Why Do My Auto Insurance Rates Go Up?

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Over time, auto insurance rates tend to rise. It’s inevitable. Some rate changes you have absolutely no control of, while some, on the other hand, are completely on you. Let’s take a look at some of the things that may cause your insurance premiums to increase over time:increasing insurance rates


It’s OK to get into an accident every once in a while, especially if the accident is not your fault. Most insurance companies understand this and will not raise your premiums based on an accident you are ruled to be not at fault in. In fact, many insurance companies have “accident forgiveness” programs where they will even “forgive” you for your first accident even if it was your fault.

It’s when you make too many claims over a short period of time that really raises a red flag with the insurance companies. If you are ruled to be not-at-fault in these accidents, the insurance companies will tend to be more lenient with your rate changes. If you are ruled to be at-fault, you can definitely expect your insurance premiums to rise.

Change In Local Laws

Many states, like New York, have laws regulating the insurance industry. These laws impose limits on how much car insurance companies can charge for premiums. These are put in place to protect the consumer from outrageous insurance bills.

Sometimes, however, legislation may get passes and these laws may change. Because of this, through no fault of your own, you might get stuck paying higher insurance rates.

Credit Score Issues

Auto insurance companies do look at your credit score when determining your premiums. If your score drops, you might see your insurance bill reflect your new credit standing. The reason insurance companies look at your credit score when determining your rates is because it gives them a good idea of how trustworthy and reliable you will be when it comes to paying your bills on time, filing claims, etc. To be viewed in a more positive light by insurance companies, always keep your credit score high.

New Driver or Car Added

If you are part of a family and add your children or other family members to your policy, your premiums might increase. This is especially true if the new drivers added to your policy are deemed to be “high risk.” High-risk drivers are usually one or more of the following – young, inexperienced, elderly, and/or have a bad driving record.

The same is true if you happen to add a new car to your policy. Make sure the vehicle has a solid vehicle history report as well as a high safety rating. Luxury cars, sports cars, and cars expensive to repair will always cost more to insure and therefore will result in an increase in your insurance rates.

Change In Address

Rural areas tend to have lower insurance rates than urban areas. There are many reasons for this, but the most notable ones are – less congestion, cleaner roads, and less crime/vandalism. If you recently moved from Queens to Long Island, for example, expect your insurance to drop. If you moved from Rochester to Manhattan, on the other hand, expect an increase.

Remember, if your insurance company continues to raise your rates, you are always free to seek out a new provider. Once your policy expires, you are not contractually obligated to continue purchasing insurance from that same company.

Consider comparing rates from other auto insurance companies to make sure you are not paying more than you need to. To start your comparison, scroll up to the top of this page and enter your zip code. After filling out our brief two-page form, you will be given multiple quotes from the most trusted insurance companies.

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  1. Leslie schmidt says:

    A deer ran into my sons car in January causing $500,00 damage to his car.
    Yesterday he was involved in an accident. He believes it was not his fault and neither driver was issued a citation.
    Can his insurance company use the deer accident against him if they choose to raise his rates and is there a cap as to how much they can raise his rates?