Why Did Your Auto Insurance Rate Go Up?

If you’re a good driver it can be very frustrating to see your auto insurance to go up. You’ve never filed a claim, or had anything major happen; the biggest difference between this year and the last is that your car is a year older. Why is your insurance going up?

The two elements that affect your insurance can be broken into two simple categories: “things you can control” and “things you cannot control.”

 Things You Can Control

You are in control of a big part of your auto insurance rate. Many of your day-to-day driving decisions can affect your auto insurance. One of the most common is your driving history. If you file a claim or are convicted of any driving violations, your rate will go up. Risk is always a factor when it comes to insurance prices and these infractions show you are riskier than the next person, and deserve an insurance hike.

Multiple changes in your life or to your policies can also raise rates. There are many changes that can affect your rate: change of address, new drivers added, cancellation of home policy, removing a vehicle from a policy, changing employment, etc. In many cases, these changes usually mean that a discount you were getting is no longer in effect because the new change fell outside the parameters of the discount.

Major driving infractions like a DUI or medical conditions that increase your risk can also raise your insurance tremendously.

Also the insurance company can make a mistake or add charges. Review your policy and ask questions to determine whether or not you are getting the best rate possible.

Things Out of Your Control

One thing people may not think about is the company with which they are insured. If the company receives a stream of claims or costs from the entire volume of their clients, they may increase their rates on all their clients, not just the ones who made claims. This would be completely beyond your control.

This is true for changes that may happen in a particular area. Increased collisions, vandalism, and claims can mean insurance companies see higher risk for people in a certain area; therefore, their rates may go up. Crime can also factor in especially if your car is prone to theft. Adding anti-theft devices to help decrease the risk of theft may help, but you should check with your agent to see if your vehicle falls into a high risk group. Even old cars are prone to theft because some parts are hard to find these days but are still in use by old cars on the road today!


When wondering why your rate goes up every year, make sure you have a full understanding of the factors involved. Keep track of your driving history and when changes mean higher rates and you can have a clearer idea of what triggered the increase.

At Amherst Insurance Agency, we can get you a great car insurance rate from the beginning and keep costs low as the years go on. Plus, if you need any questions answered, we are available to answer questions and search different companies to find you a policy that you will love!

By Jeremy Jensen