Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 20, 2020

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Key takeaways...

  • Insurance is recalculated at every renewal period
  • If you have been involved in an accident, insurance rates might go up
  • Insurance companies calculate their own risk on a regular basis
  • If insurance laws change, it often causes an increase in premiums across all insurance companies

You need car insurance when you’re on the road. The premiums you pay are re-calculated at the end of every renewal period.

Car insurance might increase every year. There are many reasons why it increases, though there are things that you can do about it.

One of the best ways to find a way to pay less is to compare quotes and find the company that offers the coverage you want at the best rate. Enter your zip code into our free comparison tool above to get started.

Overall Risk


The overall risk of being insured might have increased from one year to the next. Insurance companies are going to look at all of your information to determine if it’s in their best interest to continue insuring you at the rate that they have been.

If anything changes to increase risk, they will increase the cost of insurance.

  • Accidents – If you have been involved in an accident, it’s going to increase your premium. Your insurance company had to spend money on the claim that was filed. As a way to compensate for their expense, you have to pay more to have an insurance policy with them.
  • Traffic violations – If you have received any kind of ticket for a traffic violation, such as speeding or reckless driving, you have identified that you are a higher risk on the road.
  • New Car – A new car could increase your premium, too. Even though it might have more safety features, it’s also worth more. Insurance companies might have to pay for repairs or a total replacement, so they will look at the value of the car you’re driving.
  • Medical condition – If you have been diagnosed with any kind of medical condition that could affect your driving, your premiums might go up. Diabetes, epilepsy, narcolepsy, and other conditions might be reported to the DMV by your doctor. Your insurance company will then adjust your premium accordingly.
  • Age – As you get older, your risk increases. According to the CDC, approximately 648 senior drivers are injured in accidents every year. Once you reach the age of 65 and beyond, insurance will see you as a greater risk on the roads.

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Legislative Changes

Legislature changes across the United States periodically. In many instances, it is controlled on the state level. The insurance commission might make a request, and then the state Senate will approve or deny the request.

When changes occur, the car insurance typically goes up because of what the state requires of insurance companies. The changes occur across the board.

No one insurance company is responsible for the increases. It is because of what they are required to do based on the state.

If you notice an increase from year to year, it’s a good idea to explore what’s been going on with state laws. Find out if there has been a legislative change that led to a rise in insurance premiums.

It will make it easier to understand why your insurance went up, even if you have been accident-free.

Changes inside the Insurance Company


Sometimes, there are changes inside of an insurance company. Individuals known as actuaries work to calculate the risk of an insurance company. They will use a wide array of statistics. The number of claims, how much was paid out on claims and more will be calculated.

If an insurance company had a particularly hard year where more of their customers had insurance claims, they might have to increase the premiums for everyone.

Although it doesn’t seem fair because you were not responsible for any of the claims, it is what happens.

Insurance companies might not identify that it is because of other claims that they are raising your premiums. They might talk about inflation and other aspects. It is then up to you to continue getting your policy from them or to work with another insurance company.

Control Your Insurance Costs

If you have the same car and have had no accidents in the past year, it might seem unfair that your car insurance premium is going up. You have some control over what you pay. Various factors are used to calculate insurance, including

You can’t do anything about some of the factors. However, can control your driving history, the car you drive, and even where you choose to live. Further, insurance companies vary in terms of how they calculate the factors and what their base rates are.

By getting quotes from multiple insurance companies, you can compare rates and find the most affordable coverage.

It is normal for insurance to go up from year to year because there are so many factors that go into the premiums. Most of the time, the increase is not substantial.

If you find that your increase is a considerable amount, remember that you can get quotes from other insurance companies and make a switch at any time. Get quotes today by using our free rate comparison tool below.