Why does car insurance cost so much?

So, why does car insurance cost so much? Well, like we have said before insurance companies view you as a set of risks.

When you seek out an insurance quote, the insurance agent is making a prediction on whether or not you will file a claim. To make that prediction he will weigh several factors, including your age, sex, marital status, car type, where you live, and of course your driving record.

Even with all of that information, insurance companies still can't be certain what kind of driver you'll be. So what they do to help get an even better idea of what to charge you for insurance, is compare you to other drivers like you.

For this reason, even if your driving record is pristine, if you fit a certain demographic you could still wind up paying a higher premium. If you are a young single male who drives a sports car, you'll most likely pay a high premium.

Not to worry though! The power of the free market is still at play here. Insurance companies still compete against one another for your business. Some companies focus on certain categories of drivers, such as high risk drivers, and other companies simply run a smoother more efficient business, and can pass along savings to you. If you are interested in getting an up-to-date free car insurance quote, try our free car insurance quote tool We'll provide you a free quote in as little as 5 minutes!

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