What makes my insurance so expensive?


Car insurance is expensive but so is driving without insurance. But let as set aside the driving without insurance thing and concentrate more on why is your car insurance expensive. There are factors that car insurance companies take on to consideration on how to weigh the amount of your car insurance.

Let us first discuss the commonly known factors affecting your car insurance price. Most commonly known is the driving history. Car insurance companies always ask you on what does your record show on how you behave on the road. Meaning how many traffic tickets have you collected and how many accidents have you been included in the past years. Remember that a good record makes a cheaper insurance. The next commonly known factor is about your car. Is your car newly bought, or is it old? Is it a sports car or a mini van? These things can affect your car insurance price, remember that newer and sports car makes a car insurance expensive because they are considered to attract more thieves and they are also considered fast and highly prone to accidents. While on the other hand older cars and mini vans which are considered to be much heavier are harder to drive recklessly so they cost cheaper. And the last commonly known factor is the age of the driver. Age affects the price of your car insurance, because insurance companies think that ages like 16 to 23 years old and 75 years old and above are much more prone to accidents. While ages 40 to 50 years old are considered much safer drivers and that costs cheaper car insurance.

The next group of factors is the not well known by some to affect the price of their insurance. First is where you live, companies think that cars parked at streets are more prone to theft. So you pay higher when you live in places that are high in crime rates compare to places with lower, and also in cities compared to the suburbs. And next is when you have let your car insurance lap at all, it does not only make your car insurance to cause higher, some car insurance company may not insure at all.

And the last group is the factor that is unfamiliar to most people. You may not think that your profession causes higher car insurance, but it does. Professions that cause a lot of stress and uses cell phones even while driving are high risks for car insurance companies. So business executives are higher risks compared to scientists and artists. Last factor but not the least is your credit score. And so if your credit score is good you’re safe, but if you have financial problems, better fix them as soon as possible.