Have you ever been surprised by how much you need to pay for auto insurance? Maybe your premium spiked since your last renewal and you can no longer afford the cost. Finding a solution to your high payments may ease your frustration. Maybe you will even discover some discounts that can help you get cheap car insurance.

Why is my insurance so high?

Why your insurance premium is too high What you can do about it
You bought a new car

Since newer cars cost more to replace and often have technology that costs more to repair, you'll likely see higher insurance costs. Talk to your agent and ask for a review of possible discounts, to make sure you're getting all the ones you should.

If you haven't bought your new car yet, check out the cheapest cars to insure.

You caused an accident If you recently caused an accident, your car insurance could increase at renewal time. Your best solution is to try to keep a clean driving record going forward. You may also want to compare quotes to see if you can get a lower rate from another insurer.
You're paying for a lot of coverage Do you know what types of car insurance you're paying for? You could purchase only the mandatory state minimum car insurance. If you have an older car, you could consider dropping comprehensive and collision insurance.
You had a gap in coverage If you've ever driven without car insurance, that's a gap in coverage. When you shop for a new policy you'll likely get dinged by higher rates.
You've had moving violations Speeding tickets, reckless driving, DUIs and other violations typically lead to high insurance rates.
You moved Any move could potentially mean a rate increase, especially if you're moving to an urban area with higher accident and theft rates.
You aren't bundling your policies If you plan to purchase auto insurance along with home, renters or life insurance, consider bundling them to save money. Purchasing home and auto insurance from the same insurer often brings a discount.
You're an inexperienced driver New drivers get higher premiums, no matter what their age. Focus defensive driving and staying alert in order to keep accidents off your record.
Your credit score is haunting you Insurers have found that drivers with poor credit scores are more likely to file claims. Work to improve your credit score and your insurance rate should drop.

These states prohibit insurers from using credit in setting car insurance rates

  • California
  • Hawaii
  • Massachusetts
Your deductible is low If you have collision and comprehensive insurance, you'll pay less for a high deductible. That's the amount deducted from a claims check. But some drivers prefer to have high insurance premiums and low deductibles. If you don't feel the same way, this may be worth changing. Just be sure you have the cash on hand to pay a bigger share if you have a collision or comprehensive claim.
Your license was suspended A suspended license is an indicator of a high-risk driver who is more likely to get into accidents and file claims. Your best bet is to wait out the rate increase.