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Ava Lynch

Senior Analyst

  • Licensed Insurance Agent — Property and Casualty

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one…

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Renata Balasco

Content Strategist

  • Licensed Insurance Agent — Property and Casualty

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

Why do car insurance rates increase?

Car insurance premiums have a nasty habit of rising each year — regardless of whether you've filed any claims. Why is that? Car insurance companies compensate for the money they pay out in claims per year through rate revisions. If an insurance company's claim payout total exceeded its premium revenue, it will often pass on those costs to customers the following year. On average, car insurance premiums increased by 15% between 2021 and 2022 — the most significant increase in recent history.

Let’s review the reasons behind car insurance rate increases.



Why did my car insurance go up without an accident or ticket?

You can expect your car insurance premium to increase if you've committed any traffic violationsadded drivers to your policy, moved, changed or upgraded insurance coverage, or added a vehicle. If none of these events have occurred and you haven't filed an insurance claim, you could be wondering what sparked your higher premiums. In such a case, you could be the victim of a rate increase. In order to fully understand insurance rate increases, it’s important to know how insurance companies set your home or auto insurance premium. Most of the information used by car insurance companies is historical data used to predict what their future losses — or claim payments — could be.

Auto insurers don’t use only your information to create your profile. They also rely on related data, including your locationvehicleagecredit score, and other factors to create a pricing profile. If you live in an area in which insurers experienced a higher loss-to-profit ratio than usual last year, you might experience a rate increase to account for the insurance company’s loss.

Common car insurance rate increase triggers include:

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Key insights

Although it might seem unfair to suffer a rate increase without any moving violations, it's an unavoidable byproduct of how the auto insurance industry operates. Insurance companies need to maintain return-on-investment and minimize risk in order to stay viable. If they had to pay a greater number of claims than expected, they'll need to compensate for that with higher rates.

Other economic reasons for rate increases in car insurance:

  • Inflation is the most significant cause of premium increases in 2023. This has also made an impact on the costs of new and used cars and healthcare. Because car insurance covers much of these expenses after an accident, upticks in the price of cars and healthcare mean higher rates.
  • Another factor is that the cost of doing business has also been increasing: economic trends of supply chain disruptions and labor shortages have driven up operating costs for insurance companies.
  • After much of 2020 saw drastic reductions in driving habits, leading to fewer claims, a rebounding to pre-pandemic driving patterns has led to surges in claims and accidents.

Auto insurance trends: how much will car insurance cost next year?

While we can’t predict the future, we can use historical data to inform our predictions. Over the past decade, car insurance prices have risen significantly. The table below shows average annual car insurance costs and percent changes from the previous year.

Year Average Annual Premium % Change YoY
2012 $1,276 -
2013 $1,195 -6.3%
2014 $1,229 +2.8%
2015 $1,280 +4.1%
2016 $1,368 +6.8%
2017 $1,437 +5%
2018 $1,521 +5.8%
2019 $1,544 +1.5%
2020 $1,483 -3.9%
2021 $1,529 +3.1%
2022 $1,759 +15%

Because car insurance is regulated at the state level and rated on a ZIP-by-ZIP basis, it's highly unique. Get a quote or continue reading below to see a state-by-state breakdown.

Save an average of $440 a year by comparing your options.

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Average auto insurance rate increases by state

At the state level, the past years have brought significant insurance cost changes — in some states, as much as over 40%.

Which car insurance companies have increased rates recently?

While it’s nearly impossible to track down specific rate changes for every insurance company, most major insurers factor rate increases into their premium calculations. Since rate increases aren't consistent across the industry, it's important to find the company that will increase your rates the least. The only real way to do this is to shop around for an insurance policy with the cheapest rates. Remember, the rate increase is dependent on the previous year’s return-on-investment — you'll need to consistently gather insurance quotes every six months to ensure the cost of your car insurance premium doesn't go up.

Make an informed decision: compare insurance rates today.

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Why did my car insurance go up when I moved to a safer area?

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How can I get a not at fault accident charged off my driving record?

If your insurance company has to pay out on a claim, it will impact your rates. If you have uninsured motorist coverage, the accident will only stay on your record for 3 years and will not impact your rates as much as if you don't. If you don't have uninsured coverage, but do have collisi…
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If someone keyed my car and I file a claim, will that make my insurance go up?

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.