Apr 4, 2019

8 Reasons Why Car Insurance Rates Increase

One of the most frustrating things for most drivers is the steady, upward creep of their car insurance rates. There are several reasons why this happens and some are more obvious than others. Consider these eight common factors for car insurance rate increases to see which ones have most likely resulted in your higher rates.

Reasons for Rate Increases

The most common reasons for increased car insurance rates are:

1. You Moved. If you changed your address, your rates are likely to go up, especially if you moved to a place where there are more incidents of accidents or stolen vehicles than the place you moved from. Moving from one state to another will impact your rates but they could go up or down.
2. Change in the Neighborhood. Even if you haven’t moved, if your neighbors are buying more expensive cars or hybrids that cost more to repair or replace, your rates are likely to go up. The same is true if there has been an uptick in car thefts or vehicle break-ins in your area.
3. Your Driving Record Changed. If you were involved in several accidents or accumulated a significant number of speeding tickets in a relatively short amount of time, your rates will increase. They will go even higher if you are convicted of driving under the influence or another significant charge.
4. Changing Your Policy. If you had a bundled policy that included your homeowners’ insurance and then dropped that portion of your policy, you are likely to see a rate increase for your car insurance. Your rates may also rise if you remove a car from the policy that had given you a multi-car discount.
5. Purchasing a New Car. A new car, even a new used car, is likely to be more expensive to replace than what you are currently driving. For this reason, the purchase of a new vehicle will likely increase your rates.
6. You Added People to the Policy. Adding drivers will increase your rates. Adding a new or teenage driver to your insurance will raise them even more.
7. Increase in Severe Weather. Scientists predict that we can expect more severe weather including the increase and severity of hurricanes and tropical storms. As the number of these incidents rise in your area, so will your car insurance rates.
8. Poor Economy. When the economy is poor, some insurance companies raise their rates to offset the cost of claims and keep themselves financially viable.

While you can’t change these factors, you don’t have to live with an out-of-control car insurance rate. At Alliance, we are experts in finding the best insurance for your needs and we represent the leading insurance companies in Florida. Simply fill in this form to get a free quote or call (866) 771-4715 to speak with one of our knowledgeable agents. Contact us today to get the car insurance you need at a price you can afford.

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