8 Elements That Can Make Your Car Insurance Rates Go Through the Roof


Most people who own a car and count on limited financial possibilities do everything in their power to save big on car insurance. Nevertheless, in some cases it seems that no matter how hard they try, they inevitably fail to attain their goal. Why? The answer is simple: there are certain elements that raise the cost of your auto insurance. Looking for more info on this matter? If so, just keep reading to discover 8 main elements that make your car insurance rates go through the roof.

How Insurers Manage to Make a Profit

To understand the factors that are responsible for the extra amount of money that you have to spend on your car insurance, you have to understand how insurers manage to make a profit. They basically increase their profit margins when they insure people who do not get involved in traffic accidents and, therefore, do not make any claims. They obviously record losses when they insure drivers who, for some reason or another, have a lot of accidents.

All the elements listed below increase the likelihood that you, the proud beneficiary of a car insurance policy, may record losses in a traffic accident, making your insurer lose money. To protect their interest and compensate for this elevated likelihood of making a big payout, insurers make you take more money out of your pockets.

8 Factors That Are Responsible for Increased Car Insurance Rates

1)    Buying and Owning a Shiny, Brand New Vehicle

Already looking for car insurance quotes? In this case, if you are getting ready to purchase a new car, you should be prepared to handle inflated car insurance rates. A new car is always considered an extremely valuable asset that would cost more to fix or replace, compared to an older model. Insurers are fully aware of this fact and don’t hesitate to charge you more, in the form of raised insurance premiums.This is precisely why it is extremely important to think twice before buying your next car.  Studies show that sturdy models like trucks, SUVs and minivans are the most convenient options at hand, because they are associated with the lowest car insurance quotes.

Also, most people erroneously think that higher premiums are linked only to shiny, sports cars carrying huge price tags. In reality, even some options suitable for people with average financial means, like a new Honda Civic for instance, could make you spend more on car insurance. This example has nothing to do with the car’s make and model. According to recent studies, Honda Civic is known one of America’s most stolen car models; plus, it is usually driven by childless, young drivers who are much more likely to get involved in traffic accidents.

2)    Marital Status

You may be wondering: what does the marital status have to do with the value of the insurance premium? Insurers tend to think that drivers who don’t have a family are less prudent in traffic; therefore married couples (preferably the ones with children) are considered the perfect candidates, while childless, young drivers (under 26) are included in the high-risk category and end up paying more money than the rest.

3)    Age

Age is just a number, but not when it comes to calculating your insurance rate. Insurance companies have reasons to believe that young, inexperienced drivers are more likely to have an accident and file an auto insurance claim.

4)    Opting for a Longer Commute

Insurers would do everything it takes to protect their interest. This involves raising your insurance premium if you suddenly decide to opt for longer commutes. Apart from the fact that they require a lot of time and money, increased commutes also affect your car insurance rate. Since you spend more time driving your car from point A to point B on a daily basis, the risk of getting involved in a traffic accident is greater.

5)    Relocating

Thinking about relocating and embracing the big city life? In this case, be prepared to spend more money on insurance premiums. Why? Insurers know how to minimize their losses and are aware of the fact that a significant percentage of accidents take place in crowded urban areas. Fewer incidents are recorded in rural areas. So yes, your location does influence the value of your car insurance quote.

6)    Gender

It’s no secret that insurance companies enable women to spend less on car insurance premiums, while men are forced to pay more. While this fact may seem like an intolerable injustice, it actually has a reasonable explanation: men are considered more aggressive drivers, who are more likely to cause accidents. On the other hand, women tend to be more prudent, and thus less likely to make insurers lose money.

7)    The Decision to Ditch Car Insurance to Save Some Cash

Numerous people who are struggling to overcome financial difficulties choose to ditch their car insurance. Think twice before going down this path to save some cash. Those who follow this approach end up paying raised insurance premiums.

8)    Traffic Violations

Last, but definitely not least, traffic violations are also responsible for bigger insurance premiums. Whether you cause an accident or get more than a few tickets, your insurance company will turn this against you and use it to obtain a bigger profit. All insurers scan their old and new clients periodically, to detect traffic violations. Once they find what they are looking for, they do not hesitate to raise your insurance premium.

Bottom line: These are the most common factors that could force you to spend more money on car insurance. To avoid an increase that could overbalance your monthly budget, don’t hesitate to ditch some old habits and think twice before making important decisions (like relocating or buying a new car). Other than that, if you want to get the best car insurance quotes and save more than a few dollars in the process, just rely on InsuranceQuoteDepot.com to compare rates the easy way and make a smart choice.


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