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Six Reasons Why Your Car Insurance Is So High

Car problems

If you’re one of the many drivers out there wondering “why is my car insurance so high?”, we’ve got answers. Whether you’re a new or seasoned driver, your car insurance can climb for many different reasons. Here are six reasons why your car insurance might be higher than you’d like, and how you can try to find a more affordable insurance policy offering the same (or better) coverage. 

1. Location, location, location

Where you live – both your state and your zip code – has a big impact on car insurance rates. Each state has its own set of required insurance minimums that establish the minimum amount of insurance you have to pay for to drive legally in that state. Additionally, if you live in a zip code with a higher rate of vandalism, theft, traffic, and/or chance for an accident, high annual insurance rates could be the result of your location.

Read more about your state’s car insurance requirements

2. Your age 

In the world of auto insurance policies, there are mature drivers and new drivers. Because auto insurance policies and premiums are determined by how likely you are to get into an accident or file a claim, it makes sense that younger, less experienced drivers are subject to higher insurance premiums since they are viewed as more risky to insure. 
 
A new or young driver can expect their insurance premiums to decrease after age 25. Of course, there is the exception of older drivers. Any driver over 65 can expect to have their insurance premiums increase, as a result of their increased risk of causing an at-fault accident. 

Related: Cheap car insurance by age

3. Your driving record

When trying to answer “why is my car insurance so high?”, we recommend taking a look at your insurance points. These points are your insurance company’s way of justifying what to charge you for car insurance and are determined by whether you have a clean record, or if your driving record shows traffic or moving violations and at-fault accidents. 
 
The points added to your driving record vary based on the violation, and the number of points on your record will play a role in the cost of your insurance policy. For instance, in Massachusetts, any driver with 12 points over the course of five years is subject to an increased insurance rate, with different violations equaling a set number of points. Points systems vary from state to state. 

4. Your coverage limits

Car insurance coverage limits are another big reason why your insurance might be high. While minimum coverage limits vary from state to state, you as a driver also have the right to increase your coverage limits beyond these minimums. So, if you opt-in for the highest coverage limits available, your insurance policy is going to be more expensive than if you were to keep your limits lower or at the bare minimum.

5. The kind of car you drive

You may think driving a newer car with the safest bells and whistles would result in a lower insurance policy, but this is not always the case. Newer cars with the latest technology are more costly to repair. They may also be a bigger target for vehicle theft. In the event of an accident, your repair bill is likely going to be more expensive, which translates into higher insurance premiums.

6. How often you drive

The more you drive, the more at risk you are for being involved in an accident and thus filing a claim. If the amount you drive has decreased since you first began your policy, call your insurance company and let them know you are driving less. You may just see your policy premium drop!

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Compare quotes to pay less

One of the best ways to know you are getting the best price for your car insurance coverage is to compare personalized quotes from multiple insurance companies. Each company has their own formula for determining what you pay based on a number of factors that make up your driver profile. 

Start comparing quotes to find the cheapest auto insurance policy for you. 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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