Why is my auto insurance so expensive?

[oldmanwinter]

I was discussing insurance with my brother and discovered that I am paying roughly $200 more per year than he is. It's not huge amounts of money, but:

I am 26, he is 22. I have a 2000 truck, he has a 2006 car. He drives daily, I might once a week. His car is easily worth 1.5-2x more than mine. We both have clean records and live in the same area.

We are insured with different agents. However, I talked to his and they wanted considerably more than what I'm paying now. I'm curious as to what happened to the big drop after 25 that we were supposed to be looking forward to? Is it just because I have a truck?

[urban_achiever]

It could have something to do with your zip code. Certain zip codes are higher than others. If you live in an urban area, where covered parking is more limited, you may see a higher premium than someone who resides in suburban or rural areas. In an urban area, your car is more suseptible to theft or vandalism. Also, population density affects traffic, which also presents a loss exposure in the form of increased chance of getting into an accident.

It seems like the difference is about $17 per month...It may be that he has an additional discount from his insurance company - these can be anything from term as a customer (your insurance company will sometimes give you discounts for sticking with them for a long term), fuel economy, or some other unrelated reason...

[steph78]

Make sure you are comparing quotes for the same coverage. Also, are you comparing for the same deductible? If you have a higher deductible it will often lower your rates quite a bit. ALSO, if you have renter's or homeowner's insurance with the same company it can result in big discounts

[blueyes]

Also, check your driving record: my fiance just found out last night that he's been carrying an at-fault accident that never happened since 2004. He's going to contest it; it may be worth it to call your insurance company and find out what THEY see on your record.

Realize that they will look back three years for accidents (any kind) and five years for violations (speeding, moving, etc.). Just because your state may expunge them from your record in two years (like here in Maryland) doesn't mean that the insurance companies can't find them.

[redav]

Also consider your credit history. A lower score from higher balances, missed payments, or even more store accounts can have a large effect.