Why is My Car Insurance So High And How To Get A Better Rate

This is a common and suffocating question as well for the people who are paying a high amount of insurance premium. You pay an insurance premium which is high compared to your counterparts. But you want a lower premium rate. Generally, we don’t know the exact reason why is my car insurance so high?

Everyone like us tends to buy insurance coverage for our cars, life or anything else.  We want no future financial loss in case of an accident because an accident may crush our valuable and costly car within a second. The accident may occur at any moment in the blinks of our eyes. To avoid such situation, you should follow the cheap full coverage auto insurance. We don’t have any hand on this issue.

Why Insurance Required for my Car?

Buying insurance coverage means the transfer of possible risk related to the car, house, our life and anything else which has financial terms to the insurance company. They will compensate us in exchange of paying premium monthly or yearly due to loss caused by accident. It is also the most important decision to save us financially in the future.

Why is my car insurance cost is so high?

There are various factors about why is my car insurance so high. Insurance company always tend to cover any property or car at a lower rate if they find a lower risk of facing accident. However, we are going to discuss some reasons that cost you for paying the high insurance premium.

1. Inexperienced Driver

Most of the insurance company think getting coverage from Immature or young driver as one of the most possible risks for a car accident. The immature or young driver is more likely to face accident due to lack of long experience.  According to Insurance Institute for Highway safetyteenage drivers who are 16 to 19 years old may face accident 3 times more than the drivers who are 20 years and above. In the United States of America, the death and fatalities derived from a car accident are high compared to experienced drivers and they are not young or immature in the driving experience. This is a reason for why is my car insurance so high.

What to do to get a better rate on Inexperienced Driver :But it does not mean that as a young, you are not going to get a lower rate of the insurance premium. Young people who tend to drive and get lower insurance premium, they need to acquire expertise in driving. Also, there is various high rated training institute. They can make you experienced and provide you with a certificate of experience in the driving car. Surely insurance companies can make it as a lower risk of facing car accident.

2. Detached from Umbrella Policy

An umbrella policy is one of the cheapest and money-saving policy for the family who wants to get their coverage at a lower premium rate. This policy is a multi-vehicle or multi-property policy in an insurance company. Costco insurance provides this coverage like umbrella coverage for the family who wants their all cars under insurance coverage.

You may not pay cheap car insurance premium if you are detached from umbrella policy. Your parents are reaping the benefit of umbrella policy as they are paying less insurance premium. But you may see that your premium is a little bit high compared to them. First, at hand, you needed to understand from your parents if they had a policy on insurance coverage.

Buying insurance premium is really a tough and big decision. Every decision like financial terms should be inclusive with family members. If you include your car in their policy, you can get the benefit of the umbrella policy. It is the best advice for a person to discuss buying car insurance with family members.

3. Living in the city

It is commonly believed that the city has more traffic than rural areas. The city is packed with cars as people are earning more and buying cars. But this increasing numbers of the car in a city is also a possible reason to face accident. Where there is more accident, the insurance premium rate will inevitably be high. This is one of the most important factors for why is my car insurance so high.

Insurance company prefers to cover insurance at the lower rate of premium for the cars that mostly occupy the roads of the rural areas. They provide more facilities like opening insurance coverage related services if you are from rural areas. For example, Florida is a state where there is an increasing number of a car accident due to geographical or demographic location. For this, there are more car insurance agencies in this state and the rate of the insurance premium is much more compared to other states of the United States of America.

What to do to get a better rate : Truly if you are living in rural areas, you should put this information with your application form.

4. Driving History

Your driving history matters a lot to pay less car insurance premium. The insurance company is more likely to keep you under a watch about how you are driving your car. If they find that you are the desperate driver, you are likely to pay high insurance premium. More importantly, you may have some records of a not fatal accident. If the insurance company finds something like this, they will adjust risks by getting your car under insurance coverage at a high rate of the car insurance premium.

Driving history does not mean that you are violating rules and regulation. Just like you are not buying tickets in the parking area. But this driving history is commonly explaining that you are not high-risk drivers.

What to do to get a better rate : You are sure to pay less rate of car insurance premium if you have a very fine record of driving. Here you are less likely to file a claim in case of an accident. So when you are going to buy a car insurance premium, you need to prepare a statement of a very fine record of driving. This will surely make you pay less premium rate.

5. Past Insurance Claim Record

When you have insurance coverage and file a claim due to the accident, there may be so many questions and wrong procedure to proceed with your insurance claim. It may also cause to pay a high insurance premium in the future. Additionally, no insurance company will be willing to go insurance with you. The fact may also be your papers were wrong or you are not on time to submit your related papers to make sure your insurance claim is going to be recovered within a short time.

What to do to get a better rate : So an insurance company like every business organization tend to establish a trusted and long term business relation. You may also be a trusted and valuable partner with the insurance company. This relation may bring benefit to your future insurance coverage which may be to cover your valuable car. At least, exact papers and right procedure of proceeding any insurance related process may be your good practice.

6. Low Credit Score

Bad credit may displace a good relationship with an insurance company. Insurance company always want a driver with a strong credit rating. A good financial transaction also signifies how much or less rate the insurance company is offering you. You may get a lower amount of insurance premium when your credit score is strong enough to convince the insurance company. They will consider you that you have the capability of paying a premium on time and without any hassle.

Bad credit is something that you are not liable due to different realities. Additionally, many of us don’t have a good record of financial transaction like on time payment against the loan amount. When financial flow does not work according to your requirement. Bad credit is often seen among the middle-class family. They suffer from this problem when inflation is prevalent.

What to do to get a better rate : So before buying any insurance for car, you may check your credit score record. You also need to collect this type of documents to be most helpful and supporting to attach your premium buying papers. However, if the record is good enough, you should not miss the chance to represent it to the insurance company. This rating may vary states to states in America. For example, the Californian insurance agency does not take it into consideration.

7. Insurance Gap

You have a car and you need more importantly insurance coverage to transfer the risk of loss to the insurance company. Now you have bought insurance from an insurance company. But a few years later, you may think that you don’t need it due to no chance or possibility of an accident. It may be highly wrong if you cancel your insurance contract. This nature of the people is liable to increase the rate of the insurance premium. Frequent change of insurance company or irregularity are not things that may increase value to the insurance company. These issues may be reasons for why is my car insurance so high.

What to do to get a better rate? The rate of premium is not so high. You have the ability to pay this amount. As long as you own the car, you need to carry on the payment of the insurance company. Most of the insurance company prefer to provide less premium rate for those who are uninterrupted and continue paying the insurance premium for the long term. When you are going to buy another insurance coverage for your car or for your family members, you may buy a very lower amount of premium rate.

9. The Car You Drive

What you drive matters in terms of paying a high rate of premium. The rate of car insurance premium may be high if the car is more likely to face an accident or to be stolen. Insurance company always goes safe zone and minimize the rate. Your car should also be safe that is not vulnerable to facing accident. Additionally, there are different brands in the market. The insurance company also put importance on the basis of brands and reduce the rate of the insurance premium.

What to do to get a better rate : What brand you are driving does not matter. Now technological attachment in terms of safety and security is the most important thing to make your car safe. Your car may be fully equipped with technological features like anti-lock brakes, air bags, automatic seat belts, and anti-theft devices. These devices are not only making you stay away from anxiety but insurance company thinks that they are also safe from any loss or accidental loss. You may need to enclose those issues to the insurance company when you are buying insurance premium for your car.

10. Policy Option

There are various types of options to buy insurance coverage. There are different types of policy like the comprehensive policy, minimum liability policy, option for deductibles and many other things that impact on your payment. The policy you bought may be useless later and it happens most of the time when someone does not gather enough information before going to buy an insurance plan. Then those guys cancel policy option and get back to another policy which cost much in terms of car insurance premium payment.

What to do to get a better rate : Buying an insurance premium is a financial term and it should be taken into consideration to make sure you are not paying money for anything. You need to discuss it with your dear ones who can advise you with a better suggestion. Or you need to collect enough information to know which policy is fit for you. This little work can help you pay less after buying insurance coverage for your car.


When you have a car, you run miles after miles. But an accident may occur at any time. This one accident causes various issues like financial loss and personal injury. Insurance helps you avoid a financial loss as you are transferring this loss to an insurance company in exchange for premium payment.

Why is my car insurance so high is not just a question that may you spend money. Though you are not facing an accident, it is worth adding safety and security of your life. So payment of the right amount according to your earning and living cost is the main factor to consider. These issues explained above are highly responsible for why is my car insurance so high.