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Why did my rates go up when I have a clean driving record?

I don't understand why my rates are so high. I have a clean driving record with no claims or tickets, so I didn't expect this. I'm also on disability with a fixed income. Is there a reason the price of auto insurance has gone up so much?

Feb 8, 2024 Hot Springs, AR

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Beth Swanson

SEO Content Strategist

  • Licensed Insurance Agent — Property and Casualty

Beth joined The Zebra in 2022 as an Associate Content Strategist. She is a licensed insurance agent whose goal is to make insurance content easy to r…

Thanks for reaching out with your question! Unfortunately, you're not the only one who feels like your car insurance is more expensive than in the past. When your auto insurance premium rises, it doesn't always mean you've done something wrong, though. Let's talk about some potential reasons for the price hike you're seeing.

  • Location: When a certain geographical area of the country experiences higher losses than others, then insurers in those states typically have to increase rates to help offset the cost of paying out claims. For example, folks in Florida have experienced drastic increases due to the number of severe storms and hurricanes that have caused damages (and caused an increased number of claims).
  • Rating factors: There are quite a few different factors that insurance companies analyze when calculating their rates, including things like age, gender, credit history, and driving record. So, even though you have a great driving history, you may have celebrated a milestone birthday that could've increased your rates slightly. For instance, drivers in their teens, twenties, and seventies tend to pay higher rates than other age brackets. If your credit score has decreased, this could've come into play, as well.
  • Business costs: Although sometimes we think of our insurance company existing just to provide us peace of mind and financial assistance, they are also a business. This means they need to turn a profit, and that can be hard for companies to do as operating costs increase for them. Just as we see inflation in our lives, companies are paying more for their buildings, services, employees, and just about everything else, too. Combining increased overhead with paying out bigger and more frequent claims, insurance companies have to adjust to stay in business.

Often, a rate increase isn't personal at all. I'd suggest reaching out to your insurance company to ask about any discounts you may qualify for. There might be an option to save that you aren't aware of, so it doesn't hurt to ask! You can also adjust your deductible if that is something you're comfortable with.

We also recommend shopping around for new auto insurance quotes every six months or so, so if you've been with the same company a while it's a great time to check in to see about other options that may be more affordable. Give our agency a call at 888-255-4364 to have a knowledgeable professional help you out.

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