Unfair Car Insurance Rates: How I’m being ripped off!

A. Steinmetz (CC BY-SA 2.0)

Many people have been waiting for the grand age of twenty-five to finally have lower car insurance rates. I am twenty-six myself, and I was very much disappointed when I turned twenty-five, as my rates didn’t go down. In fact, the cost for car insurance almost doubled! While trying to find out why, I came across some policies and statistics that companies like Esurance use.

Because of these factors and other statistics, I end up paying high insurance rates. Over $150.00 every month for the state minimum required insurance.



Factor #1: Driving History (Acceptable)

Alright I’m cool with that. Obviously a persons driving record is a major risk assessment. Previous accidents or speeding means that individual may continue to take such risks, and therefore their insurance rate should be higher. Where as someone with a clean driving record means they likely don’t take risks and are better drivers. They get lower rates because the insurance company doesn’t expect many claims.


Factor #2: Location (Acceptable)

I understand this one as well. Insurance rates are usually higher in the more densely populated areas, high rates of crime, and locations that have a high rate of claims. These statistically create more risk for the insurance company.


Factor #3: Coverage Levels and Vehicle Value (Acceptable)

Different coverage levels are ways to create balance in premium costs and future deductibles. Fair enough, and vehicle values represent how much money the insurance will have to pay out in the event of a claim. Sure, that’s valid.


Factor #4: Drivers (Unacceptable!)

Here is one area I feel statistics are not enough. I’m being punished for other peoples mistakes or risk taking. Just because other people can’t drive, or refuse to drive safely, why should I be charged more!? Until you see a speeding ticket on my record, or some other actual proof that I’m taking risks out there, I need a clean driver history discount! Just keep insurance rates low, until someone messes up. Then and only then, should they double the rates.

Excerpt from the Esurance website:

“Insurance companies charge young, inexperienced drivers— both male and female— higher auto insurance rates since they’re more likely to cause an accident or file an auto insurance claim during their young driving careers.
Likewise, mature drivers generally see auto insurance premiums increase as they get older. This is due to the higher rate of accident claims among older drivers. To help combat this expense, Esurance offers a discount to mature drivers in many states. To qualify, you need to meet the age criteria for your state and take a non-court ordered, state-approved defensive driver safety course.
Your gender also plays a role in predicting how you’ll perform behind a wheel and thus how high (or low) your auto insurance premium should be. Males between the ages of 16-25 pay more for auto insurance than females of the same age. Statistically it has been shown that males drive faster than females, and that young males generally take more risks behind the wheel.
However, male drivers can look forward to lower auto insurance rates than their female counterparts as they mature. As their driving experience grows, males will find that they pay less for auto insurance— especially with a good driving record and few to no auto insurance claims.”

Factor #5: Insurance History (Unacceptable!)

There have been times where my vehicle has been broken down for months at a time. Why should I pay out for insurance when I’m not even driving it!? Sure the insurance might cover damage on my property, but thats only if I shell out a whole lot more money for comprehensive coverage. I have been told more than once by a few insurance companies that if I turn off my coverage, even for one month, that it can make my rates go up considerably. A gap in coverage. One summer I rode my motorcycle, which is insured year round. I was driving someone elses car at that time and therefore didn’t require “car insurance”. The insurance companies don’t care that you had coverage on a motorcycle, it just doesn’t count. The only solution to this seems to be to put coverage on a car year round, even if that car is nothing more than a paperwieght. That is, if you want to keep your low rates.


Factor #6: Credit Score (Unacceptable!!!)

If you have a low credit score, they charge you more. So, if you’ve had money problems in the past or if you are a younger driver without much credit history, they will make it hard for you to get car insurance. Think about the many people out there driving without any car insurance, simply because they need to get around, get to work, or get to school. It’s bad enough when you’re trying to hold down a crappy job, but when the insurance companies want even more of your hard earned money just because you wrote a bad check or two? What does that have to do with driving!? I understand charging more for a payment plan, or wanting to be paid upfront, but if the pay in full price is just as high? What makes this fair?


We’re going to continue to get ripped off by insurance companies and here in Michigan we have it the worst, or close to it. Unless someone decides to say something about how unfair this all is and helps make a change to prevent the insurance companies from billion dollar profits, while we all try and drive safe while paying so much money for nothing. Oh yeah, and have you tried to get money back from the insurance companies in a claim? Good luck getting it back!


Photo Credit:
A. Steinmetz
CC BY-SA 2.0

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