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5 Reasons Your Car Insurance Rate Keeps Rising

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5 Reasons Your Car Insurance Rate Keeps Rising

Have you noticed that your auto insurance premiums have been getting more expensive? You’re not alone; many drivers are feeling the squeeze of rising insurance rates. Below, we give some common reasons your car insurance rate keeps rising, including some that are in your control and some that aren’t.

Your Driving Record

First, we’ll start with one factor you can control: your driving record. Odds are, if your car insurance rates consistently increase year after year, it has something to do with how you’ve been driving. Accidents and collisions due to reckless driving will increase your risk factor and affect your policy rates. Speeding tickets and other moving violations will also cost you in the long run, so if you want to save on your annual premium, slow down and focus more while driving.

Age of the Car

It may not be how you drive, but what you’re driving that’s causing your insurance to increase. While a new car is more expensive to insure, an older car is generally considered less safe—especially if it doesn’t have modern driver-assist and safety features—and more likely to break down. If your insurance policy gets more expensive each year but your driving record remains spotless, that could be a sign it’s time to buy yourself a new car.

Where You Live

Another reason your car insurance rate keeps rising could be the zip code the vehicle is registered in. Even within the same city, insurance rates can vary by zip code due to the rates of accidents, moving violations, and theft. If your neighbors and other drivers in your community have filed more claims than usual, your insurance company may adjust your policy despite you not doing anything wrong.

Your Credit Score

The reason your car insurance rate keeps rising may have nothing to do with your driving, car, or where you live but your credit score. Your credit score is a factor in adjusting your insurance rates, as insurers use it to gauge the likelihood of you filing a claim. If your credit score has taken a hit recently, it could also lead to a bump in your insurance premiums.

Inflation

Lastly, car insurance isn’t immune to inflation—it’s one of the industries hit hardest by the cost of living crisis. The price of new and used cars has dramatically risen in recent years, meaning ensuring all these cars costs insurers more. Everyday vehicles are also much more advanced and computerized, which means they require more expensive parts and skilled labor to manufacture.

Many factors go into determining a person’s car insurance rate, but often, these reasons are the core justifications for an auto insurance rate hike. The best an individual can do is drive safely, invest in security measures, and be as fiscally responsible as possible.

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Meet Jannese

Jannese Torres is a award-winning Latina Money Expert, Educator, Speaker, Writer and Business Coach. She became an accidental entrepreneur after a job loss led her to create a successful Latin food blog, Delish D’Lites. Now, she helps her clients and listeners build successful online businesses that allow them to pursue financial independence and freedom.

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