Posted on 1/31/2025
Car insurance is one of those necessary expenses that can feel like a burden, especially when the premiums seem unreasonably high. You might wonder why insurance companies charge so much and what factors go into calculating those sky-high rates. It’s not just about covering accidents—it’s a complex combination of risks, statistics, and regional influences. Let’s see why car insurance often comes with a hefty price tag and what you can do to potentially lower it. Risk Assessment Car insurance costs are rooted in risk assessment. Insurance companies evaluate how likely you are to file a claim based on various factors. Your driving history plays a significant role here. If you have a clean record, you’re considered a lower risk, while tickets, accidents, or DUIs can raise red flags and premiums. Another factor is the type of vehicle you drive. High-end cars, sports cars, and vehicles with expensive parts tend to cost more to insure. These ... read more