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This Is Why Your Auto Insurance Is So Expensive

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Cara Pace
July 8, 2019

For a Florida driver, getting into one car accident can cause their auto insurance to go up $573/year.

It’s understandable that getting into an accident could cause your car insurance to go up. But what if you have an impeccable driving record? Unfortunately, you may still be paying more for your car insurance than your accident-prone friend. 

Car insurance companies consider several factors to determine their rates. Some of the most common factors that insurance companies look at are: 

  • Gender
  • Driving record
  • Vehicle type
  • Age
  • Location
  • Marital status
  • Lapse in coverage

What makes your insurance so expensive depends on a combination of these factors. But each insurance company weighs these factors differently when determining your car insurance rate, so it's important to compare car insurance from different companies.

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Just because you're a woman

The debate is hot as to whether using gender as a factor in determining car insurance rates is fair. Six states have now passed laws disallowing gender to be used: California, Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania. 

Historically, males have paid slightly more for being on the road. Data show insurers that men tend to drive more, receive more driving infractions (speeding tickets, DUIs) and choose car models that are more expensive to insure. 

Recently, though, new studies have found women are paying more for car insurance than their male counterparts in some areas. Some of the states where women are paying more for insurance include Nevada, Michigan, Oregon and Utah.  

Distracted driving is on the rise

It’s illegal to text while driving in 48 states, Washington D.C., Puerto Rico, Guam and the U.S. Virgin Islands. Distracted driving is increasing as Americans are increasingly attached and dependent on their cell phones. 

If you get pulled over and ticketed for distracted driving, speeding or any other infraction, you’ll have to pay a fine. What’s more, just one ticket for a minor violation can send your car insurance premium up 20% to 40%.

>>Related: Texting while driving ban in effect for Florida

For avoiding ‘I do’

The number of single people is on the rise. The latest General Social Survey data show that the percentage of those without a partner is 35% in 2018. For those ages 18-34, the figure jumps to 51%.

If you are married or plan on getting married, Congrats! You have found love - and possibly lower car insurance.

How to get around roadblocks 

Factors like your age and gender can’t be changed. And you can’t get married or stay single, or move to another state just for insurance sake. But there are factors you can control to lower your car insurance.

Don’t skip a payment. Any lapse in your auto insurance coverage can cause your premium to jump. Put your payments on auto pay, or if you can, pay your 6-month or annual premium in full. Be sure to ask your insurance company about a discount for setting up automatic payments or paying your premium in full.

Choose your ride carefully. Driving a different type of car could change your premium significantly. If you’re thinking about getting rid of the family car and switching to a SUV or getting that sports car of your dreams, check with your insurance provider to see how it will affect your premium. 

Shop your car insurance. Since every auto insurance company uses a unique formula for setting their rates, it’s important to shop around for multiple quotes to get the best deal. A comparison quotes site like Squeeze will make this a breeze. After you compare auto insurance, bring the lowest quote to your current provider and see if they are willing to price match. If not, be willing to switch.   

8 Roadblocks to Cheaper Car Insurance

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Compare rates to avoid higher premiums

No matter the reasons for your current insurance rate, there is a good chance you are paying more than you should be. Comparing your insurance rate on a regular basis is the smart move, and helps you ensure you are paying the least amount possible. Squeeze's insurance quote marketplace is the only service that allows you to compare real auto insurance quotes from real agents representing multiple carriers, without the worry or hassle of unwanted phone calls or emails–and all with no cost or obligation.

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