Why is My Car Insurance So High? 3 Possible Reasons in 2023
Why is My Car Insurance So High? 3 Possible Reasons in 2023
Posted on March 13, 2023
Since insurance is a legal necessity for car owners, everyone must obtain it. As a result, insurance businesses are frequently less customer-friendly than the usual business. This post will discuss some potential methods your insurance provider may be exploiting you and how to avoid them.
Higher Than Average Rates
Regrettably, insurance companies frequently overcharge you for basic prices under the false pretence that you won't truly verify what you owe. There is no cap on the amount insurance firms can charge you, so competition is the only true safeguard here. This is the main reason why many people have really high car insurance prices in Canada.
You may look up local insurance rates here. If it turns out that you are paying much more for insurance than the average, your only real choice is to shop about for a better deal, or at the very least, inform your insurance provider that you will if they continue to overcharge you.
Extra Fees
One ploy used by insurance firms to attempt and increase their revenue is to tack on numerous small additional costs that you don't truly need in the hopes that you won't check to see what they are and if you actually need them.
Examples of typical insurance policies include those for rentals, roadside assistance, and towing. All of these are quite specialized and, in some situations, even unnecessary. With a fine-tooth comb, look over your coverage; when you find something you don't understand or need, bring it up with your insurer.
Not Paying Out
The whole idea behind insurance, and the reason it's required by law, is that if/when accidents do happen, the damages will be covered by the insurance company. Insurance is essentially a safety net that you pay into in the hopes that should you be involved in an accident, you won't have to pay the high costs of repairing or replacing the car.
Insurance firms are renowned in reality for attempting to pay out as little money as possible should an accident actually happen. If you ever find yourself in such a circumstance, they will look for any excuse to cut your coverage. They won't fully protect you, for instance, if you didn't collect the other driver's insurance information. Or having a coverage that only covers medical expenses for a year since after that you're thought to have had enough time to recover (which is not how medicine works).
Thats it! Hopefully this answers your question of "why is my car insurance so high? If you'd like to learn about how to make your car insurance cheaper, click here.