Why is Car Insurance so Expensive?

Why is your auto insurance so expensive? The cost of auto insurance is rising nationally and is a constant concern. If so, you should continue on for additional information about auto insurance rates; otherwise, stop reading.

Your pricey auto insurance is caused by a number of variables. Thus, the question cannot be answered directly. Certain factors—like a speeding ticket—may be readily apparent, while others—like your ZIP code or marital status—may be less so.

Understanding the reason why your car insurance is expensive will equip you with the information you need when searching for car insurance with lower costs.

Why is Car Insurance so Expensive?

There are several likely reasons why car insurance is expensive. It could be your state of residence, age, or gender, below are some listed:

Personal Factors

there are some personal reasons why your car insurance may be quite expensive. Some of them are listed below:


a personal factor like your age can influence the price of your car insurance. Young drivers from the age of 18-25 will usually get insurance at a very high rate this is because they are inexperienced.

Inexperienced drivers from research are more likely to get into fatal accidents than older drivers with experience.

Due to the above, insurance companies will usually charge high rates when the driver is young and inexperienced.


a personal factor like your gender can influence the price of your car insurance this is because men are charged higher than women.

Men are charged higher than women because men are more likely to engage in rough and risky driving behaviors.

However, you can escape this expensive insurance by gender if you reside in certain states as Insurers in states like California, Hawaii, Massachusetts, Michigan, Pennsylvania, North Carolina, and Montana are not allowed to charge insurance based on gender.

Marital Status:

a personal factor like your marital status can influence the price of your car insurance as most big car insurance companies give lower insurance rates to married drivers.

Drivers who are single, separated, widowed, or divorced pay a lot more to insure their cars this is because married drivers have good credit scores making them pay less.


a personal factor like your educational status can influence the price of your car insurance this is because insurers believe highly educated people tend to have fewer claims making them less expensive to insure.

This practice is gradually fading away but it is still in existence in most states.


another personal factor that can greatly increase the price of your insurance is your location. Rates increase significantly by Zip code and neighborhood.

If your location is prone to severe weather attacks such as hail or flooding, this can greatly increase the price of your insurance.

Living in a rural or urban area is also a great contributor to your insurance price, especially for those living in an urban area as the risk of accidents, theft, and vandalism is greater in the city.


another personal factor to your insurance price is the work you do, drivers with certain low jobs will have to pay higher insurance prices because they are most likely to file more insurance claims.

This practice is gradually fading away and has been considered banned in some states.

Credit history:

your credit score can affect the price you pay for car insurance; this is because it can be used to determine your potential risk.

Car insurance companies believe that those with bad credit are more prone to filing claims and so they pay more. Those with good credits pay less, however, this practice is prohibited in states like California, Massachusetts, Hawaii, and Michigan.

Home Ownership:

homeowners tend to pay less on their car insurance, those who do not own a home have to pay more to insure their cars.

Homeowners whose homes are insured by the auto insurance company for their cars also get to have a massive discount on car insurance.

Driving Factors

Some driving factors influence the price you pay to insure your car which includes your driving records and others. some of them are listed below:

Driving record:

Your record as a driver will be put into consideration before your car is insured. If you have a bad driving record which includes traffic tickets, rules violations, and at-fault accidents then you are more likely to pay high insurance rates.

If your driving record is clean and void of violations and at-fault accidents. You can pay for insurance for your car with a small amount of money.

Some car insurance companies are more forgiving than others. You can find a company with cheap insurance rates for violators and drivers with bad driving records.


Low mileage drivers get cheap car insurance because they spend less time on the road and thus have fewer opportunities for an accident.

Car Storage:

Drivers who have a garage pay lower insurance rates this is because cars parked in garages are safer from theft, vandalism, and other accidents than cars left on the streets.

Driving Experience:

drivers with long-term driving experience get car insurance at a cheaper rate than those who are inexperienced. Inexperienced drivers are more accident-prone and so have more expensive car insurance prices.

Vehicle Factors

Your choice of vehicle as a driver can influence your car insurance price. Below are some of the factors surrounding your vehicle that can influence your insurance price.

Car Model:

the car insurance you pay on cars varies from car to car. Your insurance company may have experienced drivers who have your exact kind of car and use the knowledge of your car type to charge you for insurance.

Insurance companies consider the risks involved in a car such as car thieves, repair costs, and others. Speeding cars and even electric cars also attract very high insurance prices.

Popular cars like the Honda CR-V, Jeep Wrangler Sport, and Subaru Crosstrek are the cheapest cars to insure, unlike expensive cars.

Trim Level:

Cars with extra features such as audio, cameras, and lane sensors cost more to repair and thus cost more to insure.

Vehicles with higher trim levels raise the bar to their car insurance prices.

Safety Features:

In the event of an accident, cars equipped with safety measures are more expensive to replace and require more repairs. The cost of auto insurance is considerable for these vehicles.

Car Insurance Choice

The choice you make when you are car insurance shopping can also increase the price you pay to insure your car, below are some examples.

Insurance company:

Your choice of auto insurance provider may have an impact on your final cost because certain providers charge more than others.

Insurance Lapses:

If your insurance claim is accepted, your charge will go up if you don’t pay it. Select the coverage you can afford and make regular bill payments to be on the safe side.

Insurance Coverage Selected:

the insurance coverage you choose determines the price you pay for insurance. The price for full coverage differs from the price for collision coverage. Do your research and choose the coverage you can afford.

Insurance deductible amount:

the coverage you choose will have an amount of deductible attached to it. Ensure you choose a deductible you can afford to pay if there is an accident. If otherwise, you may be sued when you cannot afford it.

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