Reader’s Question:

I am just wondering, why are insurance prices now so much more than what it used to?

Natalie

Baltimore, MD

Many people think that getting very cheap car insurance is impossible today. That may be true since a lot of factors contribute to the rising cost of insurance premiums. Here are some factors affecting the rise of automotive insurance costs over the years.

1. Your claims history would in itself can explain why your premiums don’t cost as it used to be. If you had a lot of claims in the past, had been in accidents or had been apprehended for moving violations, chances are you would be paying more for your insurances.

2. Changes in your car also greatly affect the cost of car insurances. If you are looking for a very cheap car insurance, you might want to consider less expensive car models. Repairs to be made for more expensive car brands are expected to be more than less expensive brands.

3. The increasing number of non-insured drivers also adds up to the price insured drivers are paying. When you are in an accident with a non-insured driver, your insurance company would have to should most, if not all the amount of the damages.

4. The economy plays a big role in this too. The tough market, many people not making their payments on time, decrease in the value of stocks, all of these are affecting what you are paying for your insurances.

These are just some of the reasons why it is now very difficult to find a very cheap car insurance. The only thing we could do really is to follow tips on how to reduce these prevailing insurance prices.