Why are insurance rates so high?

Question

I am 18 and drive and old 1990 Geo Tracker. I have never been pulled over, given a ticket, warning, or fix-it ticket. I have been driving for 4 years (since I was 14 with a school permit) and even then I didn't get pulled over. Why are insurance rates for me so unbelievable?

Answer 1

because you are 18. it should drop a lot as you get older

Answer 2

New drivers are considered high risk.  It should go down each year.

It also has to do with all the uninsured motorists out there.  Insurance companies pay out big bucks on these claims.

Answer 3

Insurance rates are based on several different factors. Your age or years of driving experience, credit score, where you live (big city vs. country) and they type of vehicle you have and how it is rated on your policy (work/school, business or pleasure). You have to keep in mind that the insurance company charges you based on the level of "risk" you are. Meaning how likely is it that you may have an accident. Some of the way rates are determined in based on known statistical facts regarding your drivers. Additionally, even though EVERYONE who owns a vehicle is suppose to carry insurance, there are a lot of people who fail to do so. When those people have accidents, often with injuries, it because the responsibility of the rest of us who are paying for coverage to foot the bill. This is also true for those who have good coverage but have accidents. You have to think of insurance as everyone pooling their money together. Insurance companies have hundreds of claims of month and have to pay out damages on these claims. The more claims there are then the more money that comes out of the pot, in order to make sure there is enough money to keep paying claims sometimes there have to rate increases. Additionally, just as the cost of gas goes up, so does the cost of vehicle parts and labor. All these things have to be taken into consideration when an insurance company is determining rates. The best thing you can do is to continue to be a safe and prudent driver and find a carrier that will reward you for your good driving ability.

Answer 4

Normally Insurance premium is called based on the Car & Driver. If the car is new then the COMP & COLL will be high if the car is old the COMP & COLL will be less depending upon the deductible you have choose n. Since your car is too old you can take the state minimum insurance coverages.

Age is important factor for calculating the Insurance, normally teen drivers tend to drive fast that is the assumption taken by Insurance companies irrespective of driver.  

As for as vehicle is concerned, the following parameters are taken into consideration.

VIN Number (Includes Year, Make & Model),

Physical Damage Symbol - derived based on VIN Number,

Stated Amount if any,

Garage Location & other technical terms

As for as driver is concerned, the following parameters are taken into consideration.

Age,

s*x,

Marital Status - If single more premium, married less premium,

Years Licensed

Further to that, If your have sibling who operate your vehicle they will be taken into consideration for insurance premium calculation

Till you reach 25Yrs your premium will be little higher than the normal person.