Most people have this question in their minds because the car insurance rates going high day by day. So Why Car Insurance So High? There are several factors Insurance Companies consider when stating a premium for Car Insurance. Most people are intending to switch car insurance because of this. And this article will give you all the facts for the high premium of a Car Insurance.
4 Factors Determine My Car Insurance Premium
1.Records of your driving
The Insurance Company will ask for your driving records. Such as your normal speed, speed rules violation reports and also accidents that have happened before.
2.The type of your car
The type of car also a considerable factor. Because the type of car will describe the safety and the speed of the car and if a car is having less safety, then the Insurance Company will take a high premium.
3.Where you live
The Car Insurance Company wants to know about the demographic factors. And then they analyze how your area got car accidents and how good the roads of your area and it can be affected by the premium of your Car Insurance.
4.Sex and Marital Status
This is an uncontrollable factor. But this factor also considers your Car Insurance Premium.
So these are the main factors for your question of ‘Why Car Insurance So High’?
Why Is My Car Insurance So High – Other Reasons
According to the above factors, you can get a high premium for your Car Insurance. If you are having a bad driving record such as a high rate of speed rules violations or previous accidents, then the Car Insurance Company has a high risk when giving Insurance coverage for you. So they are charging a high amount of premium from you to minimize their risk of giving Insurance.
And also if you using a less safe car, you have to pay a high amount for your Car Insurance because the risk factor is high. If you are living in a high population area or off-road area, the Insurance Company considers it as a risk factor and they will charge a high amount for the Insurance.
And your gender also matters here, if you are a guy and unmarried, you are considered as short ways and speedways seeker so if you are a young and unmarried boy you have to pay a high premium for your Car Insurance.
These are the main factors affecting the premium of Car Insurance. Instead of the above factors, the coverage you will ask for your policy will add more cost for the basic insurance premium.
And also if you have an Insurance history, it also a considerable factor. If you had a lapse insurance policy before this policy it will add more cost for the Car Insurance premium. Because the Insurance Company is taking a risk if they giving an Insurance policy for you. You can get the idea of building a premium for Car Insurance and get an answer for the most common question of “Why Is My Car Insurance So High”?