Why are my auto insurance rates still so high?

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Reader’s question:

I’m a perfect candidate for an auto-car cheap insurance quote—I’m a married mother of two, I live in a town of 300, and I usually only drive to the store or to grab some fast food. So why are my auto insurance rates still so high?

–Mrs. L. Shackelford

Good question.

Auto insurance isn’t an exact science, Mrs. Shackelford, so it’s hard to know why certain insurance companies behave the way they do. But there are some factors that might come into play:

Your driving record
This is probably the biggest one. Have you been in a lot of accidents, even accidents considered ‘no fault accidents? Those look suspicious to an insurance company. Were you at one time involved in a serious accident where you were liable? That also might play a role.

Your family’s credit history
Though it shouldn’t matter, you and your husband’s credit history might play a big role in why your rates are so high. If you have bad credit history, an insurance company might think you’re at a high risk to default on your premiums. As a result, your rates will be higher.

Where you live
Your neighborhood could cause a rise in your insurance rate, even if you live in a relatively homogeneous town.

So what can you do about it? Two words: comparison shopping. There’s a high percentage of chance that your insurance company is simply being too hard on you. There are ways to check for cheap auto insurance on line, and you should make sure you compare policies within companies, as well as between companies. Good luck!

GLJ