Car insurance rates vary based on a number of factors. These include: your driving history, the vehicle you drive, your age, where you live, common claims near where you live, industry trends, and many other things. Rates also go up over time simply because cars are worth more and there are more risks, drivers on the road, claims, and distractions than ever.
If you’re wondering why car insurance rates are so high, it’s helpful to consider what you’re getting in return for your premium. For example, let’s say you pay $2000 a year for a full coverage policy. Then, you’re in a collision with resulting damages totaling more than $15,000. Your policy covers all of these damages except for the deductible.
When you compare your premium to the potential costs of an accident or another costly event, these prices don’t seem as high.
That being said, there are still many things you can do to help lower the cost of your insurance. First and foremost, maintaining a safe driving record for as long as possible.
Here are some other options:
Speaking to your insurance company about discounts you’re eligible for
Taking an accredited safe driving course
Paying annually rather than monthly
Shopping around for the same or better coverage at a better price