Car insurance companies are effectively gambling on drivers. They try to charge you a fair price based on your likelihood that you’ll make an insurance claim. If you’re a perfect driver who never gets in an accident, the insurance agency will never need to cover your claim. They can charge you a very low rate with no risk to their business.
On the other hand, if you get in lots of accidents, car insurance companies will end up shelling out a lot of money to cover them. They pass these costs on to you, so you have to pay significantly higher premiums for your insurance every month.
But don’t worry! If you do your research and exercise smart consumer practices, you can still find very competitive rates that get you on the road affordably.