The 12 Real Reasons Your Rate Increased
Even without claims or violations, these factors can increase your premium:
What to Do When Your Rate Increases
Step-by-step response plan:
1. Call your insurer and ask specific questions:
- "Exactly what factors caused my rate increase?"
- "Did my credit score, ZIP code, or vehicle rating change?"
- "Are there discounts I'm not currently receiving?"
- "Was this an industry-wide rate filing?"
2. Review your policy documents:
- Compare last year's declarations page to current year
- Check for removed discounts or changed coverage
- Verify all personal information is accurate
3. Check your credit report:
- AnnualCreditReport.com (free from all 3 bureaus)
- Dispute any errors
- Plan to improve credit if it dropped
4. Shop competitors:
- Get quotes from 5-10 insurers
- Provide identical coverage levels for comparison
- Many drivers save $300-$600 by switching after a rate hike
5. Negotiate with your current insurer:
- Show competitor quotes
- Ask: "Can you match or beat this rate?"
- Request a policy review to find new savings
6. Consider adjusting coverage:
- Raise deductibles from $500 to $1,000 (saves 15-25%)
- Drop comprehensive/collision on vehicles worth under $3,000
- Reduce coverage on low-risk vehicles
7. File a complaint if necessary:
- If rate increase seems unjustified, contact your state's Department of Insurance
- They can investigate whether the rate filing was approved and applied correctly
When It's Worth Switching Insurers
Switch if:
- Your rate increased 15% or more without claims or tickets
- Competitor quotes are $300+/year lower
- Your insurer can't clearly explain the rate increase
- You've been with the same insurer 5+ years (loyalty rarely pays)
- You found errors in your policy and insurer won't correct them quickly
Stay if:
- Rate increase is under 10% and matches market trends
- Competitor quotes are within $100-$200/year
- You have a complex policy with multiple discounts that would be hard to replicate
- Your insurer offers exceptional customer service or claims experience
Pro tip: Even if you don't switch, shopping around gives you negotiating leverage. Insurers often offer "retention discounts" to keep customers who threaten to leave.
Frequently Asked Questions
Car insurance increases without accidents are usually due to industry-wide rate increases (40-60% of cases), credit score changes, ZIP code risk adjustments, aging into higher-risk brackets, or state-mandated coverage increases. Insurers recalculate risk annually based on 15+ factors beyond your driving record.
No, you cannot refuse a rate increase if it's been approved by your state's insurance regulator. However, you can shop for a better rate with competitors, adjust your coverage, or work to improve factors within your control (credit score, mileage, etc.).
Average car insurance increases range from 5-15% annually without claims or violations, primarily due to inflation, rising repair costs, and industry trends. With claims or tickets, increases can be 20-50% or more.
If your rate increased 15%+ or competitor quotes are $300+/year lower, switching is usually worth it. Shop 5-10 insurers, compare identical coverage, and factor in the value of your current discounts and service quality.
No. Insurance quotes use soft credit inquiries that do not affect your credit score or insurance rate. You can get unlimited quotes without any negative impact.