Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Jul 14, 2021

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In a nutshell...

  • There are many factors that influence the price that you pay for car insurance coverage
  • Every time your policy term ends, the auto insurance company is able to evaluate your policy
  • If your rate is going up, you will receive word from your car insurance company

Receiving news that your auto insurance rate will be going up for the next policy term is never fun to deal with.

If you find out that this is happening to you, you should check with your car insurance provider to find out why it is happening.

In many cases, the auto insurance company may be instituting rate increases for all drivers because the cost of providing auto insurance coverage has increased for the company.

There may also be specific factors that influenced the rate increase for your particular auto insurance policy.

Enter your zip code above to find car insurance rates that work with your budget!

A Few Things that Influence Your Auto Insurance Rate

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One of the most significant factors that you can influence your auto insurance rate is your driving record.

If you were involved in one or more accidents recently that were your fault, this will likely increase the rate that you must pay for auto insurance coverage.

On the other hand, if an accident was not your fault, then this should not affect the amount that you have to pay for car insurance coverage.

Auto insurance providers also check out whether you have received any tickets for traffic offenses, such as speeding.

As a result, your rate is likely to bump up a bit if you have one or more traffic tickets on your driving record.

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How to Take the Sting Out of an Auto Insurance Rate Increase

If you find out that your rate may be going up for your car insurance coverage, you should immediately find out if there are opportunities to save some money with your current company.

This could include discounts for driving only a limited number of miles on your car, insuring multiple cars with the same provider or having multiple lines of insurance with the same company.

The best way to know for sure which discounts might be applicable to your rate is to speak directly with a representative from your insurance provider.

Every company has a different way of assessing discounts and setting their rates, which is why it is always best to find out directly from the source.

What to Do Next if You Cannot Afford Your New Rate

If you find that you would be paying even more if you switched to another car insurance company, then you have the option of dropping some of your coverage in order to stay insured.

If you make changes to your existing auto insurance policy, you want to always be sure that you do not reduce your coverage below what is required by the law of your state.

The coverage minimums are different for each state and must be met to avoid paying fines or having your driver’s license suspended.

Another option in dealing with your current auto insurance provider is to lower the policy limits.

This means that the insurance company would have to pay up to a lower point for damages that you cause in an accident.

The downside of taking this approach is that you may find yourself having to pay out of your own pocket for damages in an accident.

If your policy agreement changes, it is important to have a new copy of that so that there are not any issues that arise if you have questions about your auto insurance coverage after an auto accident.

Why Your Auto Insurance Rates May Have Gone Up

There is a long list of reasons why you could find yourself paying more for auto insurance.

One of the most obvious things that can increase your rate is if you are involved in an auto accident that was your fault.

In general, the auto insurance provider may be increasing rates across the board because of changes in the way it is providing coverage and the costs associated with covering drivers.

If you find that your rate is going up, you can ask your auto insurance company what prompted the rate increase.

Along the same lines, you should also ask about potential discounts that you could take advantage of to defray the cost of a car insurance rate increase.

Enter your zip code below to compare car insurance rates from multiple companies at once!