Why Did My Auto Insurance Increase Even Without an Accident?
Your car insurance could go up without an accident for various reasons. While the insurance company’s reason for increasing your insurance may be justified, we’ve seen and handled cases where these companies think they’re above the law. If that’s what you’re dealing with, contact us today for a free, no-obligation case evaluation. We might be able to hold these companies accountable.
That said, here are some common reasons car insurance might increase even without an accident.
The insurance company may decide to increase your premiums if there are major changes in the risk factors associated with your area. Take, for example, a situation where there has been a surge in:
In that case, the insurance provider might see it as a riskier area to insure. To avoid making losses while paying out claims, the company might decide to increase your premiums even if you have a clean driving record.
The cost of vehicle repairs and medical care is continually rising throughout the United States. As these costs go up, insurance companies may also adjust their rates to ensure they can cover the expenses of future claims.
Your credit score could determine how much you should pay for car insurance. These companies use credit scores to help determine risk and set insurance rates. For this reason, the company could interpret a decrease in your credit score as an indicator of potential financial instability. Given that financial instability tends to correlate with higher claims rates, the insurance provider might decide to increase your rates to prepare for potential claims you might file in the future.
Insurance rates can also be affected by changes in state regulations or the introduction of new laws related to car insurance. If new regulations require higher levels of coverage or if insurers are mandated to offer certain types of benefits that they previously did not, your premiums might increase to cover these new legal requirements.
Yes, you may be able to file a lawsuit against your insurance provider, especially if they act out of bad faith. What this means is that the insurance company has evaded its responsibility to its clients through any of the following:
If you believe that your insurance provider is acting out of bad faith, you may have a case against them. At Morgan and Morgan, we have more than 35 years of experience dealing with insurance companies all over America, big and small. Contact us today to have your case reviewed by a bad faith insurance expert from our team. We might be able to fight for you.