4 Reasons Why Your Car Insurance Is So High

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As a vehicle owner, you probably look at car insurance as a necessary evil. If your car insurance is too expensive, however, it can really put a damper on your budget. Unfortunately, many people spend much more than they should on car insurance, and there's a good chance that you are paying more than you have to as well. Here are four common reasons why your premiums are so high; once you spot the problem, you can then make changes to start saving a lot of money.

1. You Pay Your Insurance Monthly

Did you know that many insurance providers charge extra each month if you pay your insurance monthly rather than paying every six months? In some cases, the amount is negligible, but some companies charge more than you probably think. Ask your insurance agent how much you could save by paying your insurance twice a year. Although it might hurt to shell out that much cash at once, you could see significant savings if you do. Plus, you'll have one less thing to worry about when handling your stack of bills each month.

2. You've Had the Same Insurance Company for Years

You might think that your car insurance company rewards you for being a long-term customer, but the sad reality is that this often isn't true. If you haven't shopped around for insurance in years, you should know that there is probably a better rate out there for you. Use a few online quote engines to find the best prices, and consider switching if you find significant savings. Another option is to present the quotes that you find to your insurance agent. To keep you as a customer, your agent might be able to work out a better rate for you.

3. You Have a Low Deductible

Having a low deductible on your insurance policy can help you cover damages without having to drain your savings account, but lower-deductible plans can also come with much higher premiums. Consider raising your deductible and keeping your deductible amount in a savings account in case you need it. Then, you can reduce your out-of-pocket expenses each month while still having peace of mind.

4. All of Your Household Drivers are On Your Policy

If everyone in your household doesn't drive your vehicle, then it's probably not smart to have them all on your policy. For example, teenage drivers can come with very high insurance rates, especially if you have a high-value vehicle, so it might be smart to put your teen on his or her own policy with just the vehicle that he or she drives.

As you can see, there are a lot of different things that can cause your car insurance to be expensive. If any of these things apply to you, consider making changes now so that you can start saving money on your insurance policy. Speak with agents like Cambridge Insurance Brokers (Preston) Ltd for more help.