There are two main reasons why your insurance premium might keep going up: factors related to you and factors outside your control.

Factors you can influence:

  • Driving record: Traffic violations, accidents (even not-at-fault ones), and DUIs will all increase your risk profile and lead to higher premiums.
  • Changes in your car: Upgrading to a more expensive or sporty car, or one with a higher theft rate, will result in a higher premium.
  • Coverage changes: Adding comprehensive or collision coverage to your policy will obviously cost more than just liability insurance.
  • Mileage: If you drive more than the estimated mileage on your policy, your premium might increase at renewal.

Factors outside your control:

  • Rising repair costs: The cost to repair or replace vehicles has been rising steadily. This means insurance companies have to pay out more when there are claims, so they raise premiums to cover their expenses.
  • Increased claim severity: Medical costs and legal settlements tend to go up over time, which can lead to higher premiums for health insurance.
  • Location: Living in an area with a high rate of accidents, theft, or vandalism will result in a higher premium.
  • Social inflation: This refers to a trend of increasing jury awards and litigation costs, which can drive up insurance costs for everyone.

Here are some things you can do to try to keep your premiums down:

  • Shop around for insurance every renewal period.
  • Maintain a clean driving record.
  • Take advantage of discounts offered by insurance companies, such as good driver discounts, low mileage discounts, or bundling your home and auto insurance.
  • Consider raising your deductible to lower your premium. Just be sure you can afford to cover the deductible if you need to file a claim.
  • Review your coverage regularly to make sure you’re not paying for extras you don’t need.

Even though you can’t control everything that affects your insurance premium, by following these tips, you can help keep your costs down.

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