When Will My Car Insurance Rates Go Down

Another reason car insurance can go up for no apparent reason is when the named insured has had a change in their credit. Insurance scores are used by many carriers to rate policies. This is a number derived from the insured’s credit, and which is allegedly predictive of how risky a driver (or homeowner) is.

Most Common Reasons Your Car Insurance Rates Went up. Accident Claims, Tickets and Other Citations. These are obvious causes for your rates going up. If you’re involved in an accident, at fault or not, your insurance company will raise your rates.

One apparent reason that insurance rates go up is inflation. As the costs associated with claims increase due to inflation—costs for medical expenses and vehicle repairs, for example—companies adjust their rates to cover these higher expenses. In addition to inflation, other drivers can impact your rates.

Requiring car insurance helps states protect drivers from the enormous costs that can be associated with an accident. It ensures that both: The at-fault driver can cover the costs of the injuries or property damages resulting from the accident without losing huge sums in a lawsuit.