Why do car insurance rates change?

When I first started my car insurance policy, I was paying $130. It recently went up to $145. I haven't had an accident. Is there a reason why car insurance rates fluctuate?

Car insurance companies look at many different aspects when determining a rate. They change rates often depending on claims and state regulations. Even if you’ve been accident-free, your rate could change if you’ve had a moving violation or something has changed with your coverage or vehicle.
Other factors that cause rates to fluctuate are out of your control. For example, a near 5% increase in new car prices and a 10% rise in used car prices means that insurance companies have to raise their rates to cover the costs of repairs or totaled vehicles.
If you want to lower your rates, ask your agent about insurance discounts for bundling home and auto insurance, multi-car discounts, good student discounts, or other discounts that may apply to you or your family.”
Emily Maracle
Answered on Jul 29, 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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