Very many people don’t understand the concept of a car insurance. Even though they might have their reasons,it is essential to first understand what an insurance company has to offer before you decide what policy to purchase. Otherwise, you may end up paying more than expected for your car premiums.

Keep in mind the cost of a car insurance is determined by several factors. These factors can either increase or decrease the rates of your insurance. Here are some several factors which are the reasons that you are paying higher car insurance premium.

What Car You Drive

The car you drive makes a big impact on how much you are going to pay on an insurance policy. If your car has expensive spare parts like an expensive audio system that will cost more to repair or replace, it will definitely have you paying more of your coverage. However, there’s always a misconception that a car with bright colour such as red car will cost much, but that’s not the case.

You can purchase the car of your favouritecolour and not need to worry about the extra cost on the insurance.  Either way, you won’t know an insurance is charging more until you shop around. That’s why you should spending time doing your homework if you are to find a cheap car insurance agency to leverage.


It’s difficult to expect affordable car insurance rates when you have under-estimated your driving record. If you have had an accident claim before, that means your insurance bills will rise. And this is easy to see since most insurance companies investigate for accidents claims or violations occurred within the past three to five years.

The good news is driving a car carefully may help reduce accidents and prevent the rise in your insurance bill. The longer it’s been since you last had an accident, the lesser insurance rate you will make do with. In short, maintaining a clean driving record can help reduce your car insurance premiums with margins you could never have imagined before.