The short answer
Your price goes up for one of two reasons: something about you, your car or your policy changed, or your insurer’s costs went up and it raised rates for everyone. You can often fix the first kind. For the second, comparing quotes is usually the answer, because companies price the same driver differently.
Changes on your end
- An accident, ticket or claim. The NAIC calls claim frequency the single biggest influence on pricing, and says an increase is more likely when an accident was your fault. Even a second not-at-fault accident within a policy period can raise the price. See how much insurance goes up after an accident.
- A new driver on the policy. Adding a teen raises the price, and the Texas Department of Insurance notes that if a teen is a car’s main driver, the premium is based on that car. Our teen driver guide has ways to keep that down.
- You moved or changed cars. Where you keep the car, what kind of car it is and how you use it all affect the price.
- You’re driving more. Higher annual mileage means more exposure to risk.
- A discount ended. A new-customer, good-student or paperless discount can drop off at renewal. Compare this term’s declarations page with last term’s.
- Your credit changed, in states that allow credit-based insurance scores. California, Hawaii, Massachusetts and Michigan limit or ban their use for car insurance.
Changes that hit everyone
Insurers pay for repairs, medical bills and legal costs after accidents. When those costs rise, or when claims rise where you live, the NAIC says insurers pass the costs on as higher premiums. Cars with cameras and sensors cost more to repair, too. These increases can show up even if your record is spotless.
What to do before you pay
- Ask your insurer why. Request the specific reasons for the increase. Your agent or the company’s service line can tell you.
- Check your declarations page for mistakes. Make sure the drivers, cars, garaging address and mileage are right, and that a ticket or claim isn’t listed that shouldn’t be.
- Ask about discounts you may qualify for now. See our list of car insurance discounts.
- Revisit your coverage. A higher deductible lowers the premium, and on an older car, collision may no longer be worth it. Our coverage calculator checks that against your car’s value.
- Compare quotes for the same coverage. Renewal is the easiest time to switch, and there’s no penalty for shopping. Here’s how to compare quotes and how to switch without a gap in coverage.
For more ways to bring the price down, see how to lower your car insurance, and for how pricing works overall, what affects car insurance rates.
Frequently asked questions
Why did my car insurance go up when I didn’t have an accident?
Insurers also raise rates when their own costs rise, such as repairs, medical care and claims in your area. A lost discount, a new driver, a move or a mistake on your policy can also raise the price, so check your declarations page.
Can my insurer raise my rate at renewal?
Yes. Your price is set for the policy term, and a new price can apply when the policy renews. Ask your insurer for the reasons, and compare quotes before the renewal date.
Does shopping for a new quote raise my rate?
No. Where insurers check credit, they use a soft inquiry that doesn’t affect your credit score, and getting quotes doesn’t change your current policy.
Sources
This guide is general information, not insurance or legal advice. Coverage and requirements vary by insurer and state.
