Many people noticed an increase in their car insurance premiums when they opened their renewal letters. Knowing the reasons your auto insurance rate changes can help you prepare.
Why Did My Rate Go Up?
Some of the life changes that can affect your car insurance rate include:
You move to a new location.
Your rate can change if you move to a new location. Insurance companies consider your location when charging you. Your rates will likely increase if you move to an area that has a higher risk of theft or densely populated.
Claims in your state increased.
A significant event in your area, such as a hailstorm, tornado, or even civil unrest, can lead to an increase in insurance claims. Even if you don’t make an auto insurance claim, an increased number of claims from other people in your area can increase all insurance rates.
You were in an accident.
Getting in an auto accident comes with high costs, whether it was your fault or not. At-fault accidents will increase your rates because you’re considered a higher risk. Also, your insurance rates may increase even if the car accident wasn’t your fault.
Change in driving record.
Insurers use driving records to determine your rate. Poor driving records could impact your premium because people with bad driving records are more likely to have a claim. If your driving record takes a hit, it can drive up your auto insurance rate.