Why is car insurance not affordable?
I have to have a car to get to work, but I can’t afford the high insurance. Without the insurance I can’t drive the car, so I can’t go to work. Why do companies charge so much for coverage?
“Auto insurance rates are based on the insurance company’s underwriting criteria, and while rates may be affordable for some drivers, they may appear to be astronomical for others.
Because there are so many rating factors that influence the cost of insurance, it is usually a combination of factors that negatively impact a policy rate. Many factors can be out of your control as a consumer, such as:
- Credit score (in some states)
- Zip code
- Annual mileage
- Limited driving experience
- Claims history
Understanding these factors can help you to reduce your cost of insurance over time. But if you want to make an immediate impact on your insurance bill, your best bet is to shop around for a cheaper policy.
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