Can my car insurance go up for no reason?
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UPDATED: Oct 14, 2021
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- Car insurance companies can increase your rates for any reason or no reason at all
- When it comes to your car insurance rates, there are some factors that you can control in order to keep your insurance affordable
- If the rates on your current policy are too high, you can use a comparison tool to find a less expensive policy
Car insurance can increase for any reason. It can even be increased for seemingly no reason. However, there are steps you can take to keep your auto insurance premiums affordable.
One of the ways is to frequently shop car insurance via a comparison tool.
This will tell you if another insurance carrier is offering your policy at a lower rate. Use our free comparison tool today to get started.
Reasons Car Insurance Companies Randomly Increase Premiums
Some car insurance premium increases can seem random, but your insurance company usually has a reason, even if you do not know it.
- Overall Risk – Your car insurance company periodically assesses their overall risk. This involves a study of their past claims, the frequency and the amount paid. If your car insurance company’s risk increases, so will your premiums, even though you may be a safe, accident-free driver.
- Credit Score – Some car insurance companies check credit scores before they issue new policies. If your credit score has fallen, your rate increase may be due to your lower score.
- High-Risk Age – While getting older can result in lower premiums, like when you turn 25 and 65, some ages are at an increased risk for accidents. If you’ve just had a birthday and your next insurance policy notice lists higher rates, it may simply be because you’ve entered a higher-risk age bracket.
- You Changed Jobs or Were Transferred – While changing jobs doesn’t necessarily equate to rising car insurance premiums, driving further increases your risk of getting into a car accident, and those increased risks will translate into higher monthly premiums.
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Reasons for Car Insurance Premium Increases that You Can Directly Control
You can directly control some of the costs associated with your car insurance policy.
One of those ways is by making sure you are getting all of the discounts that are available to you. These include safe driver discounts, multi-line and multi-car discounts and low-mileage discounts.
- Purchasing a New Car – Before you purchase a new car, test car insurance rates by inputting the information about the car and your personal information into a comparison tool. Different makes, models and years of cars are priced differently when it comes to insurance.
- Monitoring Your Credit Report – Instead of being surprised by a sudden increase in your car insurance premiums, monitor your credit report. Make sure you pay all your bills on-time and have erroneous accounts removed from your report.
- Getting Numerous Speeding Tickets or Driving Infractions – Obey all the traffic laws and don’t drink and drive or drive under the influence. Getting numerous speeding tickets and driving infractions within a relatively short period of time can increase your rates.
- Not Paying Your Car Insurance – The number one reason drivers lose their insurance coverage is through non-payment. Not paying your car insurance premiums on time can result in a lapse in your insurance coverage. This often results in being declared a high-risk driver, and your rates will increase.
Taking Control of Your Car Insurance Rates
If you’ve been with your car insurance company for years, they may feel confident in randomly increasing your rates. This is because drivers who have long relationships with their car insurance companies are least likely to switch.
Instead of letting your car insurance carrier dictate your rates, take control by shopping around for a new car insurance policy.
You can locate a new car insurance policy by utilizing a fast, free online comparison tool. These programs take your personal information, driving information and vehicle information and return all of the available policies in your area.
This allows you to quickly view the rates and insurance policies of multiple car insurance carriers.
If you decide to switch to a different insurance carrier, you can accomplish the task by purchasing your new policy, making sure it’s active and canceling your old policy. This allows you to have a car insurance policy that you can afford and that matches your driving habits.
Start shopping today to see how much you could save on car insurance. It’s a simple as entering your zip code in our free tool below.