Why Did My Auto Insurance Rate Change?

Posted in Auto Insurance

September 18th, 2009

All drivers with their own car need auto insurance, and they all want it to be effective, high-quality and affordable. When you first get auto insurance, you’re quoted a certain rate that you pay every month for the policy.

However, the truth of the matter is that the auto insurance you signed up for because it was so affordable can change, and you could find yourself paying more than you planned on. As irritating as it is, the bottom line is that your auto insurance provider can and will raise your auto insurance rates for many different reasons, and sometimes they have nothing to do with you.

Why your auto insurance rate might change

Probably the single-biggest reason for a rise in your auto insurance rate will be the result of your filing a claim. If, for example, you get into a fender-bender in your local supermarket parking lot, and you’re to blame, your auto insurance provider is going to see you as a greater risk than you were when you first signed up for their coverage. So, what this means is that auto insurance providers can raise your auto insurance rates as often as you file a claim. The more accidents you get into, the more rate increases you’re likely to see.

Why your auto insurance rate might lower

Conversely, there’s also a chance that your auto insurance provider will lower the rate they’re charging you. A change in your auto insurance rate could be due to your reaching a certain age. For example, teenagers cost less to insure as they get older. You could also see a change in your auto insurance rate if you reach a certain milestone in your years of problem-free driving, or if you move from a city with lots of crime to a small town with hardly any. Auto insurance providers don’t want to pay for any claims, and so they do employ a reward system for drivers who have few or no problems.