Car accidents and traffic violations are common explanations for insurance rate increases, but there are other factors that can cause your car insurance premiums to rise. Credit-based insurance scores, rare discounts, and your age are all factors that auto insurers use to price their policies. In most states, costs are currently rising, and your actions as a policyholder can also affect what you pay. For example, adding another car or a teen driver to your policy will increase your costs, while removing a car or driver from your policy will decrease them.
Most of the time, your car insurance increases due to changes in your driving history. If you're involved in a car accident or get a traffic ticket, your premiums will be more expensive. Additionally, the number of drivers on the road is increasing, which is causing rates to rise across the country. Your car insurance rate may also be affected by the cost of living in your area.
If there are narrow, crowded streets that are full of cars or there is a higher chance of car theft, your insurance rate could go up. Similarly, if your city has a high rate of theft, accident, and weather-related claims, it's riskier for an insurance company to cover drivers in your area. If you buy a more expensive car, your rate is likely to increase as well. This is because it's more likely to be stolen and its repair or replacement will cost more than your old vehicle.
Additionally, if there are general increases in expenditures such as healthcare and wages, this could cause your rate to go up as well. Keep in mind that insurance companies will not increase your rate due to an immovable violation such as a parking ticket. If you're unsure why your rate has increased, talking to your insurance agent can help you understand how you can lower it and why you should or shouldn't change your policies. From a risk perspective, insurance companies often view older drivers the same way as teenage drivers.
Finally, if there are a bunch of auto insurance claims after an ice storm across the country, this may mean a rate hike for you months later. This is because insurance companies are exhausting policy limits to cover rising costs of medical expenses. Overall, car accidents and traffic violations are common explanations for insurance rate increases, but there are other factors that can cause your car insurance premiums to rise as well.