Why You Can't Find Cheap Car Insurance

ByMike McTigue

Most American drivers are bewildered as to why affordable car insurance deals are so hard to find. All you want is the minimum legal coverage and you end up paying an arm and a leg. There are several reasons why you might be faced with astronomical premiums. Knowing how your rate is calculated can help you understand your situation and how to deal with it. In addition to these, knowing the following information might also be helpful.

1. Common reasons for high car insurance premiums

High risk drivers face the highest premiums and almost all insurance companies do not want to pay out. Due to this, if you pose the risk and there is a possibility that they might actually have to pay for a claim in the future, they would easily consider you as a high risk driver.

There are actually a lot of factors that could put you in the high risk category and you should know each of these. One of these factors is your age. Car insurance providers usually consider young people with no established a good driving record is considered as a high risk driver. In addition to this, a history of drinking and driving is probably the number one high risk factor, especially if you have caused an accident while under the influence. If your drunk driving has caused death, many states will ban you from driving, so never mind about insurance.

Given these facts, it is important to know how you are categorized.

2. Other reasons for expensive car insurance premiums

Sports cars, rare cars and classic cars are extremely desirable. If you own a car like this you are susceptible to theft and insurance companies are considering this as the basis for the insurance premiums that you would be paying. Although this is not reflected on your driving record, but this would probably put you in the high risk category simply because your car is highly desirable. Even several "average" cars fall into the desirability category due to their higher re-sale value and chopability.

3. Where you Live

Believe it or not, where you live and how many miles you drive per year also affect your premium. If you live in the boondocks and only drive to town once a month, your chances of having an accident are slim. Therefore, your premiums will be low. If you live in a big city and drive to work every day, your risk of having an accident are much higher. Thus, your premiums will be higher.

So, in order to get the best insurance premium try to find out where you stand. Talk to your insurance agent and try to get the best insurance coverage for the lowest price. If you do have a blemished record, make sure to improve your driving skills. If you are a young driver, bite the bullet, keep your record clean and you will get better rates soon.

Mike McTigue is an Automotive Journalist and former Car Dealer with a unique insight into the auto financing industry, and special financing.

Our readers get low Auto Insurance Quotes and save hundreds.

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Mike McTigue

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MLA Style Citation:
McTigue, Mike".".27 Feb. 2012EzineArticles.com.28 Feb. 2012 .APA Style Citation:
McTigue, M. (2012, February 27). . Retrieved February 28, 2012, from http://ezinearticles.com/?Why-­You-­Cant-­Find-­Cheap-­Car-­Insurance&id=6907830Chicago Style Citation:
McTigue, Mike "." EzineArticles.com. http://ezinearticles.com/?Why-­You-­Cant-­Find-­Cheap-­Car-­Insurance&id=6907830EzineArticles.com© 2012 EzineArticles.com
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