Why Does My Car Insurance Keep Going Up?

Many factors influence car insurance rates, some of which you can control, like your driving record and credit score, and others you can't, such as state laws and your ZIP code. These rates are often reviewed when it's time to renew your policy.

If you notice an increase, you can talk to your insurer or even switch companies. You can also save by bundling policies, requesting discounts, or choosing a higher deductible.

• Why Car Insurance Rates Go Up
• Why Car Insurance Increased in 2023
• What to Do When Car Insurance Rates Go Up
• How to Save on Car Insurance
• Frequently Asked Questions

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 record is like a report card of your behavior on the road. It keeps track of any tickets you've received, accidents you've been involved in, and other traffic violations. The more points you accumulate on this record, the higher your insurance rates will likely be.

The average cost of car insurance spikes depending on the severity of your violation:

• With a speeding ticket: Your annual rates increase by 24.7% or $260 on average.
• After an accident: Your annual rates go up by 46.2% or $487 on average.
• With a DUI: Your annual rates soar by 76.6% or $808 on average.

For instance, in the table below, a person aged 30 to 59 with a clean driving record would have an annual premium of $1,054, while a person with a speeding ticket would have a premium of $1,314 ($260 higher).

Browse the table below to find out how a violation affects rates in your state.

Please note that the data below is based on a 40-year-old male driver.

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.