Buying Auto Insurance What Is Making Your Policy So Expensive

Buying Auto Insurance: What is Making Your Policy So Expensive?

Do you feel like your auto insurance premium is higher than the average auto insurance premium? Has your auto insurance premium risen unexpectedly, leaving you wondering what is making it so much more expensive? Most drivers only ever think about their auto insurance policies in two situations: when they have been in an accident or when the premium is due. In the event of an accident, drivers tend to just be thankful that the auto insurance company is there to help them. But when it comes to that monthly or bi-annual separation payment, drivers are often a bit less enthusiastic about the words "auto insurance."

The fact is that auto insurance can save you from losing thousands, even hundreds of thousands of dollars in medical bills and property damage. But it’s quite reasonable to want to be sure that you aren’t overpaying when buying auto insurance. Here are some factors that might be raising the cost of your auto insurance premium.

Traffic tickets

The average traffic ticket can cost anywhere from a hundred to a couple hundred dollars. If you pay that fine within thirty days then you shouldn’t have to worry about incurring more fees. But the real expense for that missed stop sign or speeding fine comes in the form of a higher insurance premium. Traffic fines send a signal to the insurance company that you may be an unsafe driver.

At-Fault Accidents

This goes along with traffic tickets but on a larger scale. An at-fault accident could cost your insurance company thousands, even tens of thousands of dollars and may raise your auto insurance premium.

High Risk Car

The HLDI (Highway Loss Data Institute) puts together a list of the ten automobiles that have the highest collision losses. If your car is on that list in any given years, that could contribute to that higher auto insurance premium.

Having a Foreign Car

Some imported cars are much more expensive to repair due to the expensive of parts. If you’re car is imported, and especially if it is a high-end luxury imported car then this could be making your auto insurance more expensive.


Auto insurance companies base insurance premiums on statistical data and age does play a factor. Insurance companies can figure which age groups are a higher risk to insure. If you belong to one of the age groups that have been pegged as a higher risk group then this will make your auto insurance premium higher.


The location where you live, and thus where your car is parked and is driven, influences your auto insurance premium. This works on several fronts. First, living in an area with a high rate of auto theft could raise your insurance premium. Also, living in a large city or in an area with a high cost of living could make your auto insurance higher.

Amount of Time with Company

If you’re constantly switching auto insurance companies, that could be making your insurance premium higher. Many auto insurance companies offer reduced rates to customers who stay with them for several years. Stick with an auto insurance provider longer and it could mean a lower rate.

You Had a Gap in Coverage

Letting your auto insurance lapse by failing to pay on your policy or failing to renew it can lead to higher rates in the future. That gap in your auto insurance coverage will show up on your driving record. Driving without insurance is illegal almost everywhere. Letting your insurance lapse makes you a higher risk for insurance companies and you can expect to see evidence of this in a higher insurance rate once you do get coverage again.

What these factors show is that while you can’t control every factor that raises your insurance, you actually do have some control over others. Being a safe driver can really pay off over time, as can staying with a good company and always paying and renewing your policy in time. If you still think that you’re paying too much for your auto insurance, try shopping around for a lower rate from other reputable auto insurance companies.