August 15, 2023


Why is Car Insurance so Expensive?

You're not imagining it, car insurance rates have risen by 17% in the first half of 20231, with another 4% spike looming on the horizon. These additional costs can be a real pain, especially for folks who are already tight on money. 

But don't stress! This blog is here to lend a helping hand. We've got the inside scoop on all the factors that play into those sky-high insurance rates. Plus, we'll show you how to keep those costs as low as a car idling in neutral, and how you could even get zero down auto insurance. 

Here at OCHO, we make it easier for you to budget by splitting your payments. You can pay us every two weeks to make sure you never miss a payment.So buckle up, follow our tips and get ready to dive into the wild world of car insurance. You're in for a ride!

Zooming Insurance Costs - Why Rates Keep Rising

Rising car insurance costs are driven by increasing repair, labor, and medical expenses, along with more frequent and severe crashes. Record personal injury judgments and vehicle thefts add to insurers' burden. 

Insurance companies are also desperately trying to cover their losses for climate-change related claims. According to the Washington Post, In Florida hurricane-linked premiums have soared to 88 percent. While “In Colorado, car insurance premiums have increased 52 percent since last July as blizzards, tornadoes and hailstorms have led to an increased number of claims.”2

Insurers also look at a few things that you can control: where you live, how you drive, your credit score, if there are teen drivers in your home, and the kind of car you own. All these factors help them figure out how risky it is to insure you, and that's how they decide on your premiums.

Strap in for upcoming changes and get ready to budget, as insurance prices have a delay due to state approval processes, and there's no sign of the costs reducing. There are still options available - zero down car insurance provides a more flexible payment structure, allowing drivers to spread out their insurance costs over time. Let's get into the details and see how you can take back control of the wheel.

Age Before Beauty: Why Young Drivers are More Expensive

Young drivers often pay higher car insurance rates because they have less experience on the road. Insurance companies see these drivers as riskier to insure because they haven't developed the necessary skills and judgment yet. So, if you're a new driver, you may pay more for insurance compared to someone with more experience.

Understanding how inexperience affects insurance rates can help young drivers make better decisions and find affordable coverage. By recognizing the higher risk associated with being inexperienced, you can take steps to reduce it.

This might involve taking a defensive driving course or using a telematics device that monitors your driving habits. These proactive actions show insurance companies that you're committed to becoming a safer driver, which could lead to lower rates.

Steering Clear of Risks: How Driving Behavior Affects Costs

Driving recklessly, speeding, or driving under the influence are high-risk behaviors that can greatly affect your car insurance costs. A minor speeding ticket can set you back an extra $409 while drinking under the influence will cost an estimated  $1,461 more per year.3 Insurance companies see these behaviors as red flags that indicate an increased risk of accidents. As a result, they adjust premiums accordingly to protect themselves from potential claims.

If you want to keep your insurance costs low, it's crucial to promote safe driving practices and avoid high-risk behaviors. By obeying speed limits, driving responsibly, and never getting behind the wheel while intoxicated, you can reduce the likelihood of accidents and keep your insurance premiums in check.

Remember, safe driving not only protects you and others on the road but also helps you maintain affordable car insurance coverage. So, buckle up, stay focused, and drive responsibly to keep your costs down.

Location, Location, Location

Living in an area with expensive insurance rates can drive up the overall cost of your car insurance. It's all about location, my friend. Living in busy areas can impact your car insurance rates. More people means more accidents, traffic issues, and theft risks, which can lead to slightly higher premiums.

Keep reading to discover more tips and tricks to keep those costs low!

A purple car illustration

How Your Car Model Affects Insurance Cost

Is your car a speed demon with a racing-spec engine or packed with modified features? If so, you might expect higher car insurance costs. Your choice of car model can impact how much you pay for auto insurance. Modified cars, pickup trucks, and sports cars are more likely to be stolen or damaged, meaning your insurance costs will be higher. Insurance companies look at the risk involved in insuring different types of vehicles.

If you're on a tight budget, it's important to think about how your vehicle choice will impact your insurance rates. Choosing a car that fits your budget and coverage needs can help keep your insurance costs down. Finding a balance between a car that meets your needs and one that doesn't cost a fortune to insure is key, especially when there are zero down car insurance options available.

Do Red Cars Cost More to Insure?

You might be familiar with the notion that red cars cost more to insure. But, as per the Insurance Information Institute, the color of your car has no impact on the cost of car insurance. When you're looking for car insurance, it's important to think about many factors that affect the cost. Several elements contribute to the cost of your auto insurance policy. These factors include the make, model, body type, engine size, and age of your vehicle. Additionally, insurers consider the car's sticker price, repair costs, safety record, and theft probability. The driver's age, driving history, and occasionally their credit history are also taken into account by insurance providers.

Credit Score & Insurance Costs: What's the Connection?

Having a low credit score can affect your car insurance rates. Insurance companies view credit scores as a measure of your financial responsibility and reliability. If you have a low credit score, you may be considered a higher risk, resulting in higher insurance premiums. 

But don't worry, at OCHO we've got your back! Every on-time payment you make with us can help build your credit score! Double win! 

By taking steps to improve your credit, you can potentially lower your insurance premiums. 

With us, you can apply to lower your down payment and save on average $200! Yes, you heard that right! And guess what? You might even qualify for a fantastic $0 down option! 

At OCHO, we believe in you, so we finance 1 out of every 2 customers’ down payment! So why wait? Take the leap and apply now. Let's make car insurance affordable and rewarding for you! 

Drive with confidence, with OCHO insurance!

Choosing an Affordable Car Insurance Company

We know how crucial it is to find car insurance that fits your wallet without sacrificing essential coverage. Good news - it's totally possible! 

Here's a simple yet powerful tip: compare quotes from different insurance providers. By doing this, you can find the most cost-effective option that perfectly suits your needs. For good drivers like you, on average, rates can range from around $1,000 per year with the most affordable companies to over $2,000 per year with the more expensive ones.3

At OCHO, we do this for you! All you have to do is give us some important details, and we will do the hard work for you.

But affordability isn't the only thing that matters. It's equally important to look into the reputation, customer reviews, and financial stability of different insurance companies. This way, you'll make a well-informed decision, steering clear of any future unexpected expenses. Let's hit the road with confidence and peace of mind!


Understanding why auto insurance costs are so high, including factors like where you live, your driving record, credit score, young drivers in the family, your car type, and how you drive, can be a big help in managing your expenses. 

If you want to explore ways to save, you might even consider looking into options like zero down car insurance. By figuring out the reasons behind high insurance costs, you can protect your money, improve your credit score, and find coverage that fits your needs.

Drive safe, save money, and enjoy peace of mind!