Why Did My Car Insurance Go Up?

Several factors can cause your car insurance premiums to increase. Here’s a breakdown of the most common reasons:

1. Changes in Your Driving Record

• Accidents: Even minor accidents can hike your rates, as insurers see you as a higher risk.
• Traffic Violations: Speeding tickets, running red lights, and other citations make you look like a less responsible driver.
• DUI/DWI: A DUI/DWI conviction significantly increases your rates, often for several years.

2. Changes in Your Personal Circumstances

• Age: Young and inexperienced drivers, or older drivers, pay more than those in their prime driving years.
• Location: Moving to an area with higher crime, accident rates, or severe weather can lead to higher premiums.
• Marital Status: Getting married can sometimes lower your rates.
• Credit Score: In many places, a poor credit score can raise your premiums.
• New Driver on Your Policy: Adding a teen driver, for example, increases your risk exposure.

3. Changes in Your Vehicle or Coverage

• Getting a New Car: More expensive, sportier, or theft-prone cars cost more to insure.
• Increasing Coverage: Adding options like comprehensive or collision, raising deductible limits, or wanting more liability coverage will raise your rates.

4. Industry-Wide Trends

• Inflation: Rising costs of repairs, medical care, and litigation can drive up premiums overall.
• Increased Claims: More accidents and greater severity of claims in your area can make insurers raise prices for everyone.

What to Do

• Shop Around: Compare quotes from different insurers regularly.
• Ask About Discounts: Check for discounts for good students, safe driving courses, bundled policies, and more.
• Drive Safely: The biggest thing within your control is to maintain a clean driving record.
• Consider a Higher Deductible: Increases your risk, but lowers your premiums.
• Improve Your Credit Score: If possible, doing so can help long-term.

Important Note: It’s always best to contact your insurance provider directly to determine the specific reasons behind your premium increase.