Do car insurance rates decrease every year?

I'm paying a lot for car insurance currently. When can I expect my rates to decrease? Does it happen on a yearly basis?

Car insurance companies look at a variety of factors that determine your rate. This can include:
  • Where you live
  • Your age
  • The type of vehicle you drive
  • Your credit history
  • Your driving record
If you maintain a clean driving record and pay your bills on time, you can expect your car insurance to decrease over time.
Carriers often re-rate insurance policies at policy renewal. This could be every six or 12 months, depending on your policy term. If you don’t get into any accidents, submit claims, or have tickets, you’ll likely see a decrease every time.
However, if you already have tickets, accidents, or violations on your record, you likely won’t see a decrease until they start to fall off your driving record. This can take three to five years depending on the state and your insurance carrier.
If you don’t notice a drop in your car insurance rates even after paying on time or maintaining a clean driving record, shop around. As a full-service car insurance broker, Jerry can help you compare rates, switch insurance, and even cancel your old policy without the hassle.”
Emily Maracle
Answered on Aug 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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