If you are paying an arm and a leg for your car insurance premiums every month, you probably feel very frustrated. Many people are in your situation. The truth is that a number of factors can determine the price of your car insurance, such as where you live and your credit history. Let's take a look at several reasons why your car insurance premiums are expensive:
You Have a Bad Driving Record
Whether it's due to having a lot of speeding tickets or causing an accident, having a poor driving record can cause your insurance premiums to go up. Your insurance company may consider you a high risk driver and increase your premiums to protect their bottom line. If you take a defensive driving course, you may be able to reduce points on your driving record.
Your insurance company may appreciate that you made an effort to become a safer driver and offer you a discount.
You Have a Long Commute to Work
If you drive far to work every day, your car insurance may be more expensive. This is because being on the road longer can increase your risk of getting into accidents. You may want to consider carpooling with your coworkers. Doing this may reduce your insurance premiums and wear and tear on your vehicle.
Raise Your Credit Score
A low credit score can negatively affect your life more than you think. You won't just have trouble qualifying for loans; you may also get charged more for car insurance. Insurance companies believe those with poor credit scores are more likely to make insurance claims. It is likely that you will have higher insurance premiums than someone with a high credit score.
To lower your car insurance premiums, do everything you can to raise your credit score. Pay all of your bills on time and pay more than the minimum on your credit card bills.
You Have a Teen Driver on Your Policy
Teen drivers don't have a lot of experience operating motor vehicle, so insurance companies consider them high risk. If there is a teen driver on your insurance policy, expect to get charged higher rates. One way to reduce the costs is to have the teen driver listed as an occasional driver rather than the principal driver.
Your insurance company may also give you a discount if your teen has good grades in school.
You Drive a Flashy Car
The type of car you drive can also have an effect on your car insurance premiums. For example, if you drive a fancy sports car, you may get charged higher premiums because this type of vehicle is more likely to get stolen. This type of vehicle might impress your friends, but it may not be worth the expensive insurance premiums that come with it. To save on insurance premiums, it is better to drive a more practical vehicle, like a mini-van.
You Live in a Big City
If you currently reside in a big city, you can expect higher car insurance premiums. There tends to be more traffic in bigger cities, increasing the risk of car accidents. Insurance companies know this and want to protect themselves. If you end up moving to a suburban area in the future, your insurance rates may go down.
As you can see, there are many things that can affect the price of your car insurance premiums. Once you determine why your premiums are so high, you can work to reduce them. Do not hesitate to schedule a meeting with your insurance agent to find out how you can lower your insurance rates. You can also visit websites like http://www.unitedsecurityagency.com.