Why is my Insurance Premium So High? 8 Reasons Why You are Paying Too Much for Car Insurance

Why am I paying so much for car insurance? Well, it could be for a whole bunch of reasons. Car insurance in Pennsylvania can range from very low premiums to some of the highest in the country and PA car insurance companies have not made it easy to determine how they come up with these premiums. There are some pretty basic factors that I’ve outlined below that will definitely affect your PA car insurance in a negative way. Some of them are fixable, others may be out of your control:

Proximity to the Philadelphia area – Car insurance in Philadelphia is the highest in the state. In surrounding counties such as Montgomery County, Bucks County, and Delaware County car insurance premiums can end up being higher than average. As you get further from Philadelphia into Chester County and Berks County, car insurance premiums will start to really decrease.

Low Credit/Insurance Score – clients don’t like to hear that their credit score is affecting their insurance premiums, but it’s a fact, and every company uses it in determining premiums. Insurance companies have found that credit score has a direct correlation to the profitability of the business they write. Some companies have more favorable rates for those with poor credit scores while others will essentially deny coverage.

Claims – Whether it’s a small claim or a big one, all claims can affect your ability to get lower rates when shopping. Even if the insurance company cannot “surcharge” your policy for a claim, PA car insurance companies can move you to a less favorable rating tier or remove loss-free discounts.

Young Driver – Will my insurance get cheaper when I turn 25? Short answer… No. This is a major misconception in the car insurance industry. There is no specific discount when you turn 25. In reality, your rates will get progressively better as you age. In many cases, you may need to shop your insurance to see any significant change in premium. Some car insurance companies are more favorable to drivers in their 20s. No companies are favorable for drivers in their teens.

Older Driver – The reverse is also true… somewhere around age 60, you can expect to see your insurance premiums start to creep up. Around age 70 or 75, companies may even require that an extra medical form be filled out.

Home and auto policies are separate – If you have your home and auto insurance with different companies, you may be missing out on significant discounts. It’s very rare that I find a situation where this makes sense.

Prior low limits of insurance – I’ve mentioned this in other articles, but low limits of insurance don’t always mean the lowest prices. Rather than carry the state minimum coverage, get quotes for higher limits. You might find that it’s not as expensive as you thought. It might also open up new, more competitive markets that aren’t looking to write low limits. This will also help you secure better quotes in the future.

Been with the same company for years – This is my favorite… When someone tells me they’ve been with the same company for 20 years. As an agent, I can appreciate this kind of customer loyalty. However, these are the clients for whomI end up saving the most money… sometimes thousands of dollars a year. This is where the value of an independent agent comes in. As an independent agent, I have the ability to shop your insurance with numerous companies to make sure you are still getting the best premium. Agents for companies like State Farm and Allstate are locked in to one specific company, which isn’t doing you any favors. Most customers are looking to be loyal to their agent, not their insurance company (there’s a difference). Why not have one that gives you more options?

 

Call Risk Averse Insurance in Media, PA for a quote on your PA homeowners insurance and PA car insurance. We can also provide insurance for motorcycles, RVs, classic cars and any other “toys” you own.

Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.

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Don and Megan were extremely helpful and a pleasant to work with. Highly recommend. They went above and beyond to get me insured quickly and at a really good rate.
Jojo Anaya
Jojo Anaya
Our construction company recently switched over to Risk Averse Insurance. We moved all of our policies over to this company. Our agent, Don Blizzard, was amazing! He was upfront and explained everything to us so we understood what we were getting. He made the process very easy and the turn around was very fast! There were no issues! Not only did we get great deals, we got better coverage than we ever had. I would definitely recommend this company! They are the best!
Kelly Robb
Kelly Robb
I recently switched to this company this year for all my business insurances and couldn’t be happier. The service my agent Don Blizzard provides is amazing. I started recommending to all my colleagues and family. Definitely worth reaching out for quotes if you’re a business contractor. Thanks again team
Louis Litwin
Louis Litwin
Just had to file a big claim for a stolen vehicle full of all my professional equipment----the policy they wrote allowed me to get real value back for my stolen equipment so I can come back even stronger!! Big thanks to my agent Don Blizzard for doing such a great job!
Ed Sheridan
Ed Sheridan
Don Blizzard is my agent with Risk Averse and he is absolutely the best. He is quick to respond with any questions or concerns I may have, gets me my certs way faster than expected, and is great at explaining things in a way that a layman can understand. I highly recommend Don and Risk Averse Insurance.
Sean Carter
Sean Carter
Don is a great insurance guy he dose my personal and business insurance every time I call he answers and takes time to answer all my questions and guides me in the right steps
Blaine Kunselman
Blaine Kunselman
I have been using them for over 5 years now and I'm very happy with the service; they always do the best to get me the best and current up-to-date deals and excellent to deal with. I recommend.
Chauncey Brown Jr.
Chauncey Brown Jr.
Ive worked with Don for the last few year's. When I started my buisness I knew I needed help and didn't know where to start.I knew I needed an absolute beast of an agent and every other owner/ operator I talked too said if "You don't have Don Blizzard as an agent then you dont have the best agent. "He took a chance and helped me grow my buisness to where its at today. Riskaverse is the absolute best and since starting my buisness all my insurance is through them with help from Don Blizzard. He has a way to explain it to me where I understand my coverage and exposure and the commercial side including Meghan are the absolute best at getting COI'S sent to potential clients within minutes of requesting the copy.Hands down I only go where Don goes and I know whatever policies are written and where my coverage goes my loyalty will always lay with Don.He took a chance and grew with me and I'm forever grateful to all the staff at RiskAverse for being family and buisness friendly and not looking at me as a number or a client but actually caring and finding us the best for which suits our needs.#TeamDonBlizzard #TeamRiskAverse#TeamMegan
James LeBoon
James LeBoon
I work with Don. He has helped lots of my family and friends for their business and personal insurance. He is super responsive, honest, and hardworking to make sure you are fully taken care of in every aspect of your policy. He cares a great deal about each unique situation. I am fully confident anytime I refer Don.
Molly Eckman
Molly Eckman
Anytime I’ve needed assistance, the staff has always been accommodating. I have, and will continue to refer people here.
Allison Parasink
Allison Parasink
The best I've ever used. Don and the team make u feel protected and being able to lay your head on your pillow at night knowing you are protected is worth more than gold.
Dolans Bar
Dolans Bar
Don and his team have been great to work with and always very accessible which is important when dealing with the stress of getting your insurance set up and doing it right. Highly recommend!
Ryan Callahan
Ryan Callahan
I had the best experience. Don helped me with both auto and homeowners insurance in getting us the best price with great service. Highly recommend!
Gloria McAllister
Gloria McAllister
Fred Burns is the absolute best! Highly recommend!
joanne kelly
joanne kelly
Highly recommend!
Jennifer McGonagle
Jennifer McGonagle
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