Why Did My Car Insurance Go Up Even without an Accident?

Although accidents are generally the leading cause of an increase in auto insurance rates, other factors play an intricate role, such as where you reside and current trends. While some aspects are out of your control, there are steps you can take to avoid or manage the higher expenses. Continue reading and learn how your car insurance costs can increase without being in an accident.

Rise in Purchasing Costs

Higher vehicle costs lead to more expensive automotive labor, parts, repair materials, and storage. As a result, premium rates can increase to cover the surges in new or used vehicle prices.

Even if you’re not in an accident, your car could experience damage, such as scratches caused by animals or broken windows due to a tree falling on your vehicle. Even if you keep your automobile in the garage or another secure area, inactivity could cause parts to stop working. Claims involving repair and replacement costs need to be settled, which could lead to higher premiums for vehicle owners.

Inflation

Inflation can disrupt the costs of vehicles, repairs, medical injuries, labor shortages, and other factors, leading to higher auto insurance rates. Companies add these expenses into their premiums to cover costs for their customers, team members, and other businesses while still earning a profit.

Auto insurance rates are typically controlled by state and local regulations. Therefore, inflation can cause loss trends and current cost projections that lead to rising rates for insurers and the insured. Both federal and state regulators will dictate if the rise is appropriate or deny increases if their officials deem the costs exploitive and excessive for consumers.

Rising Claims within Your Area

Even if you have the best driving record and have remained a loyal customer, an insurance provider must consider local claims within your area. The company uses these records to determine how risky it is when you take your vehicle on the road and price your coverage appropriately. When shopping for auto insurance, Chula Vista drivers should take this into account.

The higher rates can also be due to other community issues besides accidents, such as theft, increased moving rates, vandalism, weather-related damage, and fires. Auto insurance companies consider these factors yearly, and while you may not experience the issue now, you could later. Therefore, increasing your current rate protects the vehicle, you, and your provider.

Policy Renewals & Changes

During renewal periods, your provider could implement policy changes that impact your coverage rates. The increase could be due to your claims history, current driving record, changes in your credit score, and recent industry trends. Learn about renewal changes ahead of time so you can compare quotes from different providers.

Adding additional drivers to your current plan could also increase your rates. Therefore, it’s always best to speak with your insurance company before committing. A representative can go over all changes, allowing you to shop around for discounts and bundles without compromising your vehicle protection. 

If you need reliable and affordable car insurance, reach out to Altra Insurance Services. We also offer top-quality motorcycle insurance. To receive a complimentary quote, get in touch with one of our friendly agents.