Thursday, November 7, 2019

Why Is Your Car Insurance Expensive?

For car owners, the worst and most dreaded part of driving a vehicle is having to insure it. Of course, you can’t afford to take the risk of driving without any insurance cover. The consequences could be devastating if you’re caught. However, when the average cost of car insurance is a little over $1,500 per year, it’s fair to say that the idea of not taking any cover can seem appealing. But, before you choose to ditch the insurance for you – which would be a terrible risk to take –, you might want to figure out what your costs are so high. 

You don’t compare insurers
First of all, you need to understand that not all insurers are the same. You might want insurers who rack up their premium for a specific audience group – such as young drivers – and others who take your credit score into consideration. Ultimately, the best way to get some play room in terms of costs is to request multiple car insurance quotes to compare companies. Each insurance company is tailored to a specific demographic. Therefore, it can be useful for you to run comparisons to identify the insurer who suits your needs. Additionally, it’s worth noting that staying loyal to one brand is no guarantee of low premium costs. 

You don’t keep the car in a secure location
Car insurers prefer drivers who keep their vehicles in a safe location. Indeed, keeping your car on the driveway or parking on the street is likely to increase the risk of the vehicle being stolen. If you’re not using the garage – and have decided to turn into a home gym for instance – you might want to consider options that can prevent thieves from accessing the vehicle. Leaving the car in the street makes it more vulnerable to intrusions. Ideally, if the car isn’t parked inside the garage, you could keep behind the gate, which can act as an additional layer of protection. 

You’re a lousy driver
Car insurance costs are affected by your driving history. If you have been involved in accidents and crashes, you’re likely to see your premiums increase. Unfortunately, the ever-evolving number of drivers and distractions on the road can affect your safety dramatically. Drivers are sitting at the steering wheel of heavy and powerful engines that can kill in a matter of seconds. However, instead of making us more attentive, it seems the increasing technology quality of our vehicles is making us more reckless. 

You’ve got a luxury vehicle
Lastly, not all vehicles have the same value. Some cars are reasonably cheap to insure while others come at a hefty price to pay. For instance, saving to buy a fancy car such as the latest Porsche Panamera could affect your premium costs. The Porsche costs almost $4,000 in insurance cover. On the other hand, if you opt for a more affordable vehicle, you might find your premiums divided by four or more. Luxury vehicles and high-performance models require a substantial budget. 

Is your car insurance more expensive than it should? The key to cutting down your costs lies in managing risks. Simple changes, such as keeping your vehicle in the garage overnight or improving your driving records could have positive consequences.