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We often hear it said that people are insurance-poor, meaning a lot of their paychecks goes towards insurance bills. With auto insurance now being required in the states, a lot of the focus is on auto insurance and the high premiums. Learn what affects auto insurance rates and reasons why it may be so expensive. As a broker, we offer the ability to shop around your options more easily, with experts to help.

What Determines Auto Insurance Rates?

If you’ve ever asked an auto insurance agent for a quote, you’re probably aware that they first need some personal information about you. You may think they’re asking many personal questions, but this is because your rates are usually based on your answers. Here are some of the things that help determine your auto insurance rates:


  • Your driving history
  • Your age
  • Your gender
  • Marital status
  • Geographic location
  • Credit scores
  • The vehicle you drive
  • Your annual mileage
  • Continued insurance

Why is Car Insurance So Expensive?

Car insurance is expensive for several reasons:


“No matter how careful you are when you drive, there will always be someone else who is not paying attention or other unforeseen circumstances that will cause that terrible crash or pile-up” (Stewart Guss). While most states are moving towards “no-fault” insurance, they differ in how much in claims you receive from your own insurance, compared to how much you must pursue from the other driver’s insurance. When you are in an at-fault accident, your premiums go up because the insurance has to pay for car repairs or replacement.


Car accidents often result in lawsuits, which can cost the insurance company thousands of dollars.

Cost of Living

As long as the cost of living increases, so do auto rates.

Cost of Cars

As the cost of making and purchasing cars continues to increase, auto rates will as well.

Your Coverage

The amount of coverage you choose for liability, as well as your deductible, can make your insurance higher.

Rising Medical Costs

As medical costs increase, so will insurance rates.

More Accidents

Factors like texting and bad weather are increasing accident rates.

Can I Get Discounts?

There are many ways drivers can get discounts on their auto insurance rates. If you pay rental or home insurance, you may want to use the same company for both policies. Most insurance companies offer discounts if you bundle your insurance. Discounts may also be available if you use online auto-pay. Most companies also give discounts if you go a certain amount of time without tickets, accidents, or claims in general.

If you feel your auto insurance is too expensive despite having a good driving record, get a quote and see if we can’t save you some money. You’ll be amazed at the different rates you’ll find with a broker! Let’s face it, as long as auto insurance is something you have to have, may as well get the best possible rates!

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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
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Alliance Insurance Group
7910 Ralston Rd., Ste 7
Arvada, CO 80002

Phone: (303) 279-9700
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