Why is Auto Insurance So Expensive ? My Auto Insurance So High ?
Hi, This Howztuff.com. Today We are going to give you some valuable information about a question that most auto users have in their mind. That is ” Why is Auto Insurance So Expensive ? “.
Although these days it’s pretty easy to arrange your car insurance online, comparing quotes at the click of a button and paying by credit card for instant cover, one ever present difficulty still remains: the high cost of insurance policies. The fact that having car insurance in place is both a legal requirement and a sensible idea doesn’t detract from the annoyance of having to pay what seems to be an exorbitant sum, and most of us would jump at the chance of reducing the bill.
To do this we need to know what factors insurance companies use when deciding how much our premiums will be.
Why is Auto Insurance So Expensive ?
Perhaps the most important influence on the level of your premium is your own history as a driver. If you’ve a history of having accidents, then naturally you’re a higher risk to the insurer and so they’ll charge you more. If you’ve been convicted of a motoring offence such as speeding or driving while under the influence your insurance will cost you even more – especially if your licence was withdrawn, the things will become worse.
On the plus side, a history containing no black marks such as accidents will result in cheaper insurance as you build up a ‘no claims’ discount over the years.
Why is My Auto Insurance So High ?
The next most important factor is what kind of car you’re trying to insure. Naturally, more expensive cars will cost more to replace, and so the insurance will cost you more too. This isn’t the whole story though. Some other features such as engine size, the availability of cheap spares, and the difficulty of repair will have an influence too. Finally, some models of car are well known for being easier to break into. Some cars are famous for steal than others. The insurance companies are well aware of this and will adjust their quotes accordingly.
How you use your car will also affect the price you pay for cover. If you rarely drive and have a low annual mileage, then your premiums can be cut as you’re on the road for less time, and therefore have less chance of needing to make a claim. City drivers may also have to pay more compared to those who drive in quieter areas.
Where you keep your car is important too. If you have a secure parking area, preferably one that keeps your vehicle out of sight and under cover, then your risk is lowered, as will be your premiums. Cars that are regularly parked at the roadside are at a higher risk of being stolen. As well as they are more likely to be involved in collisions, and so will be more expensive to insure.
One Final Point
One final point to cover is that of how attractive your car is to thieves. And not just in the obvious way of how desirable your vehicle is! An expensive car with a good security system will be more of a hassle for criminals to profit from. So such cars are less likely to be stolen than a cheaper cars with little or no security. Also, a car featuring plenty of gadgets. Mostly, such as an expensive audio system or satellite navigation will attract greater interest from potential thieves.
So as we can see, car insurance is an expensive business. But it’s not always as simple as it seems. By looking at what insurers want in a ‘perfect’ customer, you may be able to drive down your premiums.