Why Is Car Insurance So Expensive?

Car insurance can be expensive because of factors like your age, chosen coverage, driving record, credit rating, and even where you live.
Written by Jason Tushinski
Reviewed by Kathleen Flear
Several factors can contribute to
making your car insurance expensive
, including your age, your chosen coverage, driving record, credit rating and where you live.
But just because
car insurance
can be pricey doesn’t mean that you can’t find a good deal. With a car insurance comparison app like
, you can quickly sign up, compare car insurance quotes, and purchase the policy that works best for you.
The average Jerry user saves $879 per year! So again, who says car insurance needs to be expensive?
Compare auto insurance policies
No spam or unwanted phone calls · No long forms · No fees, ever

Why is my insurance so expensive

No one denies it—car insurance can be expensive. Here’s a breakdown of the most common factors that drive insurance premiums up.

You’re a young driver

young drivers
get the shaft? Unfortunately, when it comes to car insurance, it can feel that way.
The hard truth is that younger drivers are inherently riskier to insure. They are 4.5 times more likely to get into an accident than more experienced drivers. This is a major factor in why insuring young people can be so expensive.

Costly insurance coverage options

When you are looking for car insurance, the more options you add, the more your coverage will cost.
full-coverage insurance policy
can cost nearly 70% more than a only carrying
liability coverage
. However the extra cost may be worth it for the inclusion of collision and comprehensive coverage.
Collision insurance
pays for repairs to your vehicle if it is damaged in an accident with another vehicle.
Comprehensive insurance
covers damage resulting from an accident that doesn’t involve another car. Both options are good to have, but they’ll significantly increase your premiums.

Your driving record

Drivers with recent accidents or
traffic violations
on their record will be significantly harder to insure.
Insurers assessing your record may deem you likelier than other drivers to get into an accident or cause traffic violations. And so long as you’re deemed a risky driver, your premiums will rise.
Having a serious offense like a
DUI on your record
will make it even harder to keep your insurance premiums low. Some insurers require drivers with a DUI to file for
SR-22 insurance
, which will increase your costs even more.
Key Takeaway SR-22 is a form filed along with your insurance attesting that you meet your state’s minimum liability requirements.

Your location

Unfortunately, your car insurance rates may go up simply due to the zip code you live in. If there is a history of costly car insurance claims from your area, your insurer will take this into account when calculating your rate.
Insurers may make the assumption—rightfully or not—that drivers in your area will file expensive claims, and hike premiums accordingly.

Bad credit

In some states, your
credit rating may affect
how much you pay for car insurance. If you have poor or no credit, you may be charged more for insurance.
Generally speaking, insurance companies tend to assume that drivers with poor credit are at higher risk to file a claim.
Keep in mind that California, Hawaii, and Massachusetts have outlawed using credit rating to set insurance rates. If you live in one of these three states, you won’t have to worry about a poor credit rating affecting your car insurance premiums.
Key Takeaway Many factors can contribute to high insurance rates, including age, choosing costly coverage options, having a poor driving record or bad credit, and living in a higher-risk zip code.

How to lower car insurance

Now that you know what factors make car insurance so expensive, let’s look at how you can find savings.

Compare quotes from different providers

Always compare insurance quotes because they can vary wildly between insurers.
While most insurance companies consider similar factors when setting their premiums, they all weigh those factors differently. This means that the same driver and coverage could end up with a huge range of quotes from different insurers.
For this reason, shopping around to compare multiple quotes is your best bet to find
cheap car insurance
. But don’t waste time filling out long forms and making calls—use
Jerry is the web’s top car insurance broker and comparison shopping app. Jerry generates competitive quotes from the nation’s top insurers in order to find the best and cheapest car insurance for you. No forms, phone calls, no hassle!
"This is the real deal. The app is super easy and intuitive to use. Best part, I’ll be saving ~$75/month!!! No joke. I’m just genuinely happy to be saving almost $1000/year. That’s a pay raise yo!" — Satisfied Jerry user
Here’s how much drivers have saved simply by comparing rates and switching with Jerry.

Young drivers

Cost after Jerry
Cost before Jerry
Avg annual savings

Full coverage insurance

Cost after Jerry
Cost before Jerry
Avg annual savings

Bad driving records

Cost after Jery
Cost before Jerry
Avg annual savings

Look for discounts

When you’re shopping for car insurance, always
look out for discounts
. Most insurers will offer discounts if policyholders can meet certain criteria.
Here are some of the most common discounts that can help lower your annual premium.
Discount type
How to get it
Potential annual savings
Defensive driving
Complete a defensive driving course
10% to 15%
Vehicle anti-theft
Install an anti-theft device in your car, such as a GPS tracker
10% to 15%
Good student
Full time student with a good GPA (3.0 or higher)
10% to 15%
Join a professional organization
10% to 15%

Add young drivers to a parent’s policy

Young drivers have some of the highest rates in the country, due in part to the increased likelihood of accidents and risky driving behaviors.
If buying insurance is simply too expensive for a young driver, being
added to a parent’s policy
can be a good way to save significantly on insurance costs.
Key Takeaway Comparing quotes from multiple insurers, asking about potential discounts, and adding young drivers to a parent’s policy are all ways to help lower insurance premiums.
Haven’t shopped for insurance in the last six months? There might be hundreds $$$ in savings waiting for you.
Judith switched to Progressive
icon savingsSaved $725 annually
Alexander switched to Travelers
icon savingsSaved $834 annually
Annie switched to Nationwide
icon savingsSaved $668 annually
Compare Car Insurance Quotes For Free
Jerry automatically shops for your insurance before every renewal. Members save $872/year.
rating primary
Rating on App Store
Start saving money!
12,000+ Reviews
Trusted by 3.5M car owners like you

You might also be interested

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free