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?
Apr 14, 2021
Answer provided by
Answered at Apr 14, 2021
“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.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Do car insurance policies offer maturity benefits?
I am going to be buying auto insurance soon and I was wondering, does something like maturity benefits exist for this type of insurance?
Feb 25, 2021
Does GEICO offer the cheapest auto insurance?
I heard a while back that GEICO's prices are the best. Is this true?
Apr 12, 2021