Why Are My Insurance Rates so High?
There are many factors that go into your insurance premium. The heaviest impact is your age, driving history, driving experience, type of vehicle, and coverage requested. Other factors may include your gender, marital status, education, and whether or not you have had prior insurance. Good drivers are rewarded by paying less for car insurance because they are less likely to file a claim. Insurance companies don’t like drivers with tickets. Tickets deem you as a “high-risk driver”.
Why Are My Insurance Rates so High?
The first thing you need to do is identify the problem or likely problems. In this article, you will see a list of the top reasons your insurance is overpriced and what you can do about it. You can likely identify which of these or a combination of these are the culprit.
Problem 1: Your current Insurance carrier is not best suited for your specific situation and individual circumstance.
Solution: Shop around. Start with an independent agent that represents multiple companies. Then shop some captive agents that only represent one company.
Problem 2: Poor driving record.
Solution: Do not give them a reason to issue you a citation. Drive slower, Don’t tailgate, your pocket book will thank you.
3. Problem: Bad Credit.
Solution: You may be wondering, “What does credit have to do with car insurance rates?” Well, insurance is based on statistics. Statistics have proven that those who are responsible with paying their bills are more responsible in other areas of their life such as driving. Thus paying your bills on time will help lower your rates over time. The reverse snowball effect if you will. Insurance companies can and do predict very well the likelihood of an accident.
Why Are My Insurance Rates so High? 6 Reasons
1. Insurance rates are based on your zip code. If you live in an area with a higher population density, such as a city, your insurance rates are going to be higher than if you lived out in the country.
2. Driving record. Accidents and tickets affect your insurance premiums negatively in a huge way. Additionally, though, you are greatly rewarded when there are no car accidents or tickets in the past five years.
3. Age. The younger you are, the higher your insurance cost. The older you get, the more experience you have with driving, and the lower your rates go. Age is a major impact on the insurance rate. Depending on driving history, vehicle type, and other factors it is a possibility that rates decrease at the age of 25.
4. No proof of prior insurance. Proof of prior insurance discount is applied when someone has six months of continuous insurance without a gap just prior to the start of a new policy. Most people let their insurance lapse which will not allow the new carrier to apply that discount.
5. Full coverage versus just liability. When purchasing a new car, most likely you will need full coverage (comprehensive and collision) which will significantly impact your insurance premium.
6. Gender. Men at younger ages are statistically more likely to get into an accident than women. However, the tides will change around the late 40s when women’s insurance rates are likely to be higher than men’s.
What You Can Do to Lower Your Insurance Premium
In addition to the advice above, there are a few things you can do to lower your insurance premium. Try taking care of your credit, and also ask your insurance agent about discounts.
1. Adjust your Deductibles: Some insurance companies offer deductibles as high as $1500 for comprehensive and collision. The higher you set your deductible, the lower your monthly payments will be.
2. Individual Driving Programs: Progressive uses a program called Snap Shot, National General utilizes something called Dynamic Driver, and you may have heard of Travelers’ program called Intelli Drive. These programs monitor driving habits and offer up to 30% off the total premium if you have data to show your good driving habits.
3. Discounts: We can’t stress enough, ask your agent about potential discounts. Something as simple as going paperless for example can knock up to $50 off your entire premium. Take a look at the following discounts and see what you might qualify for:
| DISCOUNT OPPORTUNITIES |
|---|
| Paid in Full Discount |
| Multi-Policy |
| Association Membership |
| Prior Insurance |
| Years of Riding Experience |
| Education Discount |
| Continuous Insurance Discount |
| Operator’s Education Course |
| Operators Safety Course |
| Advanced Quote |
| Vehicle Usage & Mileage |
| Homeownership Discount |
| Paperless |
Ask about these on your next auto quote
Best Home and Auto Insurance Plans for Retirees
- Allstate – Retiree Home and Auto Bundle – Allstate offers discounts when retirees bundle their home and auto insurance, making it easier to manage both policies. Additional benefits include accident forgiveness and the option to customize coverage for high-value items. Text Us to explore bundling options for your retirement lifestyle.
- State Farm – Low-Mileage Auto Insurance – Retirees who drive less can benefit from State Farm’s low-mileage discount, which lowers premiums based on reduced driving habits. This plan is ideal for those who only use their car occasionally. Call us at 1.888.445.2793 to find out how much you could save with low-mileage auto insurance.
- Nationwide – Homeowners Insurance with Replacement Cost Coverage – Nationwide offers a retiree-friendly homeowners policy that includes guaranteed replacement cost coverage, ensuring your home can be rebuilt to its original state in the event of a disaster. This is especially beneficial for retirees who want to safeguard their primary residence.
- The Hartford – AARP Auto Insurance Program – The Hartford provides an exclusive auto insurance program for AARP members, offering benefits such as new car replacement, lifetime car repair assurance, and a 12-month rate lock. Retirees can enjoy peace of mind with these unique perks. Text Us to learn more about AARP auto insurance benefits.
- Liberty Mutual – Customized Home Insurance for Retirees – Liberty Mutual offers flexible home insurance policies that allow retirees to choose the coverage they need. Options include inflation protection and extended personal property coverage to safeguard valuables. Call us at 1.888.445.2793 for personalized home insurance quotes tailored to retirees.
- Progressive – Snapshot Program for Safe Driving Discounts – Progressive’s Snapshot program rewards retirees who practice safe driving habits. By tracking driving behavior, retirees can earn discounts that lower their auto insurance premiums, making it a great option for those who drive safely and infrequently.
- MetLife – Comprehensive Home and Auto Coverage – MetLife offers comprehensive home and auto insurance plans with benefits tailored to retirees, including identity theft protection and extended liability coverage. These features are designed to provide added security for those in their retirement years.
- USAA – Military Retiree Discounts – For retired military personnel, USAA provides exclusive home and auto insurance benefits, including discounts for bundling, flexible payment options, and coverage tailored to military families. Text Us to explore the benefits available for military retirees through USAA.
What We Do at A Plus Insurance
Homeowners, renters, and mobile home owners: make sure you have the protection you need.
Exclusive Home and Auto Insurance Discounts for 2024
Tips for Unlocking Exclusive Home and Auto Insurance Discounts in 2024
- Bundle Your Policies for a 2024 Discount: Combine home and auto insurance to save up to 25% this year. Call us at 1.888.445.2793 to learn more about bundled savings.
- Enroll in Automatic Payments for Savings: Many insurance companies offer discounts for setting up autopay. Text Us to find out if you’re eligible.
- Take Advantage of Early Renewal Discounts: Renew your policy early to lock in discounted rates for 2024. Call us at 1.888.445.2793 for renewal assistance.
- Qualify for a Good Credit Discount: A strong credit score can significantly reduce your premiums. Text Us to explore your options.
- Upgrade Your Home’s Security Features: Install security systems to qualify for home insurance discounts. Call us at 1.888.445.2793 for recommendations.
- Earn Low Mileage Discounts: If you drive less than 10,000 miles annually, you may qualify for special discounts. Text Us to check eligibility.
- Check for Loyalty Discounts in 2024: Long-term customers may be eligible for exclusive loyalty rewards. Call us at 1.888.445.2793 to verify your status.
- Complete a Defensive Driving Course: Save on auto insurance by taking a certified driving course. Text Us for approved programs.
- Ask About Discounts for Military Members: Active and retired military personnel often qualify for special rates. Call us at 1.888.445.2793 to find out more.
- Utilize 2024 New Homebuyer Discounts: First-time homebuyers can access exclusive savings on combined policies. Text Us to get started.
Frequently Asked Questions about High Insurance Rates
Q1: Why are my insurance rates so high?
Insurance rates can be affected by various factors, such as your driving history, the type of coverage you need, and your location. To get more specific information about your rates, please feel free to call us at 1.888.445.2793 and our experts can provide personalized assistance.
Q2: Can I lower my insurance rates?
Yes, there are ways to potentially lower your insurance rates. You can consider raising your deductible, bundling policies, or taking advantage of discounts. For personalized advice on reducing your rates, please give us a call at 1.888.445.2793.
Q3: What factors affect auto insurance rates the most?
The most influential factors on auto insurance rates typically include your driving record, the type of vehicle you drive, your location, and the coverage you select. For a detailed analysis of your insurance rates, don’t hesitate to reach out to us at 1.888.445.2793.
Last Updated on by Marlon Moss
