Why Your Auto Insurance Rates Might Seem High

These are some of the reasons why your car insurance might seem so expensive.Why Your Auto Insurance Rates Might Seem High

Almost all of us know someone who seems to be getting a better deal on his or her auto insurance.  Whether they are getting more coverage for the same price, or seem to be paying less for the same coverage that you have, it’s natural for some drivers to feel like they’re being swindled.  However, it’s important to understand that there are certain circumstances that might explain your higher rates.  Here are some of the reasons why your auto rates might seem high.

High-Performance or Specialty Vehicles

If you drive a high-performance or specialty vehicle, this won’t just cost you at the dealership.  You should also expect to have higher auto insurance rates.  This is because specialty cars tend to have higher repair costs due to the scarcity of replacement parts.

Low Deductibles

Many drivers set low deductibles on their car insurance to ensure that they can afford repairs if they are ever in an accident.  However, because deductibles and premiums have an inverse relationship, setting a low deductible might mean you have to pay more upfront.  Generally, the lower your deductible is, the higher your premiums will be.  If you are interested in lowering your insurance rates, you should consider raising your deductible.

Under 25

If you are younger than 25, you should expect to have higher insurance rates than an older, more established driver.  As a general rule, drivers between the ages of 18 and 25 tend to have higher premiums because they have yet to establish their own insurance history and an extensive driving record.  For the time being, stay insured, maintain a clean driving record, and avoid any claims, and you will likely see your premiums decrease with time.

These are some of the reasons why your auto insurance rates might seem high.  Still have questions regarding your car insurance?  Turn to the experts at Desert Empire Insurance.  Our dedicated team is ready to assist you with all your coverage needs.  Contact us to get started today.