Why Does My Car Insurance Keep Going Up?


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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.

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Key Takeaways

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Car insurance rates are influenced by various factors, both within and outside your control. These include your driving record, age and even your ZIP code.

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Insurance companies reassess your risk level during policy renewal, checking for any changes in your driving behavior, credit score, and other factors. This is when you'll often see a change in your rates.

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There are multiple strategies to save on car insurance, such as bundling insurance policies, increasing your deductible and maintaining a good driving record.

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Why Car Insurance Rates 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.

Why Car Insurance Rates Go Up

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Reasons you can control:
  • Your driving behavior
  • Where you live
  • Drivers on your policy
  • The vehicle you drive
  • You credit score
  • A change in marital status
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Reasons you cannot control:
  • Accidents and violations in your area
  • Claims in your area
  • Loss of discounts
  • Your age
  • Your gender

Your Driving Record

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).

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
coverage_user_friendly:
coverage_user_friendly:100/300/100 Full Cov. w/$1,000 Ded.
Clean$1,054$88
Speeding Ticket$1,314$110
Accident$1,541$128
DUI$1,862$155

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.

Data filtered by:Results filtered by:
State:
State:Alabama
Coverage:
Coverage:Full Coverage
At-Fault Accident$1,305$109
Clean$852$71
DUI$1,451$121
Ticket$1,074$89

Your Address

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age:
Age:40
Alabama$859$72
Alaska$892$74
Arizona$1,096$91
Arkansas$931$78
California$1,378$115
Colorado$998$83
Connecticut$1,345$112
Delaware$1,708$142
District of Columbia$1,208$101
Florida$1,627$136
Georgia$933$78
Hawaii$816$68
Idaho$661$55
Illinois$924$77
Indiana$733$61
Iowa$794$66
Kansas$1,048$87
Kentucky$1,009$84
Louisiana$1,477$123
Maine$723$60
Maryland$1,159$97
Massachusetts$1,049$87
Michigan$1,786$149
Minnesota$1,059$88
Mississippi$939$78
Missouri$1,334$111
Montana$961$80
Nebraska$980$82
Nevada$1,557$130
New Hampshire$942$79
New Jersey$1,491$124
New Mexico$974$81
New York$2,078$173
North Carolina$871$73
North Dakota$785$65
Ohio$737$61
Oklahoma$944$79
Oregon$1,121$93
Pennsylvania$1,023$85
Rhode Island$1,128$94
South Carolina$1,286$107
South Dakota$957$80
Tennessee$852$71
Texas$1,198$100
Utah$965$80
Vermont$677$56
Virginia$955$80
Washington$1,070$89
West Virginia$1,051$88
Wisconsin$906$75
Wyoming$876$73
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WHY YOUR INSURANCE WENT UP WHEN YOU MOVED

Insurance rates can differ significantly from one state to another, and much of this variation depends on the insurer. A provider offering the cheapest rates in one state could be the most expensive option in another. Each state also has its own set of insurance requirements. For instance, carrying car insurance isn't even a legal necessity in New Hampshire and Virginia, .

Adding a Driver to Your Policy

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
16$3,249$5,87045%
17$3,183$4,91735%
18$2,794$4,26034%
19$2,441$2,99518%
20$2,508$2,6937%
21$2,033$2,1716%
22$1,962$1,9952%
23$2,025$1,844-10%
24$1,913$1,743-10%
25$1,715$1,555-10%

Your Vehicle

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Subaru Outback$1,203Cheap to insure
Honda CR-V$1,249Cheap to insure
Honda Fit$1,251Cheap to insure
Honda Odyssey$1,252Cheap to insure
MINI Cooper$1,254Cheap to insure
Subaru Forester$1,261Cheap to insure
Jeep Wrangler$1,267Cheap to insure
Ford F-150$1,280Cheap to insure
Ford Escape$1,287Cheap to insure
Jeep Patriot$1,288Cheap to insure
Toyota Tacoma$1,293Cheap to insure
Dodge Grand Caravan$1,295Cheap to insure
Mazda CX-5$1,322Cheap to insure
VW Tiguan$1,323Cheap to insure
Toyota Highlander$1,324Cheap to insure
Toyota Sienna$1,326Cheap to insure
Chevy Equinox$1,334Cheap to insure
Toyota RAV4$1,334Cheap to insure
Kia Soul$1,338Cheap to insure
Chevy Silverado$1,340Cheap to insure
Honda Pilot$1,343Cheap to insure
Honda HR-V$1,354Cheap to insure
Ford Explorer$1,355Cheap to insure
Dodge Journey$1,358Cheap to insure
VW Beetle$1,376Cheap to insure
Nissan Rogue$1,380Cheap to insure
Ford Focus$1,384Cheap to insure
Nissan 350Z$1,386Cheap to insure
Subaru Legacy$1,387Cheap to insure
Subaru Impreza$1,388Cheap to insure
Ford Taurus$1,389Cheap to insure
Nissan Frontier$1,401Moderate
Toyota Prius$1,401Moderate
Honda Ridgeline$1,402Moderate
Chevy Tahoe$1,406Moderate
Acura MDX$1,408Moderate
Honda Accord$1,417Moderate
MINI Electric$1,417Moderate
Jeep Grand Cherokee$1,418Moderate
Nissan Juke$1,423Moderate
Nissan Versa$1,423Moderate
Mazda3$1,424Moderate
Honda Insight$1,431Moderate
VW Passat$1,431Moderate
Jeep Cherokee$1,433Moderate
Toyota Camry$1,434Moderate
Nissan Pathfinder$1,435Moderate
Toyota Tundra$1,438Moderate
Nissan LEAF$1,444Moderate
Honda Passport$1,452Moderate
Toyota Corolla$1,453Moderate
Chevrolet Cruze$1,455Moderate
VW Golf$1,455Moderate
Hyundai Elantra$1,457Moderate
Ford Expedition$1,464Moderate
Kia Soul EV$1,471Moderate
VW Jetta$1,481Moderate
Honda Civic$1,482Moderate
Chevy Malibu$1,490Moderate
Nissan Sentra$1,491Moderate
Hyundai Kona$1,492Moderate
Kia Niro$1,518Moderate
Ram 2500$1,524Moderate
BMW X3$1,535Moderate
Chevrolet Camaro$1,538Moderate
Audi A3$1,542Moderate
Jeep Gladiator$1,544Moderate
Subaru WRX$1,549Moderate
Nissan Altima$1,551Moderate
Audi Q5$1,566Moderate
Chevy Bolt$1,584Moderate
Mercedes GLA 250$1,586Moderate
Chevrolet Camaro SS$1,587Moderate
Ford Mustang$1,587Moderate
Nissan 370Z$1,597Moderate
Ford Mustang Mach E$1,603Moderate
Volvo XC40$1,627Moderate
Ram Rebel$1,636Moderate
Ford Mustang Ecoboost$1,669Moderate
Nissan Maxima$1,676Moderate
Dodge Charger$1,677Moderate
VW ID.4$1,682Moderate
Audi Q7$1,690Moderate
Subaru BRZ$1,701Moderate
Dodge Challenger R/T$1,707Moderate
BMW 3 Series$1,708Moderate
BMW 1 Series$1,725Moderate
BMW I3$1,729Moderate
Audi A4$1,729Moderate
Hyundai Ioniq$1,729Moderate
Mercedes C-Class$1,749Moderate
Mercedes CLA 250$1,782Moderate
Chevrolet Corvette$1,783Moderate
BMW X5$1,845Expensive to insure
Toyota 86$1,853Expensive to insure
BMW 5 Series$1,874Expensive to insure
Dodge Challenger$1,887Expensive to insure
Kia Stinger$1,937Expensive to insure
BMW 4 Series$1,970Expensive to insure
Audi E Tron$1,982Expensive to insure
Chevrolet Camaro ZL1$2,020Expensive to insure
Mercedes AMG C 63$2,104Expensive to insure
Tesla Model 3$2,117Expensive to insure
Tesla Model Y$2,207Expensive to insure
Dodge Challenger SRT Hellcat$2,270Expensive to insure
BMW X7$2,426Expensive to insure
BMW 7 Series$2,482Expensive to insure
Nissan GT-R$2,499Expensive to insure
Tesla Model S$2,919Expensive to insure
Tesla Model X$3,041Expensive to insure
Audi R8$3,112Expensive to insure
Porsche Taycan$3,200Expensive to insure
BMW i8$3,212Expensive to insure

Your Credit Score

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.

Data filtered by:Results filtered by:
Age:
Age:40
Good$1,163
Good$1,301
Poor$3,982
Poor$3,488

Your ZIP Code

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.

Your Eligibility for Discounts

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.

Your Age and Gender

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.

Data filtered by:Results filtered by:
Gender:
Gender:Male
16$5,733$478
17$4,811$401
18$4,144$345
19$2,891$241
20$2,591$216
21$2,035$170
22$1,867$156
23$1,719$143
24$1,616$135
25$1,443$120
26$1,379$115
27$1,355$113
28$1,334$111
29$1,314$110
30$1,260$105
35$1,228$102
40$1,207$101
45$1,193$99
50$1,160$97
55$1,128$94
60$1,124$94
65$1,182$98
70$1,266$106
75$1,413$118
80$1,582$132
85$1,702$142
90$1,790$149

Why Car Insurance Increased in 2024

Car insurance rates are on the rise due to various factors, including 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.

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    More accidents

    When COVID-19 hit, car insurance companies gave back $14 billion, thinking fewer accidents would occur. But as things opened up, not only did accidents happen more often, they also got worse. Even the number of deadly accidents increased. This has made insurance companies adjust their rates higher.

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    Parts and labor get pricier

    Fixing a car is more expensive now because the parts and the labor to install them cost more. Insurance companies must raise their rates when these costs rise to keep offering the same coverage.

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    Slim profits for insurers

    The car insurance business isn't making huge profits. They measure their success with a "combined ratio," which needs to be under 100% for them to make money. With the current trends in accidents and costs, rates will likely keep increasing.

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    Inflation hits insurance too

    The rising cost of living affects everything, including insurance. If insurance rates don't go up to match these rising costs, companies could run out of the money they need to pay out claims.

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    Risky driving and legal costs

    Bad driving habits like speeding or driving under the influence are on the rise. When accidents happen because of this, legal costs can increase, especially in severe cases. This also pushes insurance rates higher.

What to Do When Car Insurance Rates Go Up

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

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    Review your policy

    The first step is to understand why your rates have gone up. Check your policy details and consult your insurer for clarification.

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    Contact your insurer

    Sometimes, a simple phone call can explain why your rates increased. You can also inquire about any new discounts you may now qualify for.

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    Re-evaluate your coverage

    If your lifestyle has changed — maybe you're working from home now and driving less — you might not need as much coverage as you did before. It’s also a good time to consider usage-based insurance programs.

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    Increase your deductible

    You can often lower your premium by agreeing to pay a higher deductible in the event of a claim.

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    Bundle your insurance

    If you have multiple types of insurance policies, bundling them with a single insurer can often result in a discount.

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    Check for discounts

    You might be eligible for new discounts, like a good driver discount if you've been accident-free for a certain period or discounts related to a new job or retirement.

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    Adjust payment plan

    Some insurers offer a discount for paying your premium lump sum rather than monthly installments.

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    Remove unnecessary add-ons

    Features like rental car coverage or roadside assistance are often optional. Removing them can lower your premium.

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    Consult an insurance broker

    If you're having trouble finding a better rate on your own, a broker can help you navigate the market.

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    File a complaint

    If you believe the rate increase is unjustified and discussions with your insurer have not resolved the issue, you can file a complaint with your state's insurance department.

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    Switch providers

    You can always switch to a different insurer offering better rates. Just make sure to understand any fees associated with canceling your current policy.

How to Save on Car Insurance

To save on car insurance, consider shopping around for quotes, bundling insurance policies, and asking for discounts you may qualify for. Other strategies include increasing your deductible, maintaining a good driving record and opting for annual payments.

1
Shop around

Compare quotes from different providers to find the best deal. Make it a habit to review your policy and shop for new quotes at least once a year.

2
Bundle insurance

Combine auto with home or renters insurance for a discount.

3
Ask for discounts

Inquire about discounts you may qualify for, such as good driver, multi-car, or student discounts.

4
Increase your deductible

A higher deductible usually means a lower premium.

5
Maintain a good driving record

Safe driving can qualify you for discounts and lower rates.

6
Pay annually

Some insurers offer discounts for paying your premium in one lump sum.

7
Use telematics

Some insurers offer discounts for using an app or device that tracks your driving habits.

8
Take a defensive driving course

Completing a course can often result in a discount.

9
Maintain good credit

A higher credit score can lead to lower premiums in many states.

10
Choose your car wisely

The make and model of your car can affect your insurance rates.

Frequently Asked Questions

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.

Why did my car insurance rates go up for no reason?
What are the reasons car insurance rates go up?
Does car insurance always increase?
Is it normal for car insurance to increase?
Why is my car renewal so expensive?

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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