Why Did My Car Insurance Go Up? 5 Factors That Impact Your Rate

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.

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 cause your rate to go up when your policy renews:

Change in Coverage

  • Any changes in your coverage can potentially increase your rate.
  • A lapse in insurance can signal higher risk, often resulting in higher premiums when coverage is reinstated.
  • Log in to your policy to review your coverages.

Change in Discounts

  • If you receive a traffic violation or get in an accident, you may lose discounts related to safe driving, leading to higher premiums.
  • Removing a car from your policy can eliminate a multi-vehicle discount, raising the premium for the remaining vehicle.
  • An insurer might discontinue a specific discount, leading to higher monthly rates.

Driving Record

  • Accidents that result in a claim can impact your rate, especially if you were determined to be at fault.
  • Depending on your state, non-at-fault accidents may be considered when determining your premium as these may be indicative of an increased risk for future claims.
  • Speeding tickets and other violations such as DUI/DWIs, reckless driving, and driving without insurance may increase your premium.

Comprehensive Claims

  • Claims for theft, vandalism, hail damage, etc. can increase rates if multiple claims are filed within a short period.
  • If these types of claims are common in your area (e.g., high crime rates or frequent severe weather), insurers may adjust rates to reflect the elevated risk.

Life Events

  • Relocating to high-traffic ZIP codes can result in higher liability and collision premiums, while moving to areas with less congestion and crime rates may lower your premium.
  • Marriage can introduce new discounts as you combine drivers and vehicles onto a single policy.
  • Adding a newly licensed driver can often increase your rate due to an increased risk of accidents among inexperienced drivers.
  • Birthdays, specifically for young drivers and seniors, can impact premiums as rates may go down as a youthful driver gains more experience while seniors may see their premiums begin to rise due to increasing risk.

New Car

  • Different makes and models have different repair costs; for instance, a Honda Civic typically has lower repair costs due to its common parts, while a BMW 5 Series incurs higher costs because of the specialized parts and labor required.
  • Newer cars may have enhanced safety and security features, such as blind spot monitoring, collision avoidance systems, and GPS tracking, that reduce premiums.

Why Your Car Insurance Quote Might Differ From Your Actual Rate

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 the driving history of yourself and other drivers on the policy, 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 the driving histories 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.

The Role of Risk Pooling in Car Insurance Rates

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. It is also the most common reason that rates will increase.

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

How to Lower Your Car Insurance Premium

Fortunately, even if the factors mentioned above aren't currently working in your favor, there are still several steps you can take to help manage your car insurance rates.

Key efforts that fall within your control include:

  • Practicing safe driving habits: Maintaining a clean driving record by avoiding accidents and traffic violations can lead to lower premiums as insurers reward safe drivers.
  • Enrolling in telematics programs: Participating in a telematics program that monitors your driving behavior (such as acceleration and braking) can earn discounts for safe driving.
  • Opting for paperless billing: Choosing paperless billing can lead to savings on your premium, as many insurers offer a discount for digital communication and payments.
  • Reviewing coverage for possible savings: Regularly reviewing and adjusting your coverage to reflect your current needs (such as reducing unnecessary coverage on older vehicles) can help lower premiums.
  • Increasing deductibles: Raising your deductibles reduces the insurer's risk, which can result in lower monthly premiums—but it also means you'll pay more out-of-pocket in the event of a claim.
  • Exploring available discounts: Taking advantage of available discounts, such as multi-car, good student, or bundling, can significantly reduce your premiums.

So, if you're a new driver who's recently moved to a high-traffic area and has made a recent claim—take a deep breath, relax, and know that there are many ways for you to bring your car insurance rates down over time.

Please note:

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.