Why Did My Car Insurance Go Up?

It's common to see a change in your car insurance rates when it's time for policy renewal.

Your insurer takes this opportunity to reassess your risk level by checking various records. They consult with the Department of Motor Vehicles (DMV) to see if you've had any lapses in insurance, received any tickets, or committed any moving violations. Additionally, your insurer will check your credit score; a decline since your last assessment could result in higher premiums.

While some factors are out of your control, like state laws, you can still work on maintaining a good driving record or improving your credit score to lower your future premiums.

Your driving history has a major impact on your insurance rates. The more serious the violation, the more you’ll pay.

• Speeding (11–15 MPH over): $1,880/year — $374 more than a clean record
• At-fault accident: $2,180/year — $674 increase
• DUI (BAC ≥ .08): $2,665/year — $1,159 more

With a clean record, you’ll pay about $1,506 a year for full coverage with a $1,000 deductible.

The cost of car insurance can differ significantly from state to state due to factors like population density, minimum insurance requirements, and the typical cost of car repairs, as well as weather-related risks such as hurricanes or hail.

The average cost of car insurance in New York can vary by borough, depending on where you park your car overnight.

View the table below to see the annual and monthly premiums for each state.

Insurance companies evaluate the risk of covering you and anyone else you add to your policy. This generally includes all household members who could potentially drive your car.

If your household includes a teen driver or someone considered high-risk, adding them to your policy will likely cause your rates to increase. However, if there's someone you don't want driving your car, you can talk to your insurance company about listing them as an "excluded driver." This means your policy won't cover them, and it won't affect your rates.

Despite the initial sticker shock of adding a teen driver to your family policy, it's usually the cheapest way to get them insured, as indicated in the table below. As your teen gains more experience and maintains a clean driving record, you can generally expect their insurance rates to decrease over time.

To ensure you're getting the best deal, shopping around for insurance every year is a good idea. Look for companies that offer the cheapest car insurance for teen drivers; doing so can result in significant savings.

Auto insurance companies also consider the type of vehicle you drive. The make and build of your car can change your premiums. Adding or switching to a new car can also increase your insurance rate because certain models, such as those with rare parts, are more expensive to insure.

A change in your credit score can mean a difference in car insurance rates. If your credit score drops, your insurer may drive up the cost of your policy. That said, there are states — such as California, Hawaii and Massachusetts — where credit score does not matter.

Location plays a crucial role in determining your car insurance premiums.

Even within the same state, rates can vary by ZIP code. Insurance companies consider collective risk, meaning if your area has high rates of accidents and violations or if more people in your ZIP code have filed claims, you're more likely to face higher insurance costs. Changes to accident and violation rates in your area can also lead to adjustments in your premiums.

Qualifying for car insurance discounts can help you save significantly. However, it is possible to no longer be eligible for the discount at the time of your policy renewal.

For example, a college student who has graduated and returned home may no longer be eligible for a distant student discount. A driver recently been in an accident may also lose their safe driver discount.

Always check with your insurer to see if you still qualify for these discounts and inquire about other car insurance discounts that may be available to you.

Regarding car insurance, average rates by age and gender can tell you a lot about how much you're likely to pay.

Young drivers, particularly males under 25, usually pay more due to a higher perceived risk of accidents. However, after 25, gender has less influence on your rates. There is no specific age when car insurance starts to go down. Instead, as you grow older, your rates are more affected by your driving history and experience.

Rates generally decrease with age, reaching their lowest around 50. However, both teenagers and seniors often face higher rates because they're considered riskier drivers.

Car insurance costs continue to rise in 2025, driven by several ongoing challenges affecting the industry. These factors include an increase in accidents and their severity, higher costs for parts and labor and slim profit margins for insurers. Additionally, inflation and risky driving behaviors are contributing to higher legal costs, all of which are putting upward pressure on insurance premiums.

If your car insurance rates increase, you can talk to your insurer, adjust your coverage, or even switch providers to lower your costs.

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.

To combat rising rates, maintain a clean driving record, shop around annually and take advantage of discounts like bundling policies or increasing deductibles. Contact your insurer about rate reductions when positive changes occur.

Knowing the different factors affecting car insurance rates can help you understand why your car insurance rates are so expensive. MoneyGeek answered some frequently asked questions about insurance rate revisions to help you understand auto insurance rates.

Our Research Approach

Our analysis covers 22,848 quotes from six providers across 100 ZIP codes, using data from state insurance departments and Quadrant Information Services. This scope captures both national trends and regional differences that affect your actual costs.

Why our methodology matters for age-based rates: Insurance companies adjust premiums based on risk patterns that emerge at specific ages. By using a consistent driver profile across all age groups, we isolated the impact of age alone — without factors like vehicle type or driving record affecting the results.

Sample Driver Profile

We used this standard profile to calculate average annual costs:

• 16-25 year old drivers (our primary focus group)
• 30 and 40 year old drivers (both male and female for comparison)
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

We modified this profile by location, coverage type and limits to show average costs for different driver situations across the United States.

Coverage Levels We Analyzed

Your deductible is the amount you pay before insurance covers the rest of a claim. Full coverage combines liability insurance with comprehensive and collision coverage to protect both you and your vehicle.

For national averages, we used 100/300/100 full coverage:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability per accident
• Comprehensive and collision coverage with $1,000 deductible

For state-specific data, we used 50/100/50 full coverage:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• Comprehensive and collision coverage with $1,000 deductible

Important: Liability coverage doesn't include deductibles. The $1,000 deductible applies only to comprehensive and collision coverage.

Why these coverage levels: The 100/300/100 reflects what most financial experts recommend for adequate financial protection, while 50/100/50 shows costs closer to what many states require. This dual approach shows you both budget-conscious and comprehensive coverage scenarios.

Rates vary by location, driving record and other factors.