Auto insurance premiums vary significantly from person to person, depending on various factors. While some of these factors are within your control, others may be out of your hands. Understanding your high rates can help you make informed decisions about your coverage.
In this article, we'll explore 10 common reasons your auto insurance rates may be so high.
Why is my auto insurance so expensive? 💰
Full coverage auto insurance usually costs between $1,500 and $2,200 annually. If your premium exceeds this range, several factors may be inflating your costs.
What does my auto insurance cover? 🔧
The final quote depends on your specific coverage choice.
You can also add the following car insurance coverage options:
🚘Rental car reimbursement - It covers the cost of a rental car while your vehicle is being repaired or replaced following an accident.
🔧Roadside assistance - It offers assistance in case your vehicle breaks down on the road, such as due to a flat tire, dead battery, running out of gas, and other issues.
🗳️Loan/lease payoff coverage - It covers the difference, within specific limits, if you owe more on your vehicle than its value and your car is stolen or totaled.
👨🏻🔧Mechanical breakdown - Also called as car repair insurance, it pays for repair expenses when your vehicle breaks down, requires new parts, or experiences various mechanical issues.
What is the recommended auto insurance coverage? 🔐
Each state requires a minimum of car insurance coverage to meet financial responsibility laws. Liability insurance is the main mandated coverage in all states except New Hampshire. However, New Hampshire requires drivers to show they can cover costs in case of an at-fault crash.
Talking to your agent 👨🏻💼 or provider 🏨 can help you choose the right coverage.
How can I reduce insurance costs without compromising coverage? 🤑
Here are 10 ways you can reduce premiums without sacrificing coverage:
- Shop around: Compare quotes from different providers. 🔍
- Ask for higher deductibles
- Reduce coverage on older cars
- Buy your homeowners and auto coverage from the same insurer
- Maintain a good driving record
- Enroll in a defensive driving courseSign up for our safe driving program
- Improve your credit score
- Apply for low mileage discounts
- Explore payment options
- Inquire about group insurance
When should I consider switching auto insurance providers? 🔎
Reasons why you want to consider switching:
- Annual rates increase without claims or added coverage.
- Premiums are 40%+ higher than the state average.
- Poor or inaccessible customer service.
- New car purchase doesn't bind you to your current provider.
- Dissatisfaction with rates, service, or other offerings.
What are the basic steps in shopping for auto insurance? 🛒
Choosing the right insurance as a first-time car owner can be tricky due to the many options available. Here are the essential steps to simplify the process for you.
💂🏻 Safeguard your finances from unexpected auto incidents with the right insurance. 😌
Protect your finances today
At Doing Well, we understand the importance of securing your financial well-being and provide services tailored to ensure you're well-protected and prepared.
Here's what to expect:
- Personalized financial health check-ups to identify strengths and areas of improvement
- Expert guidance on selecting the right insurance products to protect you and your family
- Strategic planning for long-term financial goals and security
- Comprehensive review of existing insurance plans to ensure they meet your changing needs
- And more!
We provide monthly calls, continuous bookkeeping, and reliable support to free you up to enjoy life. Doing Well is your trusted ally in financial management, guiding you towards personal financial success.
