bill every six months when your policy renews. Increases can be caused by changes to your driver profile such as a new accident or vehicle, or by industry forces causing insurers to adjust their premiums.
The good news: You don’t need to accept rising rates as a part of life. Instead, you can keep your auto insurance premiums low by comparison shopping.
Rising insurance industry costs can raise rates for everyone
Right now, market forces are pushing car insurance rate increases across the board. Even if you haven’t had a claim, accident, or change to your driver profile, you’ve likely seen your car insurance go up at least once in the last year.
Experts predict that these increases will continue through 2024, thanks to the following factors:
Inflation: Inflation causes insurance companies to pay more for everything—including car repair costs, medical expenses, administrative costs, and more. To stay profitable, they pass these costs on to consumers in the form of higher premiums.1
Rising repair costs: In addition to inflation, pandemic supply chain shortages and rising car values have contributed to ballooning auto repair costs, which in turn increases the size of claims. 2
Dangerous driving: Since 2021, risky driving habits like speeding, distracted driving, and road rage have risen, contributing to more serious accidents and major claims. 3
VP Insurance Operations, 18+ Years Experience in Insurance
The cost a carrier has to pay for a claim, which is referred to as ‘severity,’ has gone up. This is due to inflation, record-high car prices, car parts shortages and high prices and labor shortages.
Unfortunately, inflation is a fact of life, so you can usually expect at least a small insurance increase when your policy is renewed. Compare quotes with
Your insurance rates will likely go up at least a little due to rising repair and medical costs nationwide—but you might also pay more if your driving profile has changed, the area where you live is considered more high-risk, or there are new auto accidents, violations, or claims on your record.
Your driving record and claims history impact your rates
Speeding tickets and other moving violations: Every new ticket for speeding, running a red light or stop sign, or DUI will raise your insurance premium—if you tend to get pulled over every few months, you’ll see an increase each time your insurance renews.
Accidents: You probably know that an at-fault accident will raise your rates, but you might be surprised that some insurance companies will raise your rates if you get into a car accident caused by someone else, as well.
Comprehensive claims: If your car is stolen, a tree branch crushes it, or a deer runs in front of you while you’re driving, it would be covered under
(if it’s part of your policy). And while none of these incidents is your fault, you might still see a premium increase after filing a comprehensive claim.
In addition to a premium increase, a new blemish on your driving record could cause you to lose any safe driver, claims-free, or accident-free discounts on your policy, which could impact your rates even more.
Focus on driving as safely as possible when you’re behind the wheel. If you can avoid any further accidents or claims, your rates will gradually start to come back down over time.
You might also be able to find cheap car insurance by choosing an insurance company that’s more forgiving of a less-than-perfect record.
Changes in your driving profile could cause your rates to go up
Insurance companies like safe driving, safe vehicles, and low claims. Any changes to the risk factors on your personal driver profile could cause your rates to increase.
Age: Insurance costs are typically lowest for drivers who are between the ages of 25 and 75—so if you’ve recently hit your mid-70s, you may notice your rates starting to go up at renewal.
Credit score: In most states, insurance companies are allowed to
when setting their premium. If your credit score is on the decline, you may notice your rates going up when your policy renews.
New car: Expensive cars, like EVs and sports cars, can raise the cost of your insurance coverage. If possible, invest in a used car with excellent safety features instead.
Driving more than average: At renewal, your insurance company may ask you to self-report the miles you drive, or they may request an accurate odometer reading. If your average daily mileage goes up—like you take a job with a longer commute—your insurer could raise your rates.
Your telematics driving score: If your insurance company tracks your driving with an app or a device, they may be able to raise your rates based on unsafe driving behaviors. Whether your driving score can cause your rates to go up will depend on your insurer and the state where you live—California drivers are typically ineligible for telematics.
Compare rates to find the best car insurance for you—like an insurance company that offers low rates to
, drivers with poor credit, or high-mileage drivers.
Insurance rates may go up for your zip code
Higher theft rates: If there’s a spike in crime in your community, you could be at an increased risk of filing an insurance claim due to car theft or vandalism, so rates may go up for everyone in your zip code.
Severe weather: Widespread damage due to severe storms and other
can be costly for car insurance companies. If your area is at a higher risk of major catastrophes, premiums will go up for everyone nearby.
Uninsured drivers: A higher rate of uninsured drivers in your area means a higher risk of getting into an accident with someone who doesn’t have liability coverage. Since that means insured drivers have to file a claim with their own insurer (if they have the
A few weeks before the end of your auto insurance policy term, your insurance company will send you a renewal notice that includes your new car insurance premium. Once you have that number, get insurance quotes from several providers—another insurance company may be willing to offer you a lower rate.
If you find auto coverage with Jerry, you can turn on the reshopping feature and you’ll be automatically notified before renewal if another insurance company can provide cheaper coverage.
, you can turn on the reshopping feature and you’ll be automatically notified before renewal if another insurance company can provide cheaper coverage.
In minutes, Jerry can help you compare quotes from over 55 carriers, finding you the best coverage at the best rate.
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FAQs
Is it normal for your car insurance to go up every six months?
Yes, unfortunately, it’s fairly common for auto insurance companies to raise insurance prices when a policy renews.
Why did my car insurance go up when nothing changed?
If you haven’t made any changes to your coverage and you haven’t had any new traffic violations, accidents, or claims on your record, your rate increase is probably due to regional or industry-wide factors. The average cost of car insurance increased by over 25% in the last two years.
Does car insurance always increase?
Not always, but it is common for your car insurance costs to go up when your policy renews.
Is it cheaper to pay insurance every six months?
Yes, you can usually save on your car insurance policy by paying your policy in full.
What factors contribute to the regular rate hikes in my insurance?
Your driving record and claims history, where you live, and economic factors can all contribute to regular insurance rate increases.
How can I save on my insurance?
The best way to save on your insurance is to get car insurance quotes from several insurance providers. You can also look for
, like good student discounts, safe driver discounts, or bundling your homeowners insurance (or renters insurance) and auto policies. Most insurers offer discounts, but eligibility terms vary.
Meet our experts:
R.E. Fulton
Licensed Insurance Agent —Senior Content Writer
R.E. Fulton is an expert insurance writer specializing in car ownership topics from car shopping and loan advice to insurance and repair guides. R.E.’s mission is to create unique and accessible content that helps readers to become more successful and independent car owners. R.E. has written and edited over 900 high-performing articles for Jerry, with an average of 1 million+ views.
As a senior writer on Jerry’s editorial team, R.E. draws on over 10 years of experience as a professional writer and digital publishing specialist. Prior to joining Jerry’s editorial team in 2021, R.E. worked as a writing coach at Columbia University, the Rochester Institute of Technology (RIT), and the University of Rochester. They serve as a managing editor for peer-reviewed history publication Nursing Clio, where their work has appeared regularly since 2015.
Sarah Gray
Licensed Insurance Agent — Expert Insurance Writer and Editor
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car.
Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.
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