You have answered all the questions and then the sinking feeling hits and you realize that you will be spending on the affordable car insurance. Getting an auto quote is more than you were hoping to pay is a downer. If you have been using the parent’s car insurance, and want to switch to buy your own coverage, you may be surprised to find out how much is the insurance costs.
What Can You Do?
First, you need to find out why the insurance cost is high and then you will come to know what options you have. Then you should learn how to find out the best car insurance rates whatever your circumstances might be. So, why not first find out why is car insurance so expensive?
Reasons for High Car Insurance Prices
Here are some of the main things that can affect car insurance rates. But you should bear in mind that there may not be any single factor behind it.
There is a long list of things which can influence the rates. Across the industry, the prices are rising and there may be some culprits.
First You Are Under the Age Of 25
Young drivers need to pay more for insurance and especially if you are a male driver. The average car insurance rates are high for the young drivers as the insurance car companies see them a big risk. The IIHS says that the drivers in the age bracket of 16-19 are far more likely to be in a fatal collision than the drivers over the age 20. When you reach the age above 25, things should be cheaper.
You Are Not Getting the Discounts as Your Parents
If you used to be on your parents’ auto policy, you will probably see higher rates if you go for own policy. It is because the discounts your parents were eligible might not apply to you on own. A multi-vehicle or multi-policy discount will surely save a lot of money. If you lose on them you will be paying a lot in the premiums.
You are a Male
If you are a young male, you may have to pay more for the insurance. Until the age of 21 years, the male drivers have to pay 20 percent more, but the picture is different for the drivers over 30. It has more to do with how risky insurance companies think male drivers are. The male drivers who are in the age bracket of 20 and 29 are more likely to be in the fatal accident.
You Are A City Dweller
The city you belong to impacts your rate and the urban areas have car insurance than the rural areas. If you live in an area where vehicle theft is high or there is a high rate of congestion, it could cost you more. With the zip code, the address impacts your insurance rate.
If you are looking for affordable car insurance, you need to keep these things in mind and you will surely be able to get it.