Reasons Why Your Car Insurance Rates Changed

Learn what factors caused your auto insurance rates to change.

Did you notice that your insurance premiums changed when you reviewed your auto policy?  While some rate changes are the result of an accident or a claim, there are other factors that could contribute to your rate changes.  Here are some of the things that could have caused your rates to fluctuate.


It’s important to keep in mind that auto insurers calculate their clients’ premiums annually.  Their calculations are based on what they expect your claims to cost for that year.  This is why your rates tend to increase following an accident or claim.  But these aren’t the only factors that contribute to rate increases.  For instance, personal changes can affect your rates.  Some of these changes include:

  • Your Car – Different makes and models require different repair costs.
  • Your Coverage – Any changes that you make in regards to your auto coverage will affect your rates.
  • Your Life – Major life changes such as getting married, moving, and even your birthday can also influence your insurance premiums.

In addition to these personal changes, your rates might also be affected by factors that are outside your control.  For instance:

  • Gas Prices – When gas prices are low, people tend to drive more, which also increases their chances of getting into an accident.
  • New Cars – Newer cars will require more expensive repairs. With newer cars on the road, the cost of a potential accident increases.
  • Medical Costs – With the cost of medical care rising, your premiums have to increase as well to ensure that you are getting the coverage you need in case you are injured in an accident.

If your auto insurance premiums increased this year, these are some of the possible reasons why.  Still have questions regarding your auto coverage?  Don’t hesitate to contact the team at Pierce Insurance Group.  Our dedicated professionals are ready to assist you with all your coverage needs.