Car Insurance Rate Increases & How Premiums are Determined
We recognize that any increase to your premium is disappointing. Sometimes, even if you haven't had an accident or filed a claim, your insurance premiums might go up. Nobody likes paying more, so we'll share some reasons why your rate may have increased.
What factors can influence car insurance premiums?
Many different factors can influence your insurance rates. Below are just a few examples of those factors.
The car you drive, how often you drive it, and where it is kept are all factors used to determine your rate. A car's make and model help determine:
- Expected repair costs
- If theft rates are higher for this vehicle
- Types of safety features installed
If you drive back and forth on a long, daily commute to work or school, your rates may be higher than a person who drives their vehicle less or has a shorter commute. Generally, the more time and miles you put on your vehicle, the higher the chance you may be involved in an accident.
Other items that may be considered include how long you have been driving, your driving record, and your claims history.
Why Rates and Quotes May Differ
To help ensure you receive an accurate quote, it's important to provide complete and accurate information. Inaccurate or incomplete information can cause the quote amount to differ from the actual rate for the policy.
Some example situations that may lead to differences between the quote amount and the policy rate:
- If you start a quote with only a vehicle make and model but no vehicle identification number (VIN), your rate may change after you enter the full VIN.
- If you leave out information in the quoting process about accidents you've been in (even minor ones), your policy rate may be higher.
- If you forget to provide details about your significant others' driving history, such as speeding tickets, this may lead to a higher rate.
Making sure you have the right information can make the process of getting a quote easier. You will need to have:
- A valid driver's license
- Vehicle identification numbers (VIN) for all vehicles
- The address where the vehicle will be stored
You will also be asked about driving history for you and any other drivers on the policy. To get an accurate quote, it is important to be accurate and complete as possible with the information you provide.
If you decide to purchase a policy and elect to pay your premium in installments, it may result in an additional fee for each installment payment. This can also change the amount you expected to see on your bill.*
What can cause your auto insurance rate to go up?
A variety of factors can go into how we determine your car insurance rate. Here are a few personal factors that can affect your rate when your policy renews:
Change in Coverage
- Any changes in your coverage can change your rate
- Log in to your policy to review your coverages
Change in Discounts
- You may have lost eligibility for a discount you were receiving
- A discount may no longer be available
- Accidents that result in a claim can impact your rate
- Speeding tickets may increase your premium
- Your qualification for discounts may also change based on your record
- If you move, your premium could increase or decrease
- Marriages, newly licensed drivers, or birthdays can all change your rates
- Different makes and models have different repair costs
- Newer cars may have enhanced safety and security features
When GEICO sets your premium, we also consider our overall group of insured drivers. You're sharing the risk with a pool of drivers.
Insurance works by transferring the risk from you to us, your insurance company, and to a large group of other people. The cost of repairs, injuries, and damages is shared among those policyholders. That way, you're covered if something catastrophic happens.
How does GEICO try to control car insurance costs?
We're constantly working on ways to control costs and offer affordable car insurance to our customers.
- Multiple options for car insurance discounts
- Coordinated countrywide responses to weather catastrophes
- Driver education programs on the dangers of distracted driving
- Fraud fighting teams and special investigators
- Strong Auto Repair Xpress® network
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
Some discounts, coverages, payment plans, and features are not available in all states or all GEICO companies.
*Certain payment plans may not be available in all states. The fee amount will be shown on your billing statements and is subject to change. Florida policies issued by GEICO or GEICO General with only person injury protection (PIP) and/or property damage coverage must be paid in full.
We're here for you 24 hours a day, 7 days a week. The quickest way to contact us is through our app or online. You can also chat for immediate help.
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