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The reasons your car insurance goes up

Updated: Nov 19, 2019

For good drivers, there is nothing more frustrating than getting a car insurance renewal and seeing the price go up when you have not had any claims. The first question that comes to mind is:

"Why did my car insurance go up? I had no claims and my car is only one year older!"

There are two sets of factors that can make the price of your car insurance increase. Knowing what could make your car insurance go up in price when you haven't had any claims can help you save money. When you understand the factors, then you are in a better position to negotiate the price and find an insurance company that will give you the lowest cost. You may also want to read our article on the top cheapest cars to insure if you are planning on buying a new car and wonder what the average cost of car insurance will be.

10 Things That Can Make the Cost of Your Car Insurance Renewal Go Up

1. Your claims history and driving record.

2. History of convictions or driving violations causing surcharges.

3. Change of address, placing you in a new area that may be more expensive regarding insurance.

4. New drivers added to the policy or changes of the primary drivers of various vehicles on the policy.

5. Cancellation of home policy, or other policy causing you to lose the discount for having more than one policy with the same insurer.

6. The removal of a vehicle from the policy. Sometimes you get discounts for insuring more than one car. If you remove your second car, the price of insurance on the first car might go up.

7. Change of employment. You may lose a group discount, a professional discount, or possibly have the distance to work change, making your rate go up.

8. Medical conditions that increase your risk, or restrictions that cause reclassification to high-risk insurance due to convictions like drunken driving charges.

9. Mistakes. Yes, insurance companies can sometimes make mistakes. Never assume that the rate you got is the best rate or that it is necessarily correct. There are computer and human errors that can occur, so it is always worth reviewing the factors with your representative when you're in doubt.

10. Changes to the payment plan fees or structure on your insurance plan. Sometimes insurance companies change the financing rates or add new service charges that you may not have noticed. Take a look at your payment options and make sure you choose one that best meets your needs. Some companies offer zero financing, and others can charge up to 5% or more. This can impact your actual annual insurance cost.

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