Many Drivers Frustrated For Paying Higher Car Insurance Premiums Despite Perfect Driving Records
Some drivers feel that they are paying too much for their car insurance premiums even when they have very good driving records. This is because millions of people are uninsured and there are millions of drivers who have driving records with a lot of blemishes on them.
A man or woman who has a clean driving record and will be insuring a small compact car such as a sedan can expect to pay around $1,000 per year for their basic liability car insurance coverage. When a person is classified as a low risk driver, this means that they have not amassed more than one traffic ticket and they have never been involved in a car accident.
Many drivers who fall into this classification pay very high insurance rates. More than 30 percent of drivers pay more than $1,500 per year for coverage and almost 60 percent pay more than $1,000 per year for insurance coverage.
In many places, the same female driver with the same driving record will pay between $730 and $3,300 for her car insurance coverage. This is mainly due to the fact that all car insurance companies assess a driver’s level of risk differently.
Insurance adjusters have a formula in place that they use. For example, a female driver may have a clean driving record but may have a bad credit score and live in an area where there is a lot of crime. This will increase her insurance rates. Another car insurance company may look at the same woman and give her much lower premium rates because they place less bearing on a credit score.
There are so many car insurance companies for drivers to choose from that the market has become a very competitive one. Another issue is that each state has different definitions of what their minimum liability coverage entails. This can increase the insurance premium rates that drivers have to pay. Car insurance companies are trying to be profitable and they benefit from the mandated minimums.
Drivers who have clean driving records should consider shopping around for a different car insurance coverage provider if they feel that their rates are too high. It takes just a few minutes to get several insurance quotes online. Insurance companies want to lure policy holders away from their competitors so drivers may be able to secure some insurance discounts and lower rates so that they can save money.
