while others are more prone to accidents.

9 — Your Credit Score

Some car insurance companies will charge more to insure your vehicle if you have patterns of delinquency or liens against you.

10 — Your History With Car Insurance

If an insurance provider notices a pattern of your vehicle having lapses of insurance, they’ll likely view you as risky. As a result, you might pay more.

How can I lower my car insurance rates?

There are various steps you can take to lower your car insurance rates. One of the best ways to make your car insurance more affordable is to change your driving practices. For example, you can reduce your mileage, take a defensive driving class, and/or use a safe driving app. 

You can slash your car insurance costs by 30% or more by:

  • Shopping around
  • Reviewing your deductibles
  • Bundling insurance policies
  • Driving a car with low repair costs
  • Boosting your credit

Make sure you take advantage of all of the options.

Five Tips to Improve Your Auto Coverage & Drive Down Your Costs

Let’s take a took at the top five tips to improve your auto insurance coverage while reducing your costs:

  • Reduce your coverage. Drop coverage you may not need on an older car or one you don’t drive much.
  • Get a higher deductible. The higher your deductibles are, the lower your monthly car insurance costs would be. 
  • Bundle your coverage. Insuring your home and car with the same company can reduce the cost of both significantly
  • Look for discounts. Insurance companies offer a lot of different ways to save money
  • Compare insurance costs before buying a policy. Don’t just go with the first car insurance company you get a quote for. Shop around, and compare to find the lowest rates.

Always be cautious about reducing coverage limits to save money. If you’re in an accident, it may cost you more in the long run.

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The Five Most Affordable Car Insurance Companies

The most affordable car insurance companies are:

  • USAA. Average monthly rate: $36
  • State Farm. Average monthly rate: $44
  • GEICO. Average monthly rate: $56
  • Progressive.  Average monthly rate: $74
  • Nationwide. Average monthly rate: $76

Of course, rates vary by the person, so the cheapest company for you may be any of the above, or none of them.

Why is my car insurance so high? The Bottom Line

As we discussed above, various factors drive your insurance rate up. However, you don’t have to be stuck with expensive car insurance forever. There are a lot of ways to save, including discounts, bundling, and shopping around to compare rates.

Compare Cheap Car Insurance Quotes

Compare quotes from the top car insurance companies and save

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