Why Did My State Farm Car Insurance Rate Go Up?

Between inflation, accident rates, and the cost of auto parts on the rise—here’s everything you need to know about your State Farm rates going up.
Written by Jaya Anandjit
Reviewed by Bellina Gaskey
General inflation, rising numbers of accident claims, and increasing prices of auto parts are some of the leading reasons why your State Farm car insurance rate could be going up. Thankfully, there are a few ways to lower your State Farm premium.
There are numerous reasons your
car insurance
rate may have gone up, and if you’ve been a loyal State Farm customer, you may be scratching your head at why your premiums are so high. 
As a popular and reputable insurance company, State Farm aims to provide their users with the best coverage for a great price. But there are general factors at play that could result in a higher rate, even with a clean driving record or strong customer-provider relationship. 
Wondering why your State Farm car insurance rate went up over the past year? Let’s take a look at some common reasons and factors that lead to increased rates, plus how to lower your State Farm car insurance premium.
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Why did my State Farm car insurance rate go up?

Your State Farm car insurance rate may have gone up due to your driver profile changing or factors outside of your control. 
For example, nationwide inflation, rising car part costs, and increased accident rates are all causes of higher rates and out of your control. Alternatively, filing a recent claim, increasing your coverage level, or lowering your deductible are all rate-raisers within your control. 
We’ll take a closer look at the reasons and factors that may have affected your car insurance rate, but first, you should try to find out why exactly your State Farm car insurance rate went up.

How to find out why your State Farm car insurance rate went up

The best way to find out why your State Farm car insurance rate went up is by asking the source. Contact State Farm to inquire about the premium increase on your policy. This way, you can directly uncover factors that you may be able to address. 
You could find that there isn’t much you can do to change your rate, but calling State Farm will give you the opportunity to review your policy and make changes where you see fit. 
  • State Farm: (800) 732-5246

Reasons State Farm may have increased your car insurance rate

We’ve mentioned that there are reasons within and out of your control that could explain why your State Farm car insurance rate increased. If you’ve seen a change in your rate over the past year, here are some possible causes:


State Farm’s vehicle insurance rates have increased by approximately 8.4% across the nation due to inflation in 2022. 
Following lockdowns and economic shifts due to COVID-19, many public and private services implemented price hikes that align with the rising cost of living in the United States. Even necessities such as groceries and fuel have gone up due to labor shortages or scarcity of supplies. 
If you noticed your car insurance premium went up over 2022, it may be due to inflation, which is unfortunately out of any policyholder’s control.

Repair costs

Just like groceries, fuel, and public transportation, the cost of car parts has also increased over the past few years. Newer car models are built with more expensive materials, technology, and mechanical engineering, and their parts are also highly in demand. 
The higher the price of repairing or replacing parts of your vehicle, the more State Farm may need to pay if damages occur—which means it will cost more to protect your car.
While car parts have gone up for all types of vehicles and model years, you may not see the greatest rate increase if you drive an older vehicle. But if you own a newer car with better sensors, devices, and materials, you may notice a higher rate on your insurance bills due to the increased repair and replacement costs.

Accident rates

According to State Farm’s recent reports, more than half of drivers check their texts or send messages while driving, while one-third of drivers video call or record videos while behind the wheel. Even with voice-activated technology and intuitive infotainment features, distracted driving is one of the leading causes of accidents, and rates have gone up as more collisions occur. 
The more an insurance provider perceives a risk of accidents where you live and frequently drive, the higher they’ll charge you to keep yourself and your vehicle protected. Even with a clean driving record, you could face a rate increase due to the high possibility of an accident occurring where you reside and drive.

Driving and insurance records

A higher car insurance rate from State Farm may be due to changes on your driving record or insurance policy
Moving violations and at-fault accidents on your driving record will cause your car insurance rate to go up, whereas keeping a
clean driving record
over time can go a long way to lower your premiums. (For example, users who are accident-free with a clean driving record over three years on a State Farm insurance policy can qualify for an accident-free discount.)
Additionally, if your insurance policy is updated with recent claims, a new driver or vehicle on your policy (especially
adding a teen driver
), increased coverage, a lower deductible, a pricier car, a new garaging address, or a lower credit score, you could see an increase in your rate. If you become riskier to insure, you’ll be charged a higher premium.

What factors affect State Farm insurance rates?

We’ve discussed how economic factors out of your control and changing your driver profile can cause your rate to go up. Let’s dive deeper into how things like the specific car you drive and how you drive will impact your State Farm rates.

Your vehicle

Your car of choice will certainly affect your insurance rate. 
Vehicles with a higher price tag are likely to include expensive features and valuable materials that are more expensive to replace in the case of an accident. And if your ride pushes more horsepower than the average vehicle, you’ll definitely be looking at a higher rate. 
Cars that are at a higher risk for damage, theft, or low crash safety ratings will be more costly to insure, whereas vehicles with added safety features and anti-theft devices can get lower rates.
As mentioned before, the newer a vehicle, the more expensive it is to replace or repair parts, so if you’re riding in a model from recent years, you can expect to pay more for insurance.

Your coverage

The coverage levels on your policy will influence the rate you pay. 
Most states have minimum requirements for car insurance, which usually include
liability coverage
and possibly
personal injury protection
(PIP). If you opt for your state’s basics only, you should be looking at a lower rate than if you purchase what’s called a “full-coverage” policy. (Just be aware that these minimums won’t provide any protection to your vehicle, only other vehicles you might damage.) 
Full coverage usually includes
coverage, which add protection to your vehicle after any covered collision or non-collision event.
Uninsured motorist
coverage could also be a great option (and is sometimes required by your state) if you reside in a city with high rates of uninsured drivers. But when you add these coverages or any others to your policy, you’ll inevitably see an increase in your rates for the added protection. 

Your deductibles

With State Farm or any other insurance company, the higher your deductibles, the lower your rate. If you have lower deductibles for claims, the insurance company has to pay a higher proportion of the damages after you file a claim—which means they’ll charge you more for your coverage.
The amount your rate increases shouldn’t be drastic if you choose a lower deductible. But if you can plan for and handle the payout of a higher deductible after an accident, you’ll save money on your regular insurance payments.

Frequency and mileage

Drivers who use their car on a daily basis are more likely to stack up miles, and the higher your annual mileage, the more likely you are to be involved in an accident. If you use your vehicle for business purposes or have an overall annual mileage of more than 7,500 miles per year, you’ll definitely be looking at a higher rate than someone who drives less. 
Alternatively, if you do not frequently drive and your vehicle is designated for leisure use only, you could benefit from a lower rate due to being on the road less and having less of an accident risk.
MORE: Cheap car insurance for low-mileage drivers

Your driving record

Keeping a clean driving record is one of the best ways to maintain a low insurance rate. Any signs of risky behavior on your driving record may result in a higher rate—and it will take time for your rate to recover once a new infraction appears on your record. Even speeding tickets can cause a notable increase in your premiums. 
Stay on your best driving behavior to enjoy a lower rate. 

Your location

Drivers who live and park their vehicles in urban areas will pay more for car insurance than drivers in small towns. 
Vandalism, theft, and accidents are far more frequent in urban areas, making it riskier for State Farm to insure city dwellers. If you live among the hustle and bustle of a big city, you can expect your car insurance rate to reflect the added risk of unpleasant incidents.

Your background: age, sex, and marital status

Unfortunately, insurance providers do not believe that all drivers are equally risky regardless of their age, sex, and marital status. Statistics show that male drivers under the age of 25 are more likely to engage in unsafe driving habits than most other groups. Additionally, single or divorced individuals are more likely to take risks on the road than married drivers. 
Your age, sex, and marital status will influence your insurance premium, and you’ll usually find your rate decreases as you age and if your marital status changes from single to married. However, drivers over the age of 65 may see an increase in their rates again, as senior drivers pose a higher risk on the roads than their middle-aged counterparts.
MORE: The best type of car insurance to get if you’re married

Your credit history

Where not prohibited by law, State Farm uses Credit-Based Insurance Scores to monitor your creditworthiness and risky credit behaviors. 
Just like most insurance providers, State Farm assumes that the higher an individual's creditworthiness, the less likely they are to engage in financial or driving risks. If you have a high credit score, you’re likely a financially stable person who takes minimal chances, and that could also be applied to your driving habits. 
Lower credit scores will contribute to a lower credit-based insurance score, so you could be looking at a higher rate as a result. 

How to lower your State Farm car insurance rate

Notice your State Farm insurance rate went up? Don’t worry—there are a few things that can help lower your premiums. 

Review and remove things from your policy

First and foremost, take a look at your policy and see if there are any lines of coverage that could be removed or any deductibles that could be increased. 
Things like comprehensive coverage, rental insurance, and emergency roadside assistance could be useless on your policy and racking up your premiums. Additionally, your lower deductibles could be increased to bring your rate down, especially if your chances of an accident are low where you live.

Choose the right car

Some cars are cheaper to insure than others, so if you’re interested in a few different options, you should do some research before you head to the dealership. 
Be sure to take a look at theft rates, safety ratings, and general insurance prices for your vehicles of interest. Keep in mind that choosing a car that gets a lower insurance rate could also mean you’re picking a vehicle that’s safer and cheaper to drive.

Maintain a clean driving record

In case it wasn’t already clear, a clean driving record can definitely help to keep your car insurance rate down. 
Safe and collision-free drivers are State Farm’s favorites, and if you exemplify risk-free driving through a clean record, you’ll certainly be rewarded. In fact, State Farm offers accident-free savings to drivers who maintain a clean driving record for three years under their insurance plan!

Drive Safe & Save by State Farm

State Farm’s telematics tracking program offers usage-based discounts to drivers who sign up for trip monitoring. Contact State Farm to set up the mobile app and begin tracking your driving habits to receive discounts of up to 30% off your rate!


State Farm offers a number of discounts to their customers, including the following: 
  • Accident-free discount: up to 25% off rewarded to users who’ve had a car insurance policy with State Farm for three or more years without an accident 
  • Student away discount: you may qualify if a student under the age of 25 is listed on your State Farm policy but they go away for school and only need coverage when they’re visiting home
  • Defensive driving course discount: depending on where you live, you can complete a driver safety course to qualify for a discount from State Farm
  • Steer Clear discount: If you are under the age of 25 without at-fault accidents or traffic violations within the past three years, you could save up to 15% with State Farm
  • Anti-theft discount: savings for vehicles with alarms or additional anti-theft devices 
  • Multi-car discount: up to 20% off your policy if you insure two or more vehicles at the same address for related or married drivers
  • Multi-policy discount: up to 17% off for combining State Farm car insurance with property or life insurance
Be sure to contact State Farm and ask about their available discounts! You may be eligible for more than one, which could bring your rate down significantly. 

Shop around

If all else fails or if you’re simply interested in a better deal, go ahead and shop around for quotes from different providers! Your best bet is to contact three to five providers and compare quotes to find the best rate. 
Keep in mind that if the causes of your rate increase are overall out of your control, you may or may not find a significantly lower rate with another provider. Nonetheless, it never hurts to shop around.
"I thought I was already paying the lowest rate possible for my age group, but
found me a better deal for the same coverage with Travelers! Everything went so smoothly that I couldn't help but make a change right away."—Athit S.
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