Why Did My Car Insurance Go Up Without an Accident

Car insurance rates can increase simply because of trends. If one insurer decides to raise its rates across the board, other companies typically follow along. Other factors that can affect insurance rates include rising costs to repair and replace vehicles or increases in claims and claim severity in your area. Changes in your life, like your location, age, claims history, and driving record, along with your vehicle’s make and model, also affect your insurance rates.

Your rate increase typically isn’t going to happen in mid-policy, but don’t be surprised if rates increase when you renew. Basically, if the cost of living increases, so will your car insurance rates.

You don’t need to be in a vehicle accident to see your car insurance rates periodically increase. Some other factors affecting insurance premiums include,

Speeding Tickets and Moving Violations

Violations on your motor vehicle report, especially a DUI or multiple speeding tickets, are an indication to your insurance company that you're more likely to have an accident than a driver with no violations. The more violations you have, the higher your risk of filing a claim. Even a minor moving violation ticket could increase your car insurance rate. The good news is that insurance companies often don't increase your rate due to a non-moving violation like a parking ticket.

Adding Vehicles and Drivers

If you purchase a more expensive car, your rate is likely to go up, as your new ride may be more likely to be stolen. Repair or replacement costs are also higher than your previous vehicle. Adding a new driver to your existing policy could also drive up your price, especially adding teen drivers or someone with a poor driving record.

Loss of discounts

If you no longer qualify for discounts, your auto rate will likely increase. For example, if you had a discount for not being involved in an accident for the past three years, you'll no longer qualify for that discount after getting in an accident. Other common discounts you could lose if your situation changes include ones for being a homeowner, going paperless, and bundling home and auto policies.

If you’re involved in a vehicle accident, your insurance rates will probably go up. While a personal injury attorney can’t help with this, they can ensure you receive fair compensation for your auto accident. Contact Morgan & Morgan for a free, no-obligation case evaluation.