Three Reasons Your Car Insurance is So Expensive

Did you know the average American pays $1,674 a year or about $140 a month on auto insurance?*

Like it or not, it’s a necessity if you own a car – however, it doesn’t have to be so expensive. Want to try and get a better rate? Here are three things that might be impacting your auto insurance premium.

The make and model of your car is a major contributing factor in how much you’ll pay for insurance. Some cars are cheaper to insure than others. Insurance companies will charge less to insure safe vehicles, as they’ll pay less for any claims you make. For example, a car with a high safety rating could get you a small discount. Likewise, some types of vehicles are statistically more likely to be stolen – so the type of vehicle you are insuring could also be a contributing factor. Rates for these types of vehicles can be more expensive to insure as a result.

The more traffic violations you have, the higher your insurance. Traffic violations and car accidents can result in a premium increase upwards of 200%, compared to what you were paying before the incident. Your premium increase will depend on a couple of things: the severity of your violation and whether you’ve been convicted in the past. Typically – traffic tickets and accidents will drop off of your record in three to four years, allowing your premium to hopefully go down again.

In most states, insurance companies will charge you more if you have poor credit or no credit history. Much like getting a loan or applying for an apartment or a mortgage – your credit score will impact whether or not you get insurance and how much you will pay. Only three states have banned insurance companies from using your credit score to factor into your insurance costs (California, Massachusetts, and Hawaii).

With that being said, there’s a few ways you can save!

Shop around! As a member of First Financial, did you know you are eligible for car insurance through our TruStage Insurance Program which partners with Liberty Mutual? Learn more and get started here, or call 855-418-6513. +

Improve your credit score! Contact us for a free credit report review. Not only could you save money on your insurance, but you could reduce the interest you are paying on loans you have with other lenders.**

*Based on a 2021 study by

**Not all applicants will qualify, subject to credit approval. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a Base Savings Account is required to establish membership.

+TruStage insurance products and programs are made available through TruStage Insurance Agency, LLC. Life insurance and AD&D insurance are issued by CMFG Life Insurance Company. Auto and home insurance are issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold, or guaranteed by your credit union.

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