Why is insurance more expensive for new drivers?
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Insurance companies often see young drivers as a greater risk because they are more prone to accidents and poor decision-making – both of which increase the potential cost of claims that must be paid by insurers.
Why does car insurance keep going up in Michigan?
Michigan has some of the highest minimum liability coverage requirements in the country and requires most drivers to carry at least $250,000 in PIP coverage. To see also : Is it better to stay with one insurance company?. In addition, the state has a high percentage of uninsured drivers, more than 25%, which also increases insurance rates.
Why is my drivers insurance so high?
Your car insurance can be expensive because of your driving history, location, vehicle or credit history. Insurance claims and recent violations can increase your rates for three to five years. On the other hand, it is also possible to have only one more expensive car insurance company.
Why is auto insurance so high in Detroit?
The No-Fault Car Insurance System Because Michigan is a no-fault state, drivers must have personal injury protection (PIP) coverage, which covers financial losses regardless of who is at fault in an accident. Read also : Car insurance costs are up 21%, but that’s ‘the worst thing to do’ if you’re looking for ways to save. . This required additional coverage is one of the main reasons that insurance premiums in the state are so high.