Why Is My Car Insurance So High?

Why did your car insurance rates jump up?

You didn’t get in any accidents, and you never filed a claim. How can your insurance carrier justify charging you more?

Let’s be honest; car insurance is a touchy topic. If you’re feeling frustrated about rising rates, you’re in the right place. This guide will explain what causes car insurance rates to go up and what you can do about it.

If you’re wondering, “why is my car insurance so high?” Read on to find out!

Where Do You Live?

What state do you currently reside in? Your state, city, and even street address impact your insurance premium.

Certain states have to pay higher rates for car insurance. Why? It has to do with the risk factors involved.

Insurance providers must deal with more significant risks if a state has more accidents or thefts. To mitigate the cost of all of that risk, providers have to raise their premiums.

Examples of high premiums places include busy cities like New York and Miami. In fact, New York is among the top 3 most expensive places to insure a car.

There’s still hope if you live in a state known for having high premiums. Your best bet will be to find an insurance broker who can shop your policy around with multiple providers.

By giving you access to dozens of providers, you’ll get a chance to look for the best rate. Just make sure that the insurance broker you choose has an excellent reputation. It would help if you only started a new insurance policy with a brand name company that will pay when you need it the most.

What Car Do You Have?

What type of car are you driving? Your vehicle’s make, model, and year impact your insurance premium.

Newer vehicles with a lot of safety features will qualify for special discounts. Often insurance providers will discount any alarm system, anti-lock brake features, and automatic lights.

On the other hand, sports cars have high insurance rates. If you’re driving a vehicle made for speed, you can expect to pay more for your car insurance.

Are you in the market to buy a new vehicle? Then you’re in luck! You can look for a car that you like, that’s also known for getting great Insurance rates.

You’ll need the vehicle year, make, and model to get accurate quotes. If you can obtain the vehicle’s VIN, that’ll also be helpful. The VIN is the vehicle identification number.

When shopping for a new car online, the dealers will usually post the VIN. Providing the VIN to an insurance agent means you’ll get precise quotes. Have them quote different vehicle models to see which one offers you the best premium.

How Much Do You Drive?

The amount you drive also affects auto insurance rates. If you’re putting a lot of miles on your vehicle, your insurance rates are likely high. The more you travel, the more risk the insurance provider takes on.

On average, most Americans drive around 13,500 miles a year. Typically, insurance providers will calculate your rate using the national average. However, what if you go a lot more?

When you’re putting 30,000, or more miles on your car each year, you’ll need to beef up your coverage. The more time you spend on the road, the higher the chances of an accident.

Did you used to drive a lot, but now you drive less? Maybe you had to go into the office before, but currently, you’re working remotely from home. Whatever the case may be, let your insurance provider know if you’re driving less.

Changing your vehicle from everyday use coverage to part-time coverage could save quite a bit of money! If any of the cars in your household are just for pleasure and not work, let your insurance company know that too.

Pleasure vehicles have lower rates since they spend less time on the road. If you’re worried about changing the status of a car, there’s no need to stress. You can change your vehicle from standard to pleasure and switch it back quickly.

Insurance companies understand that driving habits and styles change as your life changes. As long as you let your insurance provider know about the changes that could help you qualify for discounts, you’ll be putting yourself in a great position.

What Are Your Car Insurance Deductibles?

It’s easy to remember the cost of your car insurance premiums. However, remembering coverage details can be a little bit more tricky. Things can be especially tough if you’re entirely new to car insurance altogether.

To help simplify things, you’ll want to get a copy of your policy declaration. Your car insurance policy declaration will show your coverages and the deductible amounts.

Often car insurance companies will have user-friendly websites where you can find all of your policy information. It’s worth your time to take a moment to log into your account right now to find out what your deductibles are for comprehensive and collision coverage.

The deductibles are the amount you will have to pay out of pocket should an accident occur. Having a high deductible means you’ll have a low premium.

Alternatively, having a low deductible means you’ll have a much higher premium. You can either pay more now or later.

If you decide to go with the low deductible, you’ll be in a great position if a car accident happens. You won’t have to pay anything very much out of pocket before your coverages kick in.

However, what if you’re never in an accident? Then you’ll be paying high premium rates for a low deductible that you never even need.

We suggest finding an excellent middle ground. Think about your emergency savings and monthly budget. What type of deductible would you be able to afford?

What Is Your Driving Record Like?

Do you have a squeaky clean driving record? Or do you have a few traffic violations and tickets on your record?

If you’re driving history isn’t squeaky clean, you’re going to pay more for car insurance premiums. Unfortunately, there isn’t any way around it.

Insurance providers will see an imperfect driving history as a sign that you’re a higher risk. If they’re afraid that you might get another ticket or get in an accident, they will charge you more.

The good news is that you’re driving record isn’t a permanent thing. Certain infractions and violations will fall off your record over time. If it’s been 3 or more years since the incident, start getting quotes for new coverage.

Disclosing Accidents and Motor Vehicle Reports

If you’re shopping for a new policy, be smart. Always be honest with insurance agents, but don’t overshare.

Don’t disclose any accidents for years the insurance agent doesn’t ask about. If they ask about the last 3 years of driving, and you had an accident 4 years ago, don’t mention it.

Instead, only answer the question they’re asking. Otherwise, they might have to document the expired accident, even though it shouldn’t apply.

When the insurance agent runs your motor vehicle record, it won’t show any expired incidents. Even if it does offer an expired incident, the insurance company isn’t going to count it.

You could also look into taking a defensive driving course. Sometimes taking driving classes and providing the certificates to your insurance provider is a great way to cut your premium down. You’ll prove to your carrier that you’re a responsible driver who knows how to be safe.

Do You Have Uninsured Motorist?

Does your policy currently have uninsured motorist coverages? Uninsured motorist or underinsured motorist coverages are expensive. Adding these coverages to your policy can raise your premium hundreds of dollars a month.

However, just because an uninsured motorist is costly doesn’t mean you should cut it. If any of the drivers in your household were hit by an uninsured driver, you’d want to have these coverages in place.

The uninsured motor is coverages pay for bodily injury and property damage. Without the proper protection, you could wind up with many medical bills and no way to pay for them.

Stacking Coverages

Talk to your insurance provider today to find out if you’re uninsured motorist coverages are stacked. Stacking the coverages means that all vehicles pool together and the coverages combine.

Stacked uninsured motorist coverages are even more expensive than standard ones. Instead of completely cutting the coverages out of your policy, just have your agent unstack them.