The Top Reasons for Rate Increases to Your Auto Insurance

By: Woop Blog Group
Updated
Friday, October 28, 2022
Why did my insurance increase The Top Reasons for Rate Increases to Your Auto Insurance

The Big Picture:

Everything is up! We’re in a period of inflation, and our economy is recovering from massive labor and material shortages, due to a global pandemic. The trickle-down effects have caused rate increases for auto insurance too. Here are the key reasons:

  • After the vaccine, drivers returned to the roads, which inevitably led to a spike in accidents, driving rate increases for auto insurance!
  • Parts, labor, and supply chain shortages greatly increased the cost of new cars, which made them more costly to replace, driving rate increases for auto insurance!
  • The higher cost of new cars, led to a surge in the purchase of used cars, which are also more costly to ensure as the cost of replacement parts and repairs has risen as well, driving rate increases for auto insurance!
  • Healthcare costs skyrocketed during the pandemic, due the relentless demand on the industry. This made the cost to cover health-related effects from crashes and injuries more expensive, driving rate increases for auto insurance!

The Smaller Picture:

This is all about you as the consumer. You may not realize it, but insurance companies create an in-depth profile of you to calculate the cost to insure you, based on a number of factors. The following list are all possible things that can cause rate increases for auto insurance:

  • Your driving record (if you’ve had any accidents or driving offenses) can cause rate increases for auto insurance.
  • The type of car itself – some cars are simply more expensive to insure/replace than others or are less safe than others - can cause rate increases for auto insurance.
  • The amount you drive your car can cause rate increases for auto insurance.
  • Where you live and how safe the neighborhood is, along with where you park your car for work, can cause rate increases for auto insurance.
  • Your age and your years of driving experience can also affect your insurance costs. A teen driver in the house can often skyrocket rate increases for auto insurance.
  • Other drivers in your household and their driving records can cause rate increases for auto insurance.
  • Your credit history actually has a large effect on your rates. Poor credit history can even double rate increases for auto insurance
  • On average, a married driver pays $149 less per year for car insurance than does a single driver, so your marital status can cause rate increases for auto insurance.
  • Believe it or not, on average, men actually pay slightly less for insurance. Therefore, even your gender can cause rate increases for auto insurance.
  • The type of coverage you choose can also be a factor in why your insurance costs are increasing. Some types of coverage (collision or comprehensive for example) will cause rate increases for auto insurance.
  • Limits and deductibles can also be a factor in your overall insurance premium costs. Oftentimes adjusting these can cause rate increases for auto insurance.

At Woop we will not only inform you on what factors are causing rate increases for your auto insurance, but we’ll also provide you with information on the best rates and coverage available to you, along a full consumer report about the insurance companies calculated your own personal insurance rates. All of this is free of charge visit us here.