Car insurance is a requirement in every state in the United States. It protects drivers from the costs of a car accident. Car insurance is marketed as an investment, but sometimes consumers only feel it is a burden.
If this is the case, you may just be paying too much for your car insurance. Check out if any of these factors are the reason for your expensive car insurance premium in California.
Your car’s model and features are factors that affect your insurance premium. Cars that have minimal or outdated safety features tend to be unsafe during accidents.
This means that the driver’s and the passenger’s risk of sustaining an injury is higher when in such a car compared with one with the latest safety features.
In a similar manner, cars that are costly to maintain or repair are likely to drive up your premium.
Another factor to consider is whether your car has a high likelihood of getting stolen, such as Ford Pick-ups and Honda Civics. Check out NICB’s report before you buy a car.
If you or someone you added to your policy is a new driver, this will drag up your car insurance costs. According to the CDC, new drivers have a higher likelihood of getting into accidents due to their inexperience. This is something that you will have to weather out. But teaching your new driver tips to drive more safely will help ensure your premium doesn’t go up further.
Do you live in a neighborhood with high crime rates and car accident rates? This is another factor that may be affecting your premium costs. If you live in a neighborhood with high crime rates, your car has a higher chance of getting stolen. Meanwhile, if your neighborhood or city in California has high car accident rates, even if you are a safe driver, you still have a higher chance of getting involved in an accident.
As you may have guessed, being involved in car accidents or violating traffic laws will increase your premium. This signals that you have a high tendency to be involved in a car accident. However, getting into an accident once doesn’t mean that your car insurance premium will be high permanently. It could still go down after a certain period of no accidents or violations.
Remember these factors and how they affect your car insurance premiums. Consider your car insurance the next time you make a major life decision. Learn more at Panorama Insurance Agency Northridge, CA.