Is Your Insurance Bill Too High? 5 Reasons Why Your Auto Insurance Costs Keep Rising

Section 1: The Number One Reason Auto Insurance Costs Keep Rising

(Cliff Note: This is in part due to us living in California. Insurance rates in some other states are nowhere near as high as ours.)

If you’re like the vast majority of people, you probably feel like your car insurance premiums keep getting higher and higher.

It doesn’t matter if you’re in your late 20s or 40s, rates keep going up. And, while there’s a great amount of controversy over why this is, we’ll discuss some of the reasons behind the reason.

5 Reasons Why Your Auto Insurance Costs Keep Rising

1. You Have A Higher Risk Of Being In An Accident

With the amount of traffic, snow, accidents, and other factors in the U.S., your risk of being involved in an accident can be significantly higher than someone who lives on the other side of the world.

What Happens to Your Insurance Rates When You Get a New Car?

*The author owns shares in Wells Fargo, as well as Fiat Chrysler Automobiles and Merck & Co.

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Why You Should Consider Moving to a Different State

If you are in an accident and need to file an insurance claim, chances are you will have to file a complaint against the other party as well. The other party may also file a complaint against you and even make a police report. So when you file a claim, you might get conflicting statements and reports from the accident investigation and various insurance companies. This could mean that your complaint against the other party is not legitimate, and therefore, not used by any insurance companies when considering whether to pay out the claim.

How to Fix the Problem

After you filed a claim against someone, you must then send a copy of your claim to the other party. This helps to facilitate a resolution for the claim in a more unbiased and appropriate way.

How Your Driving Record Affects Your Auto Insurance Premiums

The cost of auto insurance is higher than you may realize. If your credit score is low, that could be the reason why.

In a recent article from the Pew Research Center, we learned that the average income of a new car buyer is $40,000. Because of that, you might think car insurance is cheap.

Not necessarily.

In fact, according to an article on InsuranceQuotes.com, the average premium on a comprehensive auto insurance policy has gone up by over 37 percent over the past five years, from $551 in 2013 to $727 in 2017. That’s an increase of almost $200!

Why?

According to this report, a lot of it has to do with how your driving record is recorded.

Is Your Car Keeping You from Lowering Your Auto Insurance Cost?

If you own or drive an automobile, you might be underpaying your auto insurance right now. Why? You are not taking advantage of what the car is really worth by calling your car a lemon or not fixing it when you need it. You are also not making maximum use of what you have when you drive. As a result, you’re spending more than you need to on car insurance.

But in reality, your insurance rates are already expensive. You can ask why your premium is so high, and here are a few great reasons why your auto insurance costs keep climbing:

1. Your Car is a Leper

You might be wondering why your auto insurance costs keep rising when your car is actually not a lemon. In most cases, you are not going to get a great deal from your current insurance company if you need to make an insurance claim.