Car insurance premiums are at an all-time high all around the world. You would wonder that the premium should go down with the record number of sales. But, on the contrary, the premium has risen to such a level that there are many who cannot afford it anymore. Well, there are specific reasons for which you might have to pay higher premiums than your friends and family.
In the following post, we have listed the top five reasons to answer your query of why the high premiums? Let us have a look.
1. Your age is a factor
Car insurance for teenage drivers is high. This is since teenagers tend to be impatient, which leads to recklessness. The same goes for drivers over the age of 70-years. It has been scientifically proven that both teens and older drivers are a risk to themselves as well as to the existing traffic on the road.
2. Type of care
The second most crucial factor for the higher car insurance premium can be attributed to the choice of cars. A stock commuter car should have around an average insurance premium. But if you have installed after-market or racing automobile parts, then the insurance will go up. It is the same with the exotic and supercars. The math is simple; the more expensive your car is, the higher is the insurance premium.
3. Your location
Car insurance tends to be higher in urban areas when compared to rural areas. This is mainly because metropolitan areas have more traffic, leading to congestion and more chances of accidents. Due to higher risk factors, urban auto insurances tend to be higher than their rural counterparts.
4. The way you drive
Your driving habits affect your auto insurance premium. Even with a minor accident, you might have to fight the claim. If you have to pay for the damages, then the insurance will go up with the renewal quote. This is because, after one strike, you will be assessed as a risk. Keep in mind that a 30% increase is quite normal, even with a minor accident.
Keep in mind that routine traffic violations, as well as the innocent parking tickets, can accumulate and get used to judging against your favor. Your insurance might go up suddenly to the accumulation of penalties which will adjudge you as a driver with aggressive behavior problems. The same goes for DUI and other substance-induced violations and criminal activity.
5. Your local climate
Believe it or not, your area climate affects the insurance rates as well. Many parts of the world are routinely affected by inclement weather conditions that result in storms, heavy rains, and flooding. There are natural disasters like earthquakes, hurricanes, and tsunamis, as well. If you are a resident of a similar area, then you will have higher automobile insurance rates.
So, those are the factors that contribute to the ever-increasing auto insurance premiums. We hope the post sheds light on all your queries.
