One of the downsides to owning a car is the monthly insurance bills. Over time, these bills can cause significant financial hardship, especially if you don’t understand why the costs are rising.
If you’ve noticed your costs rising in the past year, you’re probably wondering why car insurance is so expensive. To help ease some of this frustration and help you bring down your costs, here is everything you need to know.
How Expensive Is Car Insurance?
The cost of car insurance depends on the individual driver. On average, car insurance costs about $140 per month or $1,674 per year.
Though a lot of factors affect these costs, the most expensive car insurance is Allstate and Amica. But, it’s not the same for everyone. The best way to get an accurate quote is to contact an insurance provider and discuss the best coverage for you.
How Age Plays a Role in the Cost
Age plays a significant role in car insurance costs. Young drivers must pay more in insurance than older drivers. This is because the younger and more inexperienced you are, the more likely it is that you’ll get in a crash.
As a young driver, you can cushion these costs by adding a parent to your policy, getting a black box policy, or buying temporary car insurance. You can also look into minimum auto coverage.
How Vehicles Play a Role in the Cost
The type of car you drive also affects your cost. Faster and more expensive cars have higher premiums than slower and older cars.
Cars built with lots of safety features will cost less. Newer cars tend to fit in this category.
How Driving History Plays a Role in the Cost
Your driving history impacts your car insurance significantly. For example, if you’ve been in multiple accidents recently, car insurance companies will consider you a riskier driver. This will make your monthly insurance costs spike.
If the police have also pulled you over, the insurance company will put points on your license. Unfortunately, these points drive up your costs.
The best way to avoid these costs is to always drive safely on the road.
How Location Plays a Role in the Cost
Car insurance costs differ depending on the state you live in. The most expensive car insurance states are Louisiana, Florida, and New York. The least expensive states are Maine, Ohio, and Idaho.
Your specific zip code can also alter the price. Location factors into the cost in several ways. This includes the amount of car theft in the area, the number of fraud claims in the area, and the number of estimated uninsured drivers in the area.
Now You Know Why Car Insurance Is So Expensive
Next time you’re asked by a family member why car insurance is so expensive, you can provide an accurate answer. As you can see, car insurance costs are affected by multiple factors.
If any of these factors have changed in the past year, your costs will likely go up. This is especially true if you’ve recently been involved in a car crash or if you have a new driver on your plan. More Info
By paying attention to these factors, you’ll be better prepared for rising costs, and you can budget appropriately. This will save you a huge headache down the line! Get more Info
And if you found this article helpful, don’t forget to check out the rest of our blog. We have a ton of other great articles related to cars that you’ll love!
Learn more about the factors that impacts directly on the prices of auto vehicles and their insurance services, on this website: www.carinsurancequotenw.info
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