Auto Insurance: Expectations vs. Reality

There are a lot of expectations when it comes to buying car insurance. Many of us want great rates and low cost, full coverage, and an easy sign-up process. Unfortunately, that is not always the case. If you feel like your insurance costs are too high or you are unsure how to compare insurance prices, keep reading for the truth about auto insurance.

Why is my car insurance so high?
While many insurance agencies promote affordable car insurance, reality is often far from expectations. You can get your auto insurance costs down, but you first have to understand why your car insurance is so high. If you are paying too much for car insurance, ask yourself the following questions.

  • Are you under 25? Auto insurance is typically higher for younger drivers. After you reach 25, you may notice your car insurance costs decrease.
  • Are you on your own insurance plan? If you move from your parents’ car insurance to your own insurance policy, you may not receive the same discounts.
  • Are you a guy? Men, especially younger men, tend to pay more for car insurance than women. This is likely due to statistics that show men are more likely to be in fatal car accidents than women.
  • Do you live in the city? Drivers in urban areas may pay more for car insurance because there are greater risks of accidents or theft.
  • Is your driving history spotty? If you have previous tickets, including texting while driving or DUIs, your car insurance rates may be higher.
  • Is your credit score low? Credit can impact your car insurance premiums. If your credit score is low, you may face higher auto insurance costs.
  • Do you have past insurance claims? Past claims can increase your car insurance premium. While smaller claims may not have a big impact, at-fault accidents can greatly raise your insurance costs.
  • Do you drive a luxury car? Some vehicles, like luxury cars or performance cars, cost more to insures. SUVs are among some of the cheapest cars to insures thanks to safety ratings and replacement or repair costs.

How to Reduce Auto Insurance Costs
If you feel like you are paying too much for auto insurance, you are not alone. High car insurance rates are a growing concern for many drivers across the U.S. While some of the issues above are not easily fixed, you can take steps to reduce your auto insurance costs.

  • Shop around for the best price and policy
  • Reevaluate your insurance policy when you turn 25
  • Choose liability insurance over full coverage if possible
  • Increase your deductible costs
  • Check insurance costs before buying a car
  • Bundle your insurance for home and auto to get a discount
  • Work on increasing your credit score
  • Research available discounts

Compare Auto Insurance Options
One of the best ways to keep car insurance costs low is to shop around and compare auto insurance options. Do not settle for the lowest price. Instead, compare your options to find the right balance of price and coverage. At a minimum, you should get three customized price quotes for your car insurance before making a decision. You can call car insurance companies to get a personalized quote or compare prices online.

Purchase Auto Insurance Online
Depending on the agency you choose, you can often purchase auto insurance online. Just make sure you have all relevant documents on hand and scanned copies ready to submit with your insurance paperwork. If you have any questions about your car insurance policy, don’t hesitate to pick up the phone and ask. BOLT Agents are also here to help, and you can get quick, side-by-side quotes from top rater carriers through our online interview.