Reasons Your Car Insurance Bill is Steep
Cars can be your ticket to personal freedom, but that freedom definitely comes at a high cost. And that cost is not just what you hand over every month to satisfy your loan payment—there’s the cost of upkeep, gas, license plates, registration and, of course, insurance. Even if you are the best driver in the world, insurance is a required expense if you want to continue driving. And, even though you know there’s no getting around a car insurance bill, you might wonder (and, rightfully, so!): why does it have to cost so much?
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According to EverQuote.com writer Ashley Kane, your insurance rate can be affected by several factors including you just secured a brand new set of wheels.
“If your new car is much more expensive than your previous vehicle, it makes sense that your insurance may rise. Just be sure to mention all the high-end safety features the vehicle has to your insurer in order to save money,” advises Kane.
Not doing your shopping due diligence can affect your rates, too.
“It’s important to compare rates as your policy price may vary hundreds of dollars from one auto insurer to the next,” explains Kane, who adds that you should always ask your insurer about potential markdowns and discounts.
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Involvement in an accident or earning violations is definite causes of insurance rate hikes, and if you have fallen behind on your coverage, you could be paying more.
“If you’ve ever driven without car insurance or have had a gap in coverage, then your eventual renewal or new policy purchase may cost more,” reports Kane.
Going overboard on your insurance coverage, especially if you’re driving an older car, can cost you too.
Paying less frequently can actually add up to paying less, according to Kane.
“If you’re still paying month-to-month and are unhappy with the high rate of your car insurance, consider changing the way you pay. If you pay your policy upfront (usually by six months) or you use EFT (Electronic Funds Transfer) for bill pay, you can typically get a discount through your carrier,” reports Kane.
Inexperience as a driver, a low insurance deductible, and a poor credit score are also reasons why your car insurance seems so steep.
News Source: EverQuote