Insurance Advisor at Oliver L.E. Soden Agency, Inc

Why Does My Car Insurance Keep Rising?

Nothing is more frustrating than increasing car insurance rates when you haven’t made any claims. Rising insurance premiums are a common complaint among good drivers, so you are certainly not alone. In fact, the consumer price index (CPI) for auto insurance has gone up 21.5% since 2012.


While it might seem like your insurance carrier is charging you more just for the heck of it, this isn't true. There are rules against that. What’s really going on is that insurance companies need to sustain healthy profits, and they’re finding it hard to do so without adjusting customer rates.


Consider that car accidents have been increasing in frequency since 2011, with fatal accidents costing the insurance company $6 billion. Unfortunately, consumers pay for this in one way or another. Fortunately, you don’t have to sit back and take every price hike that comes your way. Some things are in your control.


Common Reasons Why Your Insurance Rates are Rising

Here are a few factors that can cause your car insurance renewal to increase.

  • Claims history and driving record

  • History of driving violations or convictions

  • Change of address (your new area may be more expensive)

  • New drivers added to your policy

  • Cancellation of your home policy (you might lose a discount)

  • Taking off a vehicle (lose a discount)

  • Change of employment (lose a discount)

  • Medical conditions that increase your risk for accidents


Has Everything Stayed the Same? Other Issues That May Affect Your Rates.


If you haven’t had any of the above changes, talk with your insurance carrier about what parts of your insurance went up and why. The three parts to inquire about are liability, collision and comprehensive.


  • Liability. Insurance companies pay out liability claims each year, which affect your rates. If there was a steady increase in payouts, rate adjustments may be made.


  • Collision. Insurance companies keep an eye on traffic patterns, weather patterns and other congested areas that can increase the risk for accidents. Rates may be adjusted in response to this.


  • Comprehensive. Increases in theft rates for your specific vehicle or other vehicles that the company insures can affect your rates. Old and new cars both count. To gain insight into this, ask your agent if your group rate has changed since last year.


Always Talk to Your Insurance Agent


You shouldn’t have to stress each month about paying your automobile insurance, so we recommend talking to your insurance provider if your rates continually increase. During your conversation, make sure that you are getting all applicable discounts, including those that come with automated security functions. Also make sure that you are not being penalized for claims or driving records that are no longer applicable, and that your coverage meets your current needs.


Need a quote? Hal Soden is happy to look over the details and provide you with competitive rates. Call us today!