Why Your Auto Insurance Rates Seem High

Why Your Auto Insurance Rates Seem High

Reasons why your car insurance premium is expensive.

One of the biggest deterrents of buying insurance of any type is the price tag. In the case of car insurance, drivers are required to carry at least a minimum level of coverage. However, people are still wary about paying the extra money. Due to a variety of factors, some drivers’ auto insurance continues to increase over time, raising concern over insurance costs. Check out a few reasons why your car insurance is through the roof.

You have a poor driving record.

If you have even a handful of accidents, you’re going to pay a higher premium. The same goes for traffic violations.

You have a history of claims.

Even if you’ve only had a couple of accidents, they will impact your overall premium. The good news is that the severity of the accident is taken into account. Someone who has had a couple of minor fender benders is a much lower risk than someone who has totaled three cars.

You have bad or no credit history.

Credit history is a factor taken into account when insurers are determining your premium. If you have no credit history or your credit report isn’t all that great, you’ll end up paying more for car insurance than someone who has a good, clean record. Insurance companies are looking at patterns of delinquency, liens against you, and taxes you’ve refused to pay.

You’ve moved.

There are certain parts of the country that charge a higher insurance premium. If you live or have recently moved to an area that has high rates of theft and vandalism, your premiums may increase.

Your mileage is high.

Someone who drives 30 miles in rush hour traffic twice a day, five days a week is a lot more likely to get into a car accident than someone who works from home. If your commute is long and you’re racking up a lot of miles, you may be paying a higher premium.

Keep your rates as affordable as possible by being a safe driver and review your coverage often! If you’re unsure what coverage is best for your needs, visit Gee Schussler Insurance for the right auto insurance for you!