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Why Did My Auto Insurance Rates Go Up?

From crashes to where you live, many factors can affect your car insurance rates.

insurance rates

Rate increases are an inevitable part of having auto insurance. Insurance rates go up for a variety of reasons. Fortunately, there are steps you can take to control or prevent most of them.

Factors You Can’t Control

Insurance Company Decisions 

Some scenarios that lead to higher insurance rates are simply out of the policyholder’s hands. For example, a carrier may find that they need more funds to ensure they have enough to pay out claims in a state where expenses are higher.

Age and Location

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.

Where you call home could also have an impact on your auto insurance rates, as certain cities are more prone to crashes or have a higher rate of vehicle thefts. Some will even require drivers to have glass coverage for their windshield, which could lead to a more expensive premium.


Insurance rates go up for all drivers due to the fraudulent practices of a few. Examples include drivers who moved but didn’t report it, parents who don’t add teenage drivers to their insurance plans to prevent increases, staged accidents and drivers who ask for higher estimates at body shops. Unfortunately, these actions affect what others pay for auto insurance rates.

insurance rates

How to Curb Insurance Rate Increases

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.

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If your car insurance rates have recently gone up, ask your insurance agent if you have had any discounts recently expire. While you’re at it, ask if you or your family members qualify for any additional discounts like a good driver, auto club 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. Make sure you’re not missing out on these savings!

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. Visit for information on AAA defensive driving classes.

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

  • Roald D.

    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.

    • Marisa P.

      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

  • Susan Z.

    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.

    • Marisa P.

      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.


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