8 Common Factors that Increase Your Car Insurance Payments

Factors that Can Increase Your Car Insurance PaymentsRead on to learn most common factors that can increase your car insurance payments so you can start saving money.

Insurance payments for your car are often hard to grasp and can hit your bank account with frustratingly high invoices. Without understanding how your payment is determined, it can be hard to get ahead of insurers and work to lower your monthly insurance payments (especially when it comes to your vehicle insurance).

With the right knowledge, however, you can begin taking back your hard-earned money.

No worries – I’m here to help!

As you might know, I am a bestselling wellness author with about 2 million books sold globally.

Plus I founded a groundbreaking video course called The Anxiety Cure.

I love sharing tools to help people live their happiest and and most successful life.

With this mind, I created this article about how to avoid high car insurance payments.

8 Common Factors that Can Increase Your Car Insurance Payments

Read on to learn most common factors that can increase your vehicle insurance payments so you can start saving money.

1. Your Car’s Horsepower

If you have a powerful, sporty vehicle that’s built to go fast, you’re almost certain to be hit with much higher insurance payments. Six and eight-cylinder cars are more expensive to insure than four-cylinder cars. If you’re concerned about your insurer’s determination of your vehicle’s horsepower, you should contact them directly (it just might save you some money in the long run).

2. Where You Live

Depending on where you live, your insurance rates can vary wildly. If you live out in the country, and rarely deal with any traffic, that will help keep your insurance rates low. Conversely, if you live in a hyper-crowded, traffic-ridden city, your insurance premiums will be considerably higher. The tax rates and other location-specific qualities can affect your insurance rates as well. While city life can be thrilling, it can also be incredibly expensive.

3. How Long You’ve Been Driving

If you’re a brand new driver (especially if you’re a teenager), your insurance rates are bound to be much higher than an experienced driver. The longer you’ve been driving, the more time you have to prove you’re a safe, reliable driver. Be sure to emphasize your driving experience (especially if it’s good), when looking for insurance, as it may help you lower the overall costs of your insurance each year.

4. Your Driving Record

The most common factor that affects the cost of your vehicle insurance is your actual driving record. If you want to access hyper-low premiums and other insurance benefits, you have to stay safe on the road and avoid accidents. The more accidents, traffic violations, and car breakdowns you have, the more expensive your insurance will become (so it’s time to buckle up and keep the phone put away while you’re on the road).

5. Your Gender

Unfortunately, there is still gender discrimination involved in many aspects of peoples’ financial and personal lives. And insurance is one area where this is obvious. Females are often given higher premiums. And this practice is more rampant than you’re led to believe. Be sure to be upfront with your insurer if you feel you’re being discriminated against. You can always go with a better insurer.

6. Your Age

Ageism is also involved in insurance rates. Vehicle insurance is one of the greatest offenders in this case. Both teenager and senior drivers are typically given significantly higher rates. Even though seniors are often highly experienced drivers, they are also more likely to have been in accidents (even if it was decades ago). This unfortunately puts them at a disadvantage when it comes time to determine their vehicle insurance rates. For teenagers, the lack of experience is what can doom them to high, frustrating vehicle insurance rates.

7. How Often You Drive

Aside from the length of time you’ve been driving, the actual amount of time you spend on the road during the year will significantly impact your insurance rates. If you rarely get on the road, you need to let your insurer know. You should share this fact and try to score major cuts to your insurance rates. On the other hand, if you’re constantly driving for work and your personal life, you need to prepare for higher rates. The condition of your vehicle can be a huge factor in your insurance rates as well.

8. Your Credit Score

If you have a poor credit score, you’re probably painfully aware of how it impacts every financial aspect of your life. Unfortunately, car insurance is also impacted by low credit scores. You’ll need to expect much higher rates than those with high, reliable credit scores. Finding ways to boost your credit is the only solution. Dedication and luck are about to become a huge part of your life.

Conclusion on Lowering Car Insurance Payments 

If you have the dedication and focus, you can take advantage of the knowledge you now hold to get your insurance rates to a low, manageable state. If you think of the amount of money you’ll be saving each month, you’ll find the motivation you need to take the steps that will help you on this frustrating, but worthwhile financial journey.

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