Last Updated on August 1, 2023 by Ali

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WHY CAR INSURANCE IS SO EXPENSIVE?: There are so many reasons that car insurance is over expensive. It includes your age, driving record, credit history, what car you drive, and where you live. Owning a car is still considered a luxury. Often the challenging aspects of owning a vehicle extend beyond the initial purchase. Maintenance, repairs, and the seemingly endless rise in the cost of gasoline make owning a vehicle a potentially expensive venture. Then most importantly you have the price of its insurance as well. One of the other reasons prices are so high is that modern vehicles have become extremely expensive to repair. Some of the other factors raising your car insurance are totally out of your control. Others are in your power to improve.  We will discuss the most important reasons why car insurance is so expensive.



insurance rates are dramatically among insurance companies. And if you’re buying your policy from an expensive insurer, you could be paying much more than you need to be. Car insurance rates vary between carriers because each calculates premiums differently.


States follow different regulations when setting insurance premiums. These measures can affect the overall cost of insurance in the state. For example, most have different rates for male and female drivers. Some states such as California, Hawaii, and Pennsylvania, do not allow this practice.


Your age really matters because most providers consider inexperienced drivers to be riskier to insure. Premiums tend to be higher for people younger than 25. Rates tend to increase for drivers 65 and older, too.


This is a big one. Insurance companies look closely at your driving history. And if they see speeding tickets, fault accidents, or other traffic and moving violations, they’ll get flagged as a high-risk driver and in return car insurance providers normally charge lower rates to drivers with clean records than those with violations.


Having poor credit scores in costly car insurance rates is also one of the most prominent reasons why car insurance is so expensive. For example, if you live in Connecticut, you’ll pay an average of $1,511 annually if you have poor credit standing and in comparison, a driver with a good credit record only pays $1,442 per year. However, keep in mind that some states don’t allow carriers to use credit scores to determine auto insurance premiums. In general, poor credit could hurt your car insurance premiums.


The type of car you drive has an important bearing on your car insurance rates. New cars have much more insurance rated as compared to the old ones. If your car is expensive more than enough to repair or replace consequently, you will pay higher premiums. The value of your car plays a role in your insurance costs. Possible costs of repairs, the likelihood of theft, and engine size when setting rates. Because of this, electric cars, sports cars, and high-value cars tend to be more expensive to insure. Moreover, when it comes to comprehensive coverage, some cars are stolen more frequently than others, so you might pay higher rates if you drive one of these.


There is a chance your car insurance rates are higher because you are paying a full coverage policy or other types of coverage that you don’t need to pay at all. Here are a couple of ways you might be overinsured.


Reducing your coverage is a delicate decision because while it can save money in the short term, it could leave you vulnerable to huge losses in the case of an accident.


If you feel that your car insurance is too expensive to afford, you can lower your premium in many ways. The most efficient way to get long-term and possibly more significant savings involves maintaining a clean record, improving your credit scores, and purchasing policies with lower limits that can score you cheaper rates in a short time frame. That’s the minimal effort you can do.

  1.  KEEP A CLEAN DRIVING RECORD AND CREDIT SCORE. Insurance companies love safe drivers. The longer you can go without accidents, speeding tickets, and especially your car insurance premiums will be over time. Insurance companies will have more confidence in your financial reliability.
  2. Take a defensive driving course. If you have poor driving history you can still show car insurance companies that you’re committed to being enough good driver. And you can be a safer driver in the future. One of the most effective ways to do this is to ask your insurance companies about the defensive driving courses that will help you to be a good driver as soon as possible.
  3.  PAY UP FRONT AND GO PAPERLESS. Paying the bill for your whole policy term up front instead of monthly and signing up for paperless billing will typically earn you a discount from most insurance companies.
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Mansoor Ali, a Feature Writer, embarked on his journey five years ago with, fueled by his enthusiasm for cars. Starting as an eager journalist, he quickly became a seasoned professional, expanding his expertise to cover both bikes and cars. (Full Bio)