6 Things that Can Ruin Your Car Insurance Budget
Reader’s Question:
I was told that getting a sports car insurance policy would be quite expensive. Is that true? If so, then why?
Clarissa
Houston, TX
When you think about sports cars the words “speed”, “power”, and “popularity” inevitably comes to mind. These three words are also the common reason why sports car insurance coverage can be quite expensive. Simply put, anyone who drives a sports car is tempted to show it around and drive it really fast which makes the risk of car theft and getting into more car accidents higher. The higher this risk, the bigger the premiums charged by insurers to compensate. Here are six (6) other things that could leave you paying very high car insurance rates:
1. Bad Credit – Let your credit slide and your insurer may take you off their “responsible driver” category and charge more.
2. Poor Driving History – This is one of the easiest ways to make or break your eligibility for cheaper rates. The more traffic violations you get and the more accidents you get into, the higher the rates.
3. Filing Too Many Claims – Similarly, filing too much claims will raise a red flag with your insurer. They will take it that you are getting into more trouble (see Poor Driving History) and therefore must charge more accordingly.
4. Accumulating More Mileage – The more you are on the road, the higher the likelihood of getting into a car accident and the bigger the chances of filing claims.
5. Moving to the Big City – Higher theft and accident rates, and denser traffic equals bigger risk of getting into a car accident (or getting your car stolen).
6. Insuring a Teen Driver – Teens are not the best drivers in the world, everyone knows that especially your car insurer. Adding a teen on your policy can make you pay rates that are three to four times higher.
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