Car insurance rates can increase for various reasons. Increases can be influenced directly by factors such as your driving record, while others are out of your control. So, if you’re wondering, “Why did my car insurance go up?” you’ve come to the right place. Keep reading to learn more about what causes car insurance to go up and how to better manage your car insurance premium.
Common Reasons Why Car Insurance Premiums Increase
Accidents and Claims
When accidents happen—whether you’re at fault or not— it can increase your premium. The more accidents you have, the more you are perceived as high-risk and, therefore, the higher the premium.
Insurance companies look into a driver’s record to see how high the risk is based on your accident records. When you have more accidents, the insurer will need to cover a larger amount to cover the damages.
Traffic Violations
Similar to accidents, an increase in traffic violations can lead to a higher impact on your premium. If a driver violates the law often, this indicates the chances of accidents and the risk of claims are also high.
Take a DUI, for example. Having a record of driving under the influence, strongly indicates that you’re an irresponsible driver and, therefore, insuring you is a higher risk. Other violations, such as speeding tickets or reckless driving habits, could also impact your rates. So, to maintain a lower premium, ensure you have a clean track record and apply good driving habits.
Changes in Personal Information
Changes in your personal information, such as a change of address, could affect your premium rates. As strange as it sounds, location does jeopardize your coverage.
For one, new auto insurance coverage will apply if you move to a new state, as different states have different insurance rates.
Adding a new driver to your coverage is another factor that can increase your auto insurance. Besides the obvious reason for having an extra driver to cover, a new driver’s background will also be considered. For example, as we mentioned earlier, a bad track record will increase the price, and so will teen drivers or seniors, as they are considered high-risk drivers.
Rising Repair Costs and Medical Expenses
So, you have a perfect driving record but still see a hike in your premium. If you’re asking, “Why did my car insurance go up?” this could be caused by things that aren’t your fault, such as rising repair costs and medical expenses. In this case, there’s little room to move. Insurance companies increase rates to cover the higher expenses due to the rising costs.
State Regulations and Industry-Wide Adjustments
The government often introduces new regulations to address risks that can appear on the market and affect consumers. When this happens, there can be an industry-wide adjustment, thus, causing your premium to go up. This is why it’s crucial to stay updated on regulatory changes.
At Diemert Insurance, our team is always on top of these updates, and our clients don’t need to worry about missing these changes. We ensure you’re up-to-date with the latest changes to provide you with the best coverage at competitive rates!
How to Manage Your Car Insurance Premiums
1. Shop Around and Compare Rates
One useful way to minimize paying too much on your insurance is to take some time to do research. Shop around different insurance companies and compare their rates. Now that you know the reasons why your car insurance might go up, find a better deal from the beginning!
You’ll want to have plenty of options before deciding. Diemert Insurance works with 34+ companies, so we can help you find the best rates!
2. Consider Bundling Insurance Policies
People often miss this, but many insurance companies offer discounts when bundling policies. For example, when you bundle policies, such as auto insurance and homeownership coverage, you get more comprehensive coverage and better rates!
3. Increase Your Deductible
A deductible is the amount you pay before your insurance coverage starts. A higher deductible means you’ll have a lower premium. For example, if you have a deductible of $1500 and you receive a bill of $3000. You pay $1500, and the insurance covers the rest.
Determining the right deductible is a strategy on its own, and the right amount can be an effective solution. Let Diemert help you decide if raising your deductible makes sense based on your risk tolerance and financial situation.
Diemert Insurance Can Help You Manage Rising Car Insurance Costs
Managing rising insurance costs can be tricky. While you can maintain a good driving record, some things, such as regulatory changes or finding the best insurer, require time and diligence.
This is where Diemert Insurance can help. We provide a variety of solutions to all your insurance concerns. We work with multiple providers, giving you a lot of options to choose from. We offer customized insurance solutions tailored based on your unique needs and preferences, and we assist in reviewing policies, ensuring you continue to get the best coverage at the best price! Our personal approach will make your insurance dealings and experience a breeze!
Final Thoughts: Why Did My Car Insurance Go Up?
While It’s normal for insurance rates to go up, there are things you can do to prevent paying too much on your insurance. Diemert Insurance is your go-to insurance partner. Contact us today, and we’ll help you get the best insurance deals based on your situation!
