What Is My Neighbor Paying For Their: 2016 JEEP COMPASS

Car Insurance For New Drivers
23, Male, Colorado Springs, Colorado 80905
Year/Make Model: 2016 JEEP COMPASS
Ownership Status: Owned
Discount: Continuous Insurance Discount – Silver | Paperless
Screenshot 2023 04 21 203823
Selected Coverages With Carrier: Progressive
Bodily Injury Liability: $25,000 each person,$50,000 each accident
Property Damage Liability: $25,000 each person
Uninsured Motorist: No Coverage
Comprehensive: $2,000 deductible
Collision: $2,000 deductible
Medical Payments: $5,000 each person
Rental Reimbursement: $40 each day,maximum 30 days
Roadside Assistance: No Coverage

What makes car insurance so expensive

Car insurance can be expensive due to several factors, including:

  1. Risk Assessment: Car insurance premiums are typically based on the risk associated with the insured vehicle and the driver. Factors such as the age, gender, and driving history of the driver, as well as the make, model, and age of the vehicle, can impact the risk assessment. For example, younger drivers or drivers with a history of accidents or traffic violations may face higher premiums due to the increased likelihood of filing claims.
  2. Claims Frequency and Severity: Car insurance premiums are influenced by the frequency and severity of potential claims. If the frequency of car accidents or thefts is high, or if the potential costs of repairs or replacements are significant, insurers may increase premiums to cover those potential costs. Additionally, the rising costs of medical treatments and vehicle repairs can also impact car insurance premiums.
  3. Geographic Location: The location where the insured vehicle is primarily used can affect car insurance premiums. Areas with higher crime rates, greater congestion, or a history of severe weather events may have higher premiums due to increased risk of theft, accidents, or damage.
  4. Coverage Levels and Deductibles: The level of coverage and deductibles selected by the policyholder can impact car insurance premiums. Higher coverage limits and lower deductibles typically result in higher premiums, as they increase the potential costs for the insurer in the event of a claim.
  5. Personal Factors: Personal factors of the insured driver, such as their credit history, occupation, and education level, can also impact car insurance premiums. Insurers may use these factors as proxies for risk assessment, with lower credit scores or certain occupations being associated with higher risks.
  6. Discounts and Special Coverages: Car insurance premiums may vary depending on the discounts or special coverages offered by insurers. For example, adding additional coverage options like comprehensive or collision coverage, or taking advantage of discounts for good driving records, multiple policies, or vehicle safety features, can impact premiums.
  7. Insurance Company Expenses: Insurance companies have operational expenses, such as staff salaries, administrative costs, and marketing expenses. These costs are factored into car insurance premiums to cover the costs of running the insurance company and generating a profit.
  8. Legal and Regulatory Requirements: Car insurance is subject to legal and regulatory requirements imposed by government bodies, such as minimum coverage limits or mandatory coverage types. Compliance with these requirements may impact insurance premiums.
  9. Fraud and Abuse: Similar to other types of insurance, car insurance can be impacted by fraud and abuse, such as staged accidents or false claims, which can result in increased costs for insurance companies. To mitigate these risks, insurers may increase premiums to cover potential losses from fraudulent activities.

Car insurance premiums are influenced by a combination of risk assessment, claims history, geographic location, coverage levels and deductibles, personal factors, discounts and special coverages, insurance company expenses, legal and regulatory requirements, profit margins, and fraud and abuse risks. These factors collectively contribute to the cost of car insurance and can make it expensive for policyholders.

Total 6 Month Premium:

Monthly Installments: $332.91


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