If you cringe every time you get your car insurance bill or every time the payment auto-debits from your bank account, you’re probably dwelling on this question: why is my car insurance so expensive? You’re just about fed up, and thinking about Atlanta car insurance rates kind of makes you want to flip some tables. There are a lot of factors that affect the cost of car insurance, and there are a few reasons that your premium might seem high.
Why is car insurance so expensive?
1. You live in the city.
Being in the city of Atlanta means you could see higher rates. That’s because drivers who live in urban areas have a higher chance of getting into an accident because of the high volume of cars on the roads. Big cities can also have high rates of car theft, vandalism, and other crimes. Insurance companies look at your ZIP code so they can get an idea of crime data for the area where you live.
So, there are a lot of great things about living in Atlanta. Unfortunately, the big city could come with big car insurance rates.
2. You have a bad credit score.
If your credit score isn’t looking so great, that might be a reason for your high insurance rates. People with good credit are seen as being less likely to get into an accident or file a claim, so they’re more likely to get lower Atlanta car insurance rates. Drivers who have poor credit scores may see higher rates.
3. You have a history of traffic tickets, driving violations, or accidents.
Insurance companies also look at driving history when setting car insurance premiums. A DUI, speeding tickets, traffic violations, or accidents can instantly put a neon sign flashing “risk” over your head when you get car insurance. That’s because these traffic tickets or incidents cause the insurance company to see you as an unsafe driver, and unsafe drivers are more likely to get into an accident. And as a result, you could see higher Atlanta car insurance rates.
4. You’ve set a low deductible.
Your deductible is the amount you agree to pay if you have a claim. So, if your deductible is $500 and you have a claim totaling $7,500, your insurance company would pay $7,000 and you’d pay $500 out of pocket.
There’s usually a relationship between your deductible and your premium. If you set a low deductible, your premium could be higher, while if you set a high deductible your premium could be lower. That’s because if your deductible is higher, you’re less likely to file a claim.
Of course, you don’t want to set your deductible so high that you’d be in big trouble if you had a claim – fishing for coins in the couch cushions kind of trouble. But if you’re financially comfortable raising your deductible, you could see lower car insurance rates.
5. You’re a young driver.
Young drivers (under age 25) have higher crash rates than other demographics. That’s why young drivers tend to pay more for their car insurance, especially young men. Once you hit 25, though, your rates could level out so long as you’ve kept a good driving record.
6. You drive an expensive vehicle or a vehicle that doesn’t have great safety ratings.
The car you drive also has an effect on how expensive your car insurance rates will be. The year, make, and model of the vehicle makes a difference, as does the safety features it has.
7. You haven’t bundled your home and auto insurance.
Bundling, or getting your home and auto insurance from the same company is kind of like insurance magic. Many carriers offer discounts for bundling, and there may be some savings to be found if you consider bundling. You might want to find out if it’s the right option for you so you can save money on car insurance.
8. You have collision and comprehensive coverage.
Collision and comprehensive coverage will protect your car if something happens to it. Collision coverage will pay to repair or replace your car if you’re in an accident, and comprehensive coverage will repair or replace your car if something other than an accident damages it (for example, fire, vandalism, animal strikes, falling objects, or theft.) Though these coverages are super important for protecting yourself from financial loss, they can also add quite a bit to your car insurance bill.
9. Car insurance rates have been going up in general.
Car insurance rates have been going up for a few reasons, which makes it more expensive.
First, people are driving a lot. More vehicles on the road mean an increased frequency of accidents.
Second, distracted driving remains a huge problem nationwide. Texting and driving is a major cause of accidents.
Third, healthcare costs have been rising, meaning that the medical bills of people who have been injured in accidents are high.
These factors have been contributing to the higher cost of car insurance around the country. You might have just been swept into this trend.
10. You haven’t shopped your rates.
Has it been a while since you’ve shopped your Atlanta car insurance rates? Every insurance company is different, so by getting multiple quotes to compare coverages and driving you might find that you can get better rates.
Our team can help you there. We’ll help you find great coverage at a great rate. Get started with your Atlanta car insurance quotes by filling out our form or giving us a call.