Why is car insurance so expensive?

T Stone

bad or high risk drivers, number of people that don't have insurance yet drive, the cost of cars and the labor cost to repair. the good drivers who follow the laws and drive safe that have no claims have to pay for those who pose a risk for everyone on the road. Insurance companies have to pay out millions a year to policy holders for claims caused by weather and drivers that have no insurance yet were at fault. I can see paying when weather strikes ..but if everyone had insurance many would have lower rates. I just believe if a person goes 2 to 5 years with out a claim they need to give half of the prems back or give free coverage for half the amout of time they went with out a claim min 2 to 5 years.

Dick Skinner

Because you HAVE to have it. Insurance cos know that the law requires you to ante up, so they know theaw forces you to ante up to an INFLATED price. Don't believe the people who say "more coverage means more claims. That's B.S. Fact is that most people don't have accidents. That means? $$ for the insurance people.

Sebastian L

Because businessmen are - in general - unscrupulous greedy money-grabbing ***** *** **********. No offense to anybody who runs a business, my dad does, but the big corporate CEO's just aren't satisfied with the millions of dollars they already have.

Scott H

Many reasons:

Many people drive without insurance. This raises the rates for everyone.
Personal injury lawsuits. "In a wreck? Need a check?"
It's expensive to repair modern vehicles.
Less experienced drivers pay more than experienced drivers with a history of safe driving.

the list goes on and on...

vgordon_90

Most insurance companies charge more for people under the age of 25 and especially in the 16-21 age group. These groups have on the average, more accidents.
Also, if you are driving a newer vehicle, it costs more to repair than an older vehicle.

b/c of all the law suits. if you had a no-fault policy then wnen someone hit you your ins. would pay for your damages and theres would pay for there so that noone can sue anyone but people want the fastest way to make a buck so the sue!

My Thoughts Exactly

if your young from 16 to your 20s the insurences think your most likely to get in an accident

its higher too if you have a new car...becuause it will cost more to repair it if you do get into an accident

Brian W

Beause there is a lot of people on the road that don't know how to drive properly without getting tickets, slamming into other cars, poles and walls. That is just my observation.

Tiny's Momma '92

Because cars are becoming more expensive.
The main cause of insurance premiums being so high is simple: Insurance Fraud. People claiming to be hurt when they are not, and finding doctors and lawyers to back up their claim.

Richard K

If it were not legally obligatory, car insurance would be much cheaper.

The insurance companies are not so much in competition as collusion to keep premiums as high as possible.

Naturally, one's age and experience, together with the power and value of the car, are considered when calculating premiums.

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