While auto insurance is mandatory just about everywhere in the world, it’s wise to have this coverage even if it isn’t compulsory in your region. However, car cover rates can differ dramatically, and premiums can be shockingly high for some.
With this, if your insurance premiums are substantial, we’ve listed the five most common explanations.
You Are A Young Driver
If you’re a young driver, it’s in your best interests to shop around for auto insurance quotes to find the most affordable, as young drivers are typically expected to pay a higher premium in general. This is because drivers under the age of 25 are statistically more likely to be involved in accidents.
Even so, there are ways to reduce insurance costs for young drivers. Beyond comparing quotes, Drivers ED courses can also reduce coverage costs.
You Have Poor Credit
Insurers will check your credit rating and history to determine reasonable rates. So, if you have poor credit, your insurance quotes will naturally be a lot higher.
The best approach here is to work at improving your credit score. A few ways of achieving a better credit score include paying accounts on time, saving money regularly, and managing credit well.
Your Deductible Is Low
The deductible cost, or excess, is the amount of money you will need to pay when making a claim against your auto insurance policy. With this, if your deductible is low, your premiums will automatically be higher. So, by increasing your deductible, you can effectively lower your premiums substantially.
You Have Claimed Before
If you have made claims against your auto insurance policy in the past, you probably noticed your premiums go up shortly after. Unfortunately, claiming from a policy increases your risk on paper, so your premiums rise.
The best way to avoid your premiums rising from this factor is to avoid claims where possible. Because safe driving and vehicle maintenance are both beneficial to you in other ways, it’s worthwhile to invest in these ways of reducing your chances of needing to claim from your auto insurance policy.
You Have A Vehicle That’s Expensive To Insure
It’s a lot cheaper to insure a Kia Picanto than a luxury Porche. This is because insurers need to ensure your premiums can cover payouts when you need them most, and some vehicles are far more expensive than others to maintain, repair, or replace.
If this is the case, you won’t be able to lower your premiums. However, you can still compare quotes to find the best deal for your vehicle model. You can check out these Youi Car Insurance Quotes for you to decide which car insurance is the best for your needs.
Other factors that can increase your premiums include having more coverage than you need, you have been driving without insurance previously, and often getting speeding fines and tickets.
While several differing factors raise premiums for car insurance, the best way to ensure you are not paying too much is to compare quotes and develop safe driving habits. In addition, prioritizing vehicle maintenance is also critical to keeping your premiums low.