If you’ve ever wondered, “Why is car insurance so expensive in the USA?” you’re not alone. There are several reasons for it, including location and car type. Many insurance companies base their quotes on a combination of factors, including your credit history, vehicle type, and theft rates. These factors can make a big difference in your overall premium, so it’s important to research these factors before purchasing an insurance policy.
Many people dislike the high cost of insurance. However, it’s a necessary evil. Most states require drivers to carry some form of auto insurance, and having adequate coverage ensures your safety. A well-maintained car costs thousands of dollars to repair, so having adequate coverage is essential for peace of mind. However, if you think about the cost of insurance as a necessary evil, you might start to see the benefit of paying a high premium.
While many factors can raise premium costs, one of the most prominent is your gender. Young male drivers pay 20 percent more for car insurance than do young female drivers. The difference is smaller for drivers over thirty, but it never goes away altogether. In some states, however, gender discrimination is illegal. In California, Hawaii, Massachusetts, and Michigan, women pay less than men for the same coverage. In addition to these, parents of male teenagers can expect to pay as much as 30% more than their female counterparts.
Auto insurance premiums depend on many factors, including the type of auto insurance policy a person chooses. Young drivers are more likely to have an accident than older, more experienced drivers, and are associated with higher premiums. Similarly, men tend to have fewer accidents than women, and are more likely to pay for insurance when they’re younger. A person’s age and marital status are also factors. The type of car he drives also affects his premium. Male drivers tend to have fewer accidents and have fewer traffic violations, but it doesn’t necessarily mean he’s responsible.