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?
At GEICO, we set car insurance premiums based on what we expect claims will cost that year. Costs can be affected by factors outside your control. For example:
- When gas prices are low, drivers tend to log more miles. More time driving can lead to an increase in accidents.
- Newer cars mean newer technology, which costs more to repair.
- Medical costs are rising, claims payouts for people injured in auto accidents are increasing.
- With mobile devices, people are more distracted while driving, causing an increase in accidents.
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
- 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.
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. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. © 2017 GEICO