Have you noticed that you are being charged high premiums for car insurance while your neighbors are getting better rates? This is not always because you have dings on your driving record, either. If you do have a poor driving record, then that could be the reason, but if you don’t there could be other reasons why you are still struggling with high rates and paying too much to insure your car. Below are 5 reasons why you might be paying too much for car insurance.
- You Selected a Low Deductible
If you choose an insurance policy with a low deductible, you might feel you are making out. This way, you won’t have to pay too much out-of-pocket if you do get into an accident. However, this results in you paying higher premium rates overall. And, the lower your deductible is, the higher your payments will be. So, you might want to reconsider that low deductible if you find you are struggling to make your monthly payments.
- The Type of Car You Own Rates Poor in Crash Studies
If you bought a car that has been proven to not perform well in safety studies for car crashes, meaning it suffers more damage than other types of cars in a crash, your rates can skyrocket. This is because your insurance company feels your car is a safety risk.
- Your Driving Record is Poor
Your driving record can impact your insurance premiums tremendously. So, if you have been racking up those parking or speeding tickets, have been getting into too many accidents and just plain have a poor driving record, expect to pay higher premiums. You might want to start obey the speed limits and traffic laws if you wish to reduce your rates. And be patient, since it can take up to 5 years to set your record straight.
- You Make Too Many Claims
Sure, you have insurance in place so you can make claims; however, if you go overboard on this and file a claim for every ding or small amount of damage you get on your car, it’s going to jack up your rates. Insurance is put in place to save you from significant financial loss, not to polish up your bumper.
- You have a Teenage Driver
This might seem unfair to you, but having teenage drivers on your insurance can increase your premiums. This is because teen drivers have less experience driving which leads to insurance companies seeing them as a higher risk. Unfortunately, there is not much you can do until your teen is older and can pay for their own car insurance.