Why Does My Insurance Cost More Than My Agent Said It Would?

You’ve been speaking with your agent and received an estimated price quote for your insurance policy, but when you go to purchase it you find that it cost more than you expected. While not always as clear cut for every situation, an explanation for the difference could be that there was an error in the information you supplied to your agent. The information you gave may not have matched your actual driving record or other factors that could affect your cost, which leads to a higher quoted policy. That is why it is very important you provide accurate information on your application to receive a precise quote.

The expense of insurance is a concern to everyone and understanding the reasons that could make your coverage cost more is important. Although policies are based on a variety of factors, your driving history will be a major part of your rate. Other factors such as age, gender, marital status, vehicle type and where you live play a role.

Here’s brief review of some of these factors:

  •  Age: Although you have no control over this, rates are typically higher for drivers under the age of 25 and over 75. However, once you are 25 or older, you rates can significantly lower because you are seen as less of a risk.
  •  Gender: It has been found that accident rates are higher among males, especially young, single males, so it will cost more to insure you if you are in this group.
  •  Marital status: If you are married, you can also significantly lower your rate
  • Vehicle type: Usually, the more expensive a car is, it will likely cost more to insure. Safety rating and features, vehicle size, age of car, cost of parts and likelihood of theft will also affect your rate.
  • Location: The area where you live can also affect your policy rate. Living in the city will typically cost more to insure because there are more cars on the road, traffic and people, so chances of you being involved in an accident are higher. Also, opportunities for vandalism and theft are greater.

Other factors that can affect your rate range from credit score, profession, duration of your policy and amount of your deductibles. By reviewing what you do have control over before consulting your agent for a quote, you can be well prepared and assured your policy will not cost more than you expected and will still fit within your needs and budget.