Car insurance should not be confusing, but many Americans don't understand why their rates are so high and don't know how to bring them down. There are a lot of different variables at play in the price you pay. In this article, we discuss five reasons why you might be paying such a high premium and how we can help you lower it.

1. Credit Score Impacts Your Rate

Many drivers don't realize that their credit history impacts their auto insurance rates. Late or missed payments on your credit cards, carrying a high credit debt, and having high interest loans can all lead to a poor credit score, which will affect your insurance premium in the long run. Having an automated payment plan to pay off your credit card debt and loans will greatly lower your auto insurance rates when it's time to make the switch.

2. Staying With the Same Insurer

Staying loyal to auto insurance companies doesn't always mean lower rates. Many providers raise their prices over time. Shopping around for better rates can help lower your rate, especially if you develop a close relationship with a local insurance company that wants what's best for you.

3. Paying for Different Coverage Separately

Most people are covered by different types of insurance companies, but they pay them separately. According to Bankrate, the national average cost of full coverage auto insurance is $2,692 per year, while minimum coverage averages $808 annually. Finding auto insurance companies that offer bundles with homeowners insurance can help you save a lot of money in the long run.

4. Job Title and Education Affect Your Premium

Something as simple as how you list your occupation or not having a degree can drastically affect your insurance rate. Making sure you professionally list your job title can help you save on your premiums.

5. Vehicle Use Classification

If your car is used for business or professional use but is listed as personal use, it could be costing more than it should. If your insurer finds out your vehicle is being used for business but is misclassified as personal use, it could lead to denied claims or even policy cancellation. On the flip side, being upfront with auto insurance companies and choosing the correct classification can open the door to more tailored policies and potentially better rates that fit your actual driving habits. It's important to be accurate when stating how your vehicle is used so you’re both protected and not overpaying.

Understanding what’s driving your auto insurance rates is the first step to lowering them. From your credit score to how you list your job title or use your vehicle, small changes can lead to big savings. You shouldn’t have to overpay just because of things you didn’t know. Let us help you take back control. Get a free, no-obligation quote and see how much you could be saving by switching to a provider that works for you, not against you. Contact Campbell Insurance Agency today!