Why did my car insurance rate go up?
Car accidents and traffic violations are common reasons for a rate increase, but your rate could also go up after changing your address, adding a new vehicle or driver, recent increases in claims in your area, and rising repair costs and vehicle values. Know that insurance premiums aren't raised on a whim, and the reason for a car insurance rate increase is almost always tied to risk.
Explore Progressive Answers' auto editorial guidelines to find out why you can trust the car insurance information you find here.
Reasons car insurance rates increase
Here are some of the most common reasons for your car insurance rate to go up:
Speeding tickets and moving violations
Speeding tickets, DUIs, and other moving violations can increase your car insurance rate because they indicate a higher risk of future accidents. Multiple violations typically carry a greater impact than a single ticket, and even a minor moving violation could increase your rate. Non-moving violations, such as parking tickets, usually don't affect your insurance rate.
Accidents on your driving record
At-fault accidents often lead to higher insurance rates because they suggest increased risk. In states that allow it, not-at-fault accidents may also impact your rate, as insurers factor in a driver's overall accident history.
Comprehensive claims
Depending on your insurer and state, filing a comprehensive claim may affect your rate, even for damage outside of your control. Comprehensive claims can include 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 or drivers to your policy
Adding a more expensive vehicle can increase your rate because it may cost more to repair or replace or may be more likely to be stolen. Adding a new driver may also raise your premium, especially if the driver is a teenager or has a history of violations.
Claims trends in your area
Car insurance rates can increase based on claims trends in your ZIP code. Areas with higher rates of theft, accidents, or weather-related claims are riskier to insure, which can lead to higher premiums, even for drivers with clean records.
Moving to a new location
Changing where your car is kept overnight can affect your insurance rate. If you move within the same state, your rate may change based on claim trends in your new ZIP code. If you move to a different state, you'll need a new auto insurance policy.
Age and driving risk
Car insurance rates can increase as drivers reach their mid-70s and beyond. Insurers may view older drivers as higher risk due to changes in reaction time, vision, or overall health. However, rates for seniors are still often lower than teen drivers unless other risk factors are present. Seniors may be eligible for car insurance discounts depending on the insurer and state.
Learn more about how your age can impact your insurance rate.
Lapse in car insurance coverage
A lapse in car insurance coverage can lead to higher insurance rates when you start a new policy or reinstate an old one, as insurers may view gaps in coverage as an increased risk.
Loss of insurance discounts
Your car insurance rate can increase if you no longer qualify for certain discounts. This can happen after an accident or violation, or when life changes affect eligibility for discounts such as safe driving, paperless billing, home ownership, or bundling multiple policies. If you lose one discount, you may still qualify for others that can help lower your rate.
Why does my car insurance rate 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 cost to repair and replace vehicles or increases in claims and claim costs in your area.
Pro tip:
Keep in mind that car insurance may not increase at the time 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.
Are there ways to get cheaper car insurance?
Yes, there are many ways you can lower your auto insurance rate. One of the easiest ways is to look at your policy and identify coverages you may no longer want or need. You could also consider raising your deductibles, which would lower your premiums too.
Progressive also has a variety of tools that can help you find an affordable policy, including:
- AutoQuote Explorer®: Easily compare our rate against other insurance companies.
- Name Your Price tool: Let us know your budget and we'll suggest coverages that fit it.
- Snapshot: Earn a personalized rate that reflects your safe driving habits.
These are just a few ideas to get you rolling toward more savings. There are many other ways to get cheaper car insurance.
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