Why did my car insurance rate go up?

"I went to renew my policy and my rate went up by $25. I haven't had any accidents or violations, so I don't understand why I'm paying more. Am I being ripped off?"

Answer
“It is common for car insurance rates to change during policy renewal. When your policy is set to renew, your car insurance carrier can review your policy and make any necessary rate changes.
Even if you haven’t had a ticket or submitted a claim, other drivers in your area may have. Car insurance is based on risk and policies are rated in groups.
If drivers who are similar to you are submitting claims, your insurance rates could rise to offset this. Insurance companies need to make sure they have enough money to pay for any potential claims.
To avoid a rate increase every six months, you could opt for a twelve-month policy.
Another option is to shop around. If you’re unhappy with your current rate, comparing prices with another carrier could allow you to find a lower rate.”
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Emily Maracle
Answered on Jul 27, 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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