It is no secret that car insurance premiums are expensive. The possible explanation of the surging of insurance rates for this undertaking is that the company you apply from gives you the best viable coverage you need for your vehicle and yourself.

Most car insurance companies use the 100/300/100 principle wherein $100,000 for bodily injury, $300,000 for accidents and another $100,000 to anything property-related are allowed under your car insurance premium. This may be a skyrocketing amount given the financial woes each person has to face.

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But the coverage is enough to make sure that you will not be at a loss when something unfateful happens to you during your time on the road (knocks on the wood). Most cities in progressive countries like the United States require its citizens to get car insurance because it is mandated by law. But what makes car insurance very expensive? Here are some reasons.

Type of car being insured

If you need to insure a high-end car, expect that your insurance premium will also be pricey. Included in the most expensive car to put into insurance are limousines, sports cars, muscle cars, and the likes.

Age of the car

Car insurance companies likewise consider the car’s age when giving the exact quote. In principle, the older the car, the more expensive it is to insure. The reason for this is that older cars are more prone to breaking, thus more money is needed. It is not only older cars which are costly to insure. Those which are tagged as vintage autos are also pricey because its parts are specialized and harder to find in the market.

Record of the driver

Another factor that car insurance companies consider is the driver’s driving record. If they see that you had previous accidents, your premium will be more expensive. If you have a clean record, meanwhile, this gives you leverage to having lower premium rates.

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