insurance rates

Why Did My Auto Insurance Rates Go Up?

You may have received your latest bill and asked yourself, “Why did my auto insurance rates go up?”

Auto insurance premiums are expected to increase by 12.6% in 2024, according to The State of Auto Insurance in 2023 report by LendingTree, a total increase of 29% since 2018.

If you haven’t made a claim recently or have a near-perfect driving record, it might not make sense. But rate increases are an inevitable part of having auto insurance. There are many reasons why premiums go up, and some are unfortunately out of the policyholder’s control.

Current Events

As we deal with skyrocketing inflation and other expensive realities of today’s world, insurance companies are forced to respond.


With record-high inflation rates, the hard truth is insurance companies have higher bills to pay, too. “Inflationary pressure is increasing the cost of repairs, car rentals and vehicle replacements,” according to the American Property Casualty Insurance Association.

When prices go up, so must insurance.

Cars Have Changed

Modern cars are more than cars. They’re more like computers on wheels.

Take windshields, for example. They aren’t just protective glass anymore, they often include all the technology for advanced driver assistance systems like dynamic cruise control and lane assist, dramatically increasing the cost to repair or replace them.

Because the cost of all significant technology is high compared to what it used to be, repair costs for a newer car could double that of an older model.

It’s an unfortunate set of circumstances that accident rates are increasing at the same time costs of car repairs and medical care are going up.

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More Reasons for Auto Insurance Increases

How you drive

Obeying speed limits and traffic laws can dramatically affect your insurance costs. Likewise, the miles driven per car per year can earn a discount or create a greater charge for your auto insurance. Ultimately, the safer a driver you are, the more you can reduce your insurance premiums.

Where You Live

A carrier may find that they need to charge more due to higher claims paid in a state where expenses or litigation is higher. Congested cities may be more prone to crashes or have a higher rate of vehicle theft, which could lead to that more expensive premium.


Drivers who put newly licensed teenagers on their insurance policies will see their auto insurance rates increase, since teenagers are typically involved in more crashes than any other age group. Although, as new drivers build experience without crashes, rates do come back down.


Insurance rates for all drivers reflect costs due to the fraudulent practices of the few. Examples include drivers who moved but didn’t report it, parents who don’t add teenage drivers to their insurance plans to avoid costs, staged accidents and drivers who ask for higher estimates at body shops.

questions about auto insurance

What You Can Do

Review Your Insurance

This is a good time to get in touch with your insurance agent. Talk to a professional to review what level of coverage you have and go into the conversation with an understanding that costs, in general, have changed.

While some increases are unavoidable, there are some offsets that you can look into. For one, you can consider updating your deductible. If you can handle a higher deductible, it can help to lower your monthly premium.

A review of your insurance policies is recommended annually. Your agent will try to do as much as possible to make sure that you are getting the most from your insurance. There is no cost, and it only takes about 15 minutes.

Improve Your Credit Score

While Massachusetts doesn’t allow it, most states permit credit scoring to help determine auto insurance premiums. Keep on top of your credit score and challenge any errors you find.

Ask About Discounts

While reviewing your policy, ask your agent if you’ve had any discounts recently expire. And while you’re at it, ask if you or your family members qualify for any additional discounts like a good driver, AAA or good student discount. Some providers also offer rate reductions for safety features on your car, paid-in-full discounts, multi-vehicle discounts and bundling home and auto insurance policies together.

Depending on the state where you live, drivers can also receive an auto insurance discount for completing a defensive driving course. The fee to take the class is nominal and the discount usually lasts for several years.

Sign up for a AAA defensive driving course.

Avoid Crashes and Violations

Being a safe driver is one surefire way to keep your rates down.

Drivers who get into a lot of crashes or accrue too many speeding tickets will likely see a surcharge or have their insurance tier adjusted. The tier system is a relatively new way of doing things in the insurance industry, in which those with the least number of occurrences pay the lowest rate.

Insurance providers use tiers to rank customers based on their risk of being involved in another vehicle mishap. While not many people like to be ranked, the industry uses the system to get a more precise evaluation of your driving habits and it sometimes helps prevent rates from skyrocketing for a driver just because of one accident.

What You Shouldn’t Do

Plenty of people that have older cars think about dropping collision and comprehensive, but comprehensive – which protects you from damages not caused by a collision, such as theft, vandalism, storms and animals – is relatively cheap coverage that is smart to keep.

And if you think stopping coverage for a period of time will save you money, it will actually end up costing you more in the long run. “Do not remove your car from your insurance,” stresses Ray Eng, senior vice president of insurance sales at AAA Northeast. An insurance lapse will result in a penalty as soon as you try to reinsure.

Better Safe Than Sorry

Seeing your auto insurance rates increase is undoubtedly frustrating.

Like groceries and gas, “many view insurance as another consumable,” said Eng. “They may wonder, if I haven’t consumed anything (made any claims) why has my rate gone up?” It’s just the reality of the situation right now that insurance prices need to go up with everything else.

Eng suggests looking at it a different way. “The fact of insurance is not if you have a claim, but what would you like to see happen if you were to have a claim,” he said.

Although you might not love paying a higher price for your insurance, you’ll be thankful to have it if you ever need it.

To learn more about coverage options and savings opportunities, get in touch with a AAA Insurance agent today.

13 Thoughts on “Why Did My Auto Insurance Rates Go Up?

  1. My insurance went up 3x almost this yr, Got a newer car, not brand new, no accidents, only cat cone thefts not my fault.
    Go figure……….looks like AAA wants to get richer on my dime………..Unfair.

  2. I’ve had AAA auto/renters/membership insurance since I was a teen. I’ve never had an accident, had to file a claim, or had any speeding tickets. I’ve driven the same car the entire time. My insurance nearly doubled this year. They told me it’s because of “inflation”. I’m furious. It has nothing to do with inflation and everything to with squeezing money out of their loyal clients. I’m switching all my insurance over and suggest all others do the same.

  3. My insurance premium has jumped up by almost $400.00 from last year. This despite the fact that I have 0 zero claims, and no tickets or accidents in that same period. I am disappointed and find it hard to believe that my insurance premiums would increase that much. That is roughly a 30 percent increase over last year.

  4. My rate jumped up by over 23%!!! That is way off from the “expected” 8.4%. How is that justified?
    According KBB and other online sources, car values have been dropping from 2022.

  5. my rate went up after 6 months from 297/ mo to 430/ mo for 3 cars one full coverage the others no fault. I’m very irritated and i need answers. I understand rates went up but that’s an extra 44 bucks per vehicle. please explain this someone

  6. I live in Chicago. My rate went up 28% from my last premium six months ago for my 2017 car. No accidents, my AAA Drive score has not changed. The AAA rep said costs are going up for repairs etc.

  7. I have been with AAA auto/renters/home/umbrella since 2005. In the last 6 months my insurance rates have went from $227.96 in 2019 to $296.58, now. I have no claims, no tickets, no accidents. I have excellent credit. I do not understand how you treat your loyal, auto pay customers. I would like someone to contact me to explain how and why it would go up $68.62 in 4 yrs when someone doesn’t file a single claim, accident or ticket. Please stop giving the BS excuse of “it’s inflation”, because my paychecks haven’t inflated that much in 4 yrs.

  8. Big jump in premium at Minneapolis AAA for my insurance. Almost 21% increase vs the premium 6 months ago. Outrageous hardly says it. Makes no sense.

  9. I have been with AAA for a long time I’m 65 years old never had a ticket in my life I had a 2018 Chevy Silverado I had it as a lease I took it back and got a 2011 Chevy avalanche you turned around and raise my rate by 20 some dollars really what the heck is really going on here. It has a Bluetooth alarm on it it stays in my garage when I’m home My Work is only 3 miles away from my house really people not a happy camper.

    1. Hi Susan, I’ve forwarded your comment to one of our insurance specialists. An insurance agent should be in touch soon to answer your concerns. If you’d like, you can also click here to schedule an appointment with an agent at your convenience.

  10. Why have my auto policies costs gone up this past billing? No claims have I had and in almost 1 and 1/2 years, the most any vehicle has been driven is 10 miles one way.

    1. Hi Roald – There are some reasons that auto policies go up that are no fault of your own and may be increased because of the needs of the carrier or state. We suggest reaching out to your insurance agent to go over your policy and any questions you may have. Click here to get in touch with a AAA Insurance agent. Thank you for reading! -MP

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