Why Did My Car Insurance Go Up? (2024)

Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost. Know that insurance premiums aren't raised on a whim, and the reason for a car insurance rate increase is almost always tied to insurance risk.

5 min to read

Reasons for a car insurance rate increase

If you're wondering, "Why is my car insurance so high?" you may have experienced a car insurance rate increase. While you can influence some car insurance rate factors, some reasons that are beyond your control can also lead to a rate increase. (The same goes for factors that can lower your car insurance rate.)

Here are some of the most common reasons for your car insurance rate to go up:

  • Speeding tickets and other moving violations

    Violations on your motor vehicle report, especially a DUI or multiple speeding tickets, tell your insurance company that you're more likely to have an accident than a driver with no violations. The more violations you have, the higher your risk to file a claim — resulting in a rate increase. Even a minor moving violation ticket could increase your car insurance rate. The good news is, insurance companies often don't increase your rate due to a non-moving violation like a parking ticket.

  • Accidents: Both at-fault and not-at-fault

    Just like with violations, at-fault accidents on your driving record often indicate you're at risk for more, and insurance companies will price you accordingly. You may ask, will my insurance go up if I file a claim for an accident that isn't my fault? In some cases, yes — even accidents you didn't cause can increase your rate in states that allow it, as insurers have data showing that some drivers have a propensity for not-at-fault accidents.

  • Comprehensive claims

    Depending on your insurance company and your state, your rate may increase for damage-related incidents that were out of your control. Your rate may go up if you have comprehensive auto coverage and file a claim for incidents like car theft and vandalism, hitting a deer, fire, glass breakage (including a cracked windshield), hail/weather-related damage, and other acts of nature.

  • Adding vehicles and drivers

    If you purchase a more expensive car, your rate is likely to go up as your new ride may be more likely to be stolen and cost more to repair or replace than your previous vehicle. Adding a new driver to your existing policy could also drive up your price, especially adding teen drivers or someone with a poor driving record.

  • Claims in your area

    As unfair as it may seem, you may experience an auto rate increase due to insurance claims data in your ZIP code. If your area has a high rate of theft, accident, or weather-related claims, it becomes riskier for an insurance company to cover drivers there. That risk can lead to an auto insurance price increase, even if you have a perfect driving record.

  • Moving

    Changing the address where your car is "garaged" (kept overnight) is a rare instance where your rate could increase mid-policy without making changes to your coverages, vehicles, or covered drivers. If you're moving out of state, you'll need a new auto policy. However, if you're remaining in the same state, your rate could go up based on claims in your new ZIP code.

  • Age

    While senior car insurance discounts may be available depending on your insurer and state, your rate could increase around the time you reach your mid-70s. From a risk perspective, insurance companies often view drivers in their 70s, 80s, and 90s as riskier than they were as middle-aged adults, but likely still not as risky as teens (unless you start filing more claims or have an increase in other risk factors).

    Learn more about how your age can impact your insurance rate.

  • Lapse in insurance

    If you're looking to reinstate a policy or start a new one and are coming off a lapse in car insurance coverage, you might be charged more for insurance.

  • Loss of discounts

    If you no longer qualify for discounts that are based upon having no tickets or accidents on your driving record, your auto rate will likely increase. Not only could your rate go up due to the incident, but you could also lose associated discounts. For example, if you had a discount for not being involved in an accident for the past three years, you'll no longer qualify for that discount after getting in an accident. Other common discounts you could lose if your situation changes include ones for being a homeowner, going paperless, and bundling home and auto policies.

    If you've lost a discount, there may be other ways to lower your policy's rate. Check out other tips on how to get cheap auto insurance.

Is it normal for car insurance to go up for no reason?

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.

Why does my car insurance keep going up?

If you notice your car insurance keeps going up each time you renew, it could be from rising car insurance rate trends over time. These are often caused by factors outside your control, like increases in the costs to repair and replace vehicles or increases in claims and claim severity in your area.

Car insurance can also keep going up because of factors specific to you that have changed from period to period (like your location, age, claims history, driving record, car make and model, etc.). Keep in mind that car insurance typically increases not right when you make a change but when you renew your policy. You may need to think back to trace all the factors that may have changed in recent years.

Why did my car insurance go up after renewal?

Car insurance rates typically increase when you renew your policy, not immediately after there's a change to your rating factors (other than moving and adding a car or driver). Keep in mind that auto rates can go up based on factors out of your control, such as if claims increased in your ZIP code.

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Why Did My Car Insurance Go Up? (2024)


Why Did My Car Insurance Go Up? ›

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.)

Why did my car insurance go up when nothing changed? ›

Increased car repair expenses for parts and labor and higher replacement costs can lead to insurance rate hikes. Additionally, economic factors, such as inflation and changes in interest rates, can impact insurers' investments, prompting them to adjust premiums to maintain their financial stability.

Why is my car insurance suddenly so high? ›

Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.

Why did everyones car insurance go up? ›

As vehicles become more expensive to repair and replace, car insurance rates climb as well so insurers can cover future claim payouts.

Why is my insurance higher than the quote? ›

What are the reasons why your insurance premium might cost more than your quote? Because insurance quotes are usually based on approximate information, there is often a difference between your initial quote and your finalized premium.

Does credit score affect car insurance? ›

On average, drivers with poor credit pay 118 percent more for full coverage car insurance than those with excellent credit. California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.

Why doesn't my insurance go down? ›

Rating factors are the characteristics on which your policy is priced, like age, gender, driving history and insurance history. So, for just one example, if your mileage has decreased but you've gotten tickets or had an accident in the last year, you'll likely still see a rate increase.

Why did my auto insurance go up in 2024? ›

Increasing Car Repair Costs

Expensive cars like luxury vehicles and high-end sports cars — those with higher repair costs to begin with — were always pricier to insure. But now that repair costs have increased across the board, insurance companies have begun to quickly hike rates to keep up.

What is a factor that can cause your car insurance to rise? ›

Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age and your driving record.

How can I lower my car insurance premium? ›

Here are some ways to save on car insurance1
  1. Increase your deductible.
  2. Check for discounts you qualify for.
  3. Compare auto insurance quotes.
  4. Maintain a good driving record.
  5. Participate in a safe driving program.
  6. Take a defensive driving course.
  7. Explore payment options.
  8. Improve your credit score.

Why is car insurance so expensive lately? ›

A confluence of forces were to blame: The Covid pandemic disrupted supply chains, pushing used car prices to record highs and making spare parts hard to get; out-of-practice drivers emerging from lockdowns caused more severe wrecks; and technological advancements like motion sensors made even the simplest parts, like a ...

Why would a car be more expensive to insure? ›

Cars with low safety ratings, high repair/replacement costs, more insurance claims, and a higher likelihood to cause damage to others are more expensive to insure, on average. These cars tend to cost insurers more in claims costs, and insurers price policies accordingly.

Why is my car insurance so high in Geico? ›

The car you drive, how often you drive it, and where it is kept are all factors used to determine your rate. A car's make and model help determine: Expected repair costs. If theft rates are higher for this vehicle.

Can you ask insurance to lower price? ›

States regulate car insurance costs, so you can't ask your insurer to give you a lower price. However, that doesn't mean that you are stuck with the quote a car insurance company offers.

Is insurance cheaper if your car is paid off? ›

Car insurance premiums don't automatically go down when you pay off your car, but you can probably lower your premium by dropping coverage that's no longer required. Banks and financing companies who loan you money for your car are called lienholders.

How much does car insurance go down after 1 year no claims? ›

In many cases, your insurance will go down by 5-20% in the first year of no claim, depending on your insurer. After the first year, this discount increases each year, usually by 5%, if you don't make a claim. But it only increases up to a maximum discount, usually 50-60%, and a number of years — usually 5-6 years.

Can insurance raise rates in the middle of a policy? ›

Yes, if you have filed multiple claims or received a traffic violation, your car insurance can go up mid-policy due to the increased risk you pose to the insurance company. The best auto insurance companies are bound by the terms of their policyholders' contracts.

Why is my Geico insurance all of a sudden so much higher? ›

Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.

What type of driver generally pay more? ›

Your Driving History

Safe drivers are generally less apt to get into accidents, so they typically pay less for auto insurance. Conversely, you might pay more for car insurance if you have a history of moving violations for dangerous habits such as speeding or reckless driving.


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