Why does my car insurance rate increase every 6 months?

"Every time my policy renews, my car insurance has been increasing by $30. I haven't had any accidents or tickets.

Whenever I call my insurance carrier, they tell me everyone's rates are increasing. Is this true? Does everyone have this problem?"

Answer
“Every state has a Department of Insurance and Financial Services. This regulates insurance at a state level and car insurance carriers are required to follow these regulations.
This means that states can implement a state level car insurance rate increase. This could be why your rates have been increasing consistently. This would also be why rates would increase for every policyholder.
Another reason why your rates could be increasing is due to the amount of claims in your area. If policyholders in your state or area are submitting more claims, your insurance company could be increasing rates to offset this.
Car insurance is risk based and pays claims out of a premium pool. If more policyholders are submitting claims, the amount of money in the pool is reduced. Car insurance companies need to increase rates to ensure they will have enough money to cover claims.”
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Emily Maracle
Answered on Jul 26, 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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