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5 reasons your car insurance rate changes

While it can seem arbitrary, there are actual reasons you can see your price go up and down.

Woman with her car about to go for a run

1. Driving record
Ask yourself honestly, are you an at-risk driver? Incidents such as accidents (even if you weren't at fault), speeding violations, reckless driving, and driving while intoxicated can all cause your premiums to spike. If you've filed a claim in the past few years, this might also result in an increase to your premium. You’ve heard it before but do your best to remain on your guard and maintain good driving habits. As time goes on, past claims on your record will decrease if you keep losses to a minimum.

2. Credit score
Oh, credit score. What don’t you impact? Your personal insurance score, which is based partially on your credit score, is used in combination with other risk factors to help determine your home and auto rates. This practice lets insurance companies cover more people and promotes equitable rates for all customers

3. How much you drive
It's pretty simple: the more you drive, the more opportunity there is to get in an accident. Let your insurance company know if your lifestyle changes and you're driving less, because you may be eligible for lower rates.

4. The car you drive
Generally, a new car costs more to repair after an accident. New cars are also at a higher risk of break-ins or theft. So, if you're thinking about buying that dream car you've always wanted, talk to your insurance company about how your rates will be affected. Keep in mind luxury cars aren't the only ones that are at a high-risk of theft. Thieves also target cars with high-demand parts.

5. Adding a driver to your policy
All the factors above as they pertain to an additional driver on your policy can ultimately impact your rate. As you might guess, adding a teenage driver can generally bump up your rate due to the high-risk associated with new drivers.

Worried about insuring your teen driver? If they have a GPA of a B or better, they may qualify for our Good Student Discount. Start your quote today to learn more.

*ByMile is only available in certain states

What you can do about it

  • Do your best to drive safe. Better yet, get rewarded for your good driving with RightTrack®
  • Check for auto discounts
  • If you don’t drive often, only pay for what you need with *ByMile™

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