Answer To the Question of Why Is My Car Insurance So High
Though the car insurance is now mandatory for every driver of the USA, many people feel too burdened by the high premium they have to pay regularly, for maintaining their insurance policy. As accidents do not occur every day, lots of drivers have to go on paying this hefty amount, asking themselves that ‘why is my car insurance so high’. But as the rates of accidents and thefts are quite high on many US cities, the drivers are not allowed to go out on the roads, without buying car insurance for them.
Main reasons for the high car insurance costs
If the driver has past records of accidents or violations of traffic rules, his car insurance premium is sure to shot higher than others. Sometimes, the premium increases on renewal, if the driver faces with any accident and got tickets in the meantime. Hence, it is better for the drivers to get absolutely clean record and if any accident occurs due to the fault of any other car, the driver should get it recorded as a no-fault accident.
If the insurance company finds that any specific car model is recorded to have made more accidents in the past, that car model is sure to be insured with much higher premium. Therefore, some cars become more expensive to insure than others, due to the previous repairing records of the same model cars.
The people living in densely populated cities have to bear higher car insurance premiums than the ones who live in the scarcely populated suburb or rural areas. There are some areas marked as highly accident prone, the residents of which places are sure to suffer from higher auto insurance costs. The rate of car thefts and vandalism in a certain place also play a role in the rise of the insurance premium of the cars there.
If the insured person puts a large claim for any fault or no-fault accident of his car, his premium will rise on the renewal of the policy. So it is better to claim only as much required for amending the damage of the car and also the driver should make sure of the entry of ‘no-fault’ accidents in his driving record, to keep it clean.
In case of family car insurance, the inclusion of the young drivers may sometimes raise the insurance premium. Hence, it is better to show the young son or daughter as occasional drivers, while the mature people should be featured as the principal operators of the cars, to get moderate amount of auto insurance cost.
The insured person should not pass his car insurance to the younger generation, along with passing the legacy of the car; otherwise the premium is bound to shot up, due to the inclusion of the younger lot.
The driver may face higher risk premium in their auto insurance policy, if they drive regularly for long distances. So it is better to keep the actual figure of the distances travelled by the driver in a year, to keep the insurance cost at an optimum level.
The late payments of the premiums can also result in increase of the auto insurance premiums, at the time of the renewals.
Hence, it is better for the drivers to know the exact answers of their question ' why is my car insurance so high ’, which may help them in lowering their premiums to some extent.
We have additional information in this subject you may be interested in reading : How Much Is Car Insurance Per Month? and Better Decide Beforehand How Much Insurance Do I Need For My Car.