Compare Rates and Save on Auto Insurance

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Insurance companies calculate premiums based on insurance risk. That means insurance rates do not increase suddenly without reason. A policy price increase can be due to factors you can or cannot control.

For instance, you may have committed a traffic violation, or maybe you were involved in an auto accident. Changes in your profile, such as your place of residence or age, can also affect your auto insurance cost.

To help you understand why your car insurance is so expensive, MoneyGeek breaks down some common factors that lead to insurance rate revisions.

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Key Takeaways

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While car insurance providers can increase rates at renewal, it is not without reason.

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Factors affecting car insurance rate increases can include things you can control like driving behavior, credit score and place of residence.

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Other reasons why car insurance goes up may be out of your control, like your age, loss of discounts and the number of claims in the area.

Why Did Your Car Insurance Rates Go Up at Renewal?

Finding out that you have to pay higher insurance premiums at renewal can be frustrating. It may help to understand that insurance rates increase for a reason.

There are two types of reasons why car insurance goes up.

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

Any change to your situation may have an impact on your auto insurance rates.

Factors You Can Control

Being a safe driver and maintaining a clean driving record can help you keep your auto insurance rates low. However, it’s important to understand premiums can increase even if you have no claims. Knowing what factors affect your insurance rates can help determine what caused an insurance rate revision.

Driving Behavior

Driving behavior greatly affects your insurance rates. For instance, drivers with tickets, accidents or a DUI on their driving records tend to have higher car insurance rates than drivers with clean records.

Car Insurance Premiums With Tickets and Accidents
Payment Cycle
Rate After Ticket
Rate After An Accident
Rate After DUI

Monthly

$153

$186

$240

6 Months

$918

$1,119

$1,440

Annual

$1,836

$2,237

$2,879

Where You Live

Car insurance rates are affected by your residence location. Some states and ZIP codes have more expensive auto insurance policies than others. That means a change in your place of residence can cause a rate revision on your car insurance even if you move to a different city in the same state.

Car Insurance Premiums Based on Where You Live
State
Average Annual Insurance Cost

AK

$984

AL

$1,221

AR

$1,189

AZ

$1,284

CA

$1,429

CO

$1,450

CT

$1,442

DC

$1,202

DE

$1,483

FL

$2,208

GA

$1,638

HI

$1,066

IA

$778

ID

$745

IL

$1,134

IN

$725

KS

$931

KY

$1,405

LA

$3,041

MA

$1,112

MD

$2,127

ME

$607

MI

$4,333

MN

$1,199

MO

$1,305

MS

$1,112

MT

$1,216

NC

$841

ND

$743

NE

$923

NH

$778

NJ

$1,674

NM

$1,133

NV

$1,900

NY

$3,433

OH

$803

OK

$1,299

OR

$1,181

PA

$1,818

RI

$1,822

SC

$1,139

SD

$817

TN

$1,018

TX

$1,316

UT

$1,154

VA

$790

VT

$812

WA

$1,264

WI

$933

WV

$1,016

WY

$851

Drivers on Your Policy

Adding a driver to your auto insurance policy can either increase or decrease your annual premiums. For example, having a teenager on your policy can increase your insurance premiums. That is because insurance providers consider teens to be riskier drivers due to inexperience behind the wheel.

Use MoneyGeek’s auto insurance calculator to estimate your car insurance costs if you add another person to your policy.

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Vehicle You Drive

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

Car Insurance Based on the Car You Drive
Car Model
Average Annual Premium

Jeep Patriot

$1,085

Honda CR-V

$1,099

Subaru Outback

$1,121

Audi R8

$2,770

BMW i8

$2,810

Tesla Model Y

$2,878

Credit Score

A change in your credit score can mean a change 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.

Car Insurance Based on Your Credit Score
State
Excellent
Fair
Poor

AK

$860

$1,108

$1,412

AL

$973

$1,464

$2,138

AR

$958

$1,488

$2,144

AZ

$988

$1,545

$2,495

CO

$1,211

$1,781

$2,515

CT

$1,221

$1,782

$2,511

DC

$1,011

$1,428

$2,107

DE

$1,269

$1,989

$2,959

FL

$1,644

$2,648

$4,194

GA

$1,464

$2,090

$2,955

IA

$620

$885

$1,237

ID

$608

$886

$1,245

IL

$985

$1,430

$2,077

IN

$576

$856

$1,220

KS

$725

$1,085

$1,602

KY

$1,187

$1,862

$3,023

LA

$2,689

$4,417

$6,874

MD

$1,868

$2,893

$3,826

ME

$511

$712

$1,046

MI

$3,361

$5,920

$12,574

MN

$1,143

$1,674

$2,778

MO

$936

$1,493

$2,270

MS

$906

$1,310

$1,867

MT

$941

$1,399

$2,070

NC

$721

$875

$1,024

ND

$604

$923

$1,360

NE

$661

$1,002

$1,442

NH

$641

$904

$1,274

NJ

$1,312

$2,151

$3,413

NM

$1,019

$1,438

$2,115

NV

$1,669

$2,394

$3,430

NY

$3,927

$6,307

$10,640

OH

$595

$873

$1,283

OK

$1,064

$1,515

$2,146

OR

$853

$1,217

$1,699

PA

$1,250

$1,912

$2,871

RI

$1,568

$2,386

$3,244

SC

$898

$1,342

$1,858

SD

$655

$912

$1,243

TN

$826

$1,241

$1,897

TX

$1,023

$1,596

$2,344

UT

$906

$1,479

$2,209

VA

$633

$905

$1,263

VT

$633

$975

$1,443

WA

$1,057

$1,495

$2,073

WI

$705

$1,042

$1,625

WV

$817

$1,201

$1,753

WY

$713

$980

$1,368

Factors You Can’t Control

There are instances when the reason why car insurance goes up is out of your hands. An increase is not always because of something you did or did not do. While beyond your control, certain factors may also lead to an insurance rate increase.

Accidents and Violations in Your ZIP Code

Location is significant when determining insurance premiums. Changes to accident and violation rates in your area can affect your rates. That is because insurance considers collective risk. Living in an area with high rates of accidents and violations can increase your chances of being in an accident and lead to more expensive auto insurance rates.

Claims in Your ZIP Code

Car insurance costs may also vary depending on your ZIP code. Even within the same state, auto insurance rates may be more expensive in some areas than in others. For instance, if more people filed claims in your ZIP code, insurers may consider it riskier.

Loss of Discounts

Qualifying for 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. Check with your insurer if you are still qualified. There may also be other discounts available to you.

Age

Age plays a huge role in car insurance. Based on average rates by age, teenagers and seniors tend to pay more for vehicle insurance than adults in other age groups. This is because of the increased likelihood of getting into an accident at certain ages. Insurance providers consider teens and seniors to be riskier drivers.

Frequently Asked Questions About Why Car Insurance Rates Increase

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.

About Mark Fitzpatrick


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Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark 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 economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.