You open your renewal notice and see a higher price. Your first thought might be, “But I haven’t had any accidents or tickets!”
It’s a fair question. A clean driving record helps, but several other factors can affect what you pay for auto insurance.
Repairs can cost more
Your premium—the amount you pay for insurance—reflects the expected cost of future claims. When parts, labor, and vehicle replacement costs rise, insurance companies may adjust their rates. Modern vehicles can also have cameras and sensors that make repairs more expensive.
Claims affect more than one driver
Insurance spreads the cost of covered losses across a group of policyholders. More frequent or more expensive claims within that group can affect rates, even if you haven’t filed a claim yourself.
Keeping a clean record still matters, but it is only part of the pricing picture.
Your household or driving habits may have changed
Adding a newly licensed driver, replacing a vehicle, moving, or driving more miles can change your premium. Tickets, at-fault accidents, and changes to your coverage limits or deductibles may also affect the price.
Each insurance company weighs these factors differently.
Discounts deserve a second look
Ask whether all eligible discounts still apply. Bundling policies, insuring multiple vehicles, or qualifying for a good student discount may help, depending on the company. A change in eligibility can affect your renewal price.
What can you do?
Before making changes, ask your agent to compare your renewal with your previous policy and explain what changed. Then review these options:
- Confirm your information. Check your drivers, vehicles, address, and mileage.
- Ask about discounts. Review which savings opportunities are available.
- Review your deductibles. A higher deductible may lower your premium, but it means paying more yourself after a covered loss.
- Compare similar coverage. Quotes should use similar coverages, limits, deductibles, and policy terms.
A lower price should still leave you with coverage that fits your needs. Talk through any trade-offs before reducing protection.
Let’s review your renewal together
At Sellman Insurance, we’re happy to help you understand your renewal and review the options available through our office. If your auto insurance has gone up, contact us so we can take a closer look together.
Discounts, rates, and coverage options vary by company and policy.