Secured with SHA-256 Encryption

Select Page

Why Did My Car Insurance Rate Go Up? No Accident or Ticket

Home » Why Did My Car Insurance Rate Go Up? No Accident or Ticket

FREE Car Insurance Comparison

Compare quotes from the top car insurance companies and save!

 Secured with SHA-256 Encryption

Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency...

Full Bio →

Reviewed byJoel Ohman
Founder, CFP®https://res.cloudinary.com/quotellc/image/upload/insurance-site-images/truthaboutins-live/2020/03/joel-ohman.jpg

UPDATED: Sep 9, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

The Truth in a Nutshell:

  • Most car insurance companies will lower your rates if you have no tickets for three years
  • Car insurance rates can go up for many reasons, like a change in address or if you buy a new car
  • You can lower rates by increasing your deductible, lowering your coverage, or shopping around

Why does my car insurance rate go up if nothing has changed? In fact, if you have no tickets in three years, your rates should not go up because of your driving history.

Sadly, it’s quite possible for your car insurance rates to go up with no ticket or involvement in an accident.

In short, car insurance rates are determined by “pooling” a large number of people with similar factors or characteristics. Once these pools are created, a rate is assigned to the group (basically an educated guess based on losses the insurance company had to pay in previous years).

The insurance company’s goal is to charge the group enough money to cover the costs of ALL the accidents they expect the group to have.

Whether or not the insurance company is correct won’t be determined until a few years after the policy term expires. Much of the delay can be attributed to the fact that many of the expenses for losses incurred by insurance companies are tied to court costs.

And as we all know, lawsuits often take a number of years to settle. That’s why insurance companies generally offer to settle insurance claims outside of court.

Cost is one of the hottest car insurance topics out there and affordable car insurance with no tickets or accidents is easy to find.

The best way to get great coverage at a cheap price is to shop around, no matter your driving record. Compare quotes for car insurance for people with tickets now by entering your ZIP.

Keep reading to learn why car insurance goes up and what you can do to keep your rates low.

Why Car Insurance Rates Go Up

Why does my auto insurance go up every year?

Though, as noted by Business Insider, it seems like car insurance rates are always on the rise, we actually have a lot of control over what we pay and whether or not that rate will increase over time. Many factors go into how car insurance rates are determined.

We determine our driving record, what car we drive, and any change in coverage or insurance deductible.

Some of the main rating factors auto insurers use to determine what to charge for car insurance include the MVR, C.L.U.E. report, vehicle history, and financial responsibility reports.

Each ticket you receive and every claim you file, as well as your overall financial health, will show up on these reports.

Do speeding tickets affect insurance with Geico? How much does insurance go up after a speeding ticket with State Farm? How much does insurance go up after a speeding ticket with Progressive?
How much will my USAA insurance go up with a speeding ticket? Regardless of your insurance company, a speeding ticket will probably affect your car insurance rates.

Let’s take a look at how much does insurance go up after a ticket or at-fault accident.

Average Annual Car Insurance Rates Based on Driving History
CompaniesAverage Annual Rates with a Clean RecordAverage Annual Rates with One AccidentAverage Annual Rates with One DUIAverage Annual Rates with One Speeding Violation
USAA$1,933.68$2,516.24$3,506.03$2,193.25
Geico$2,145.96$3,192.77$4,875.87$2,645.43
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
Get Your Rates Quote Now

So, just how much does your insurance go up for an accident? A clean record will cost you about $260 a month but an accident will increase your rates to an average of $340 a month, an increase of around $80 a month.

Of course, the best car insurance if you have speeding tickets is insurance that goes up the least. Comparing rates is a great way to find the best insurance companies for speeding tickets. On the other hand you should be able to buy car insurance with no tickets or accidents at an affordable rate.

Watch this video to learn more about how your driving record affects your car insurance rates.

Drive safely to keep your auto insurance rates as low as possible.

Car Insurance Companies Typically Look Back 3-5 Years

How do insurance companies find out about tickets?

It is most common for insurance companies to look at a five or three-year history to determine your rate, though this depends on the type of auto insurance company you choose. When you’re shopping around, look for car insurance companies that only look back three years.

The best way to avoid rate increases is to drive safely and keep financially fit.

Your policy cannot be canceled mid-term based on the information in these reports, but you can certainly expect to be non-renewed or charged more on your next policy term.

This type of rate increase is associated with liability-only car insurance.

The type of car you choose to drive may also increase your insurance rate. If you purchase a newer or more expensive vehicle, be sure to factor in an insurance rate increase into your budget.

We also tend to file more claims to repair newer or more expensive vehicles. More insurance claims always equal higher insurance rates. This type of increase is associated with physical damage coverage.

Also under our control is the amount of liability coverage we elect to receive; almost every state has mandatory minimum automobile insurance liability limits. But we have the option to increase that amount, which will certainly make your car insurance rate go up.

You also set the deductible for physical damage coverage; if you decrease your deductible, you can expect to pay more for your auto insurance.

Lower deductibles tend to correlate with more claims, as drivers pay less money out-of-pocket for repairs.

Keep in mind that you can always speak with your insurance company or get an online quote to ensure you aren’t being overcharged for your car insurance.

FREE Car Insurance Comparison

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption

Is It Time to Shop Around?

Why did my car insurance go up for no reason?

If you have not had an accident or received a ticket and your rates still rise, it may be time to shop around with a different insurance company.

If you happen to work with an independent insurance agent, call your agent and ask him or her to “shop” your rate with additional carriers, or attempt to find discounts your insurance company may have available for you or better car insurance rates with no tickets or accidents.

If you do not have an agent, but instead work with a direct insurance carrier, call your insurance company and ask for available discounts, or call other direct insurance carriers for a quote. Talking to your car insurance company if you have no tickets or accidents may help you save on your car insurance.

Insurance companies typically review your history for accidents and tickets on a three-year timeline.

It is always worth the time to call your insurance agent or direct insurance carrier to request accident forgiveness or ticket forgiveness. Typically it is more common to have a ticket forgiven rather than an accident.

For example, if you’re beginning a new insurance policy on September 1, 2019, and received a speeding ticket on November 15, 2016, it’s certainly worth requesting that the ticket be disregarded when determining your rate. Remember, it never hurts to ask!

Shop around to get the best deals on car insurance quotes with no tickets or accidents. Not every company will charge the same rates for the same coverage.

Enter your ZIP now to compare no-ticket quotes if you have no tickets in three years or quotes for a less than stellar driving history.

References:

  1. https://www.businessinsider.com/personal-finance/why-car-insurance-rates-rise-increase

FREE Car Insurance Comparison

Compare quotes from the top car insurance companies and save!

 Secured with SHA-256 Encryption