As many of us know, premiums for a car insurance policy can cost a lot. But have you ever wondered why? 

You pay a lot of money to your car insurance policy. Partly because it’s the law and you have to. And partly because if you get in an accident one day, you won’t have to pay for all the damages yourself. 

So if you’ve ever wondered “why is my car insurance so high?”, we’ve got some answers for you below. 

Why Is My Car Insurance So High?

There are a number of reasons that premiums for car insurance can cost so much. Before we look into that, however, it’s important to know what “high” is when it comes to auto insurance rates. 

For all drivers in the United States, the average cost of a car insurance policy is right around $1,600. 

That’s about $133 a month out of your pocket. If you’re paying less than that, good on ya! You’re part of the lucky ones. If you’re paying a lot more than that, then your rates are high. And it’s likely because of one of more of the following reasons. 

Your Driving Record

Your driving record is one of the first things that car insurance companies take a look at before they offer you their policy. They want to know how safe a driver you are. 

If you’ve been in some accidents or incidents on the road, then they consider you to be a higher risk. And, if you’re a higher risk, they’ll charge you a higher premium.

Having a clean driving record will get you a lower rate oo your car insurance premiums. 

Your Claim History

If you’ve had past accidents, the severity of those accidents will factor into your rates. For example, a fender bender can result in a higher premium. But it won’t affect it as much as if you were in a major accident that resulted in wrecked cars and/or injuries.  

Your Driving Activity

Your routine driving activity also factors into how much you pay for car insurance. If you put a lot of mileage on your car each month, you’ll pay higher premiums. Again, it’s just more risk for the insurer.

Oh, and don’t play games here and tell the insurance companies you drive a lot less than you actually do. If they find out, they consider that fraud and they may deny your claim.

Your Credit History

Car insurance companies want to know if you can pay your premiums on time. One of the ways they will do it is by taking a look at your credit history. 

If your credit score is not good, you are likely to have higher premiums. That is because they find it risky to insure you. 

Your Location

Car insurance rates differ in every state. That is because of the environmental differences as well as the accident rates. The higher the accident and crime rate, the higher the premium. 

Your Age

Car insurance companies charge higher premiums to drivers who are younger. That is because young drivers have less experience on the road. That means high rates of accidents and higher risk.


Gender plays a factor in how risky you are as a driver. For full coverage car insurance, male drivers pay higher premiums. But when it comes to liability coverage, there are higher premiums for female drivers. 

Your Coverage

What is covered by your policy determines how much premiums you will pay. For example, lower deductibles mean higher rates. And higher levels of coverage also mean higher rates.

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