Updated: February 10, 2026
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Factors within and outside a driver's control, including driving record, age and ZIP code, affect car insurance rates.
Insurance companies reassess your risk level during policy renewal, checking for changes in your driving behavior, credit score and other factors. This is when you'll often see rate changes.
You can save on car insurance by comparing multiple quotes, bundling policies, increasing your deductible and maintaining a good driving record.
Your car insurance went up because your insurer reassessed your risk at renewal and decided you now cost more to insure.
This usually happens after new information shows higher risk, such as a ticket, at-fault accident, insurance lapse or a drop in your credit-based insurance score. Rates can also increase even if nothing changed on your end, since insurers adjust pricing to account for higher repair costs, medical expenses or state-level insurance rules.
Car insurance costs keep rising in 2026 because of more frequent and severe accidents, higher repair costs and slim insurer profit margins. Inflation and risky driving behaviors also increase legal costs and premiums.
After a brief decline during the pandemic, both the number and severity of car accidents increased. Deadly collisions rose, forcing insurers to raise premiums to cover higher claim payouts.
Fixing vehicles costs more now. Auto parts are harder to source and labor costs have surged, especially for high-tech cars. Insurers raised rates to cover these higher repair bills.
Risky driving behaviors like speeding and impaired driving cause more accidents and lawsuits. Legal expenses from severe claims push insurance costs higher.
General inflation affects everything from vehicle prices to repair bills. When claim costs rise, insurance companies charge more to stay financially sound.
Even after major rate hikes in the past few years, many insurers still haven't seen strong profits. In 2026, rates keep rising, though more slowly, as insurers recover from years of high claim costs.
Natural disasters like hailstorms and floods, along with increasing vehicle thefts in some regions, are contributing to insurance losses and rate hikes.
If your car insurance rate increased, focus on factors insurers actually use to price risk. Not every adjustment lowers your premium, but the steps below target changes that directly affect underwriting decisions and have the biggest impact on what you pay.
Before making changes, find out why your rate went up. Call your insurer and ask whether the increase came from a driving violation, credit-based insurance score change, coverage adjustment or a companywide rate hike. This tells you whether fixing something will actually lower your premium or if shopping around makes more sense.
If you’re driving less due to remote work, retirement or lifestyle changes, you may be overinsured. Ask about lower mileage options, usage-based insurance programs or removing coverage that no longer fits how you use your car. These changes reduce risk in ways insurers recognize.
Increasing your deductible lowers your monthly premium immediately. This works best if you have enough savings to cover the higher out-of-pocket cost after an accident. It’s one of the fastest ways to offset a renewal increase without changing insurers.
Not all insurers respond to risk changes the same way. If your increase came from companywide pricing or rising claim costs, switching providers often saves more than tweaking coverage. Compare quotes before your renewal date to avoid paying higher rates longer than necessary.
Some increases won’t reverse right away. Clean driving records and stronger credit profiles take time, but they’re the most reliable ways to reduce premiums over multiple renewals. Avoid lapses in coverage and minor violations that can keep rates elevated for years.
Car insurance rates increase due to personal factors like accidents, driving violations and credit changes, plus external factors such as rising repair costs and area-wide claim frequency. The biggest rate increases come from violations: speeding tickets increase rates by 24.7%, accidents cause a 46.2% increase, and DUIs result in a 76.6% spike.
Fight rising rates by keeping your driving record clean and shopping around yearly. Bundle your policies or raise your deductibles to save money. When something good happens, like paying off a ticket or finishing a defensive driving course, call your insurer and ask for a lower rate.
Multiple factors affect car insurance rates. MoneyGeek answered frequently asked questions about insurance rate changes.
Car insurance rates don't go up for no reason. Insurance providers consider factors affecting insurance risk when calculating premiums. But sometimes insurance companies simply revise their rates.
Car insurance rates go up for many reasons. Factors you can control include driving behavior, where you live, credit score, marital status, vehicle and drivers on your policy. Factors you can't control include accidents, violations and claims in your area, your age, your gender and discount losses.
No. Different factors determine car insurance rates, and your premiums can drop. Adults pay lower rates than teenagers. Discounts also decrease insurance costs.
Yes, it's normal for car insurance rates to increase when insurance risk changes. More accidents and violations in an area cause rate increases.
Higher insurance rates at renewal may be due to multiple factors. It's often because of auto accidents and violations. But some reasons are out of the policyholder's control, like age. Ask your insurance provider about the reason for your rate change.
Our analysis covers 22,848 quotes from six providers across 100 ZIP codes, using data from state insurance departments and Quadrant Information Services. This captures national trends and regional differences that affect your costs.
Insurance companies adjust premiums based on risk patterns at specific ages. We used a consistent driver profile across all age groups to isolate the impact of age alone, without factors like vehicle type or driving record affecting results.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
