This is Why Your Car Insurance is So High (Plus Tips to Save Money on Your Policy)

If you’re looking at a recent bill and wondering why your car insurance is so high, you’re not alone. Although auto insurance rates naturally tend to increase from year to year (the motor vehicle insurance index recently increased 4.1%), there are other reasons car insurance costs can go up too.

In order to help you wrap your head around the reasoning for these seemingly random changes, we’ve compiled this list of the 16 factors that affect car insurance rates — plus we’ve included details on how to save money on car insurance, including shopping around for the best auto insurance policy.

Because car insurance premiums are mostly based on risk, many of the factors that go into determining the cost of your auto coverage has to do with how risky an insurance provider believes you to be. Surprisingly, this sometimes has less to do with your actual driving record and more to do with your profile — things like how long you’ve been driving, where you live, how much you drive, etc.

So whether you’re a new driver shopping for car insurance or just looking to save money on your car insurance, here are 16 of the top factors insurance companies look at when determining what they charge you.

6 Genius Hacks All Costco Shoppers Should Know

1. Age

Unfortunately, age isn’t just a number when it comes to auto insurance companies. Older drivers with more experience tend to get into fewer accidents. So the older you are, the less you’ll likely pay for coverage. The same can be said in reverse. Very young drivers or adults sharing a policy with drivers under the age of 25 can expect to pay higher premiums on their auto coverage.

If you’re a young driver or plan to add one to

Read the rest