Why do car insurance rates go up?

There are many reasons why your car insurance rates might go up, but with Metromile, you have the power to lower your premiums if you don’t drive very often.

Are your car insurance rates going up?

When it’s time to renew your policy, your car insurance company might send you a letter to let you know your rates are increasing.

That might not be a surprise if you recently got into a car accident or received a speeding ticket. But what if you’ve never filed a claim before? 

Sometimes, even if you drive safely, your car insurance rates might rise for reasons that are out of your control.

Let’s take a look at a few reasons why your car insurance might be so high and how a pay-per-mile auto insurance policy from Metromile could help you save money.

What factors impact your car insurance rates? 

Car insurance companies consider a number of factors when setting your premiums.

It’s important to understand that your auto insurance rates could be based on things like:

With that in mind, let’s take a closer look at why your car insurance rates might be going up.

Why did my car insurance go up? 

There are several reasons why your car insurance rates might go up.

Sometimes your car insurance premiums increase as a direct result of your driving behavior. Other times, it could have nothing to do with you. Your rates could go up simply because of changes in the market.

Here are four common reasons why car insurance rates go up:

1. Your auto insurance rates might go up if your driving record changed. 

If your recent driving shows you might be a risky or dangerous driver, your car insurance premium can increase at renewal.

For example, if you were determined to be at fault in a car accident, you’ll almost certainly notice an increase in your premiums. If you got caught speeding or running a red light, paying the ticket might be the least of your worries. 

Plus, you might lose any safe driver discounts you used to have, which could increase your rates even more. It’s a double whammy and more reason for you to drive safely.

2. Your auto insurance rates could rise for reasons that have nothing to do with driving.

For example, if your credit goes down, your car insurance premiums might increase. 

Even though it has nothing to do with your driving habits, a sharp drop in your credit score could be an indication of risky behavior that insurers fear could carry over to the streets or a greater likelihood of filing a claim.

3. Your auto insurance rates could also go up if you added insurance. 

This could be as simple as buying a new car that’s more expensive to replace, adding a new driver to your policy, especially if it’s a teenage driver, or increasing your coverage amounts. This doesn’t mean you’ve done anything wrong. 

But because the insurance company is taking on more risk or providing more coverage, they could raise your premiums.

4. Your auto insurance rates could also increase for reasons that are beyond your control. 

If you move from a quiet town to a big city, where car accidents and stolen vehicles are more common, your car insurance company might raise your rates to make up for the additional risk.

As car repairs or health care costs go up, they could also increase your premiums because it can become more expensive to pay for any vehicle damages or injuries you might cause in an accident. 

Lastly, don’t forget car insurance companies also have to factor in inflation.

What auto insurance discounts are available? 

Your car insurance company might offer various discounts.

If your car insurance rates are going up because of your driving record, you’ll probably have a difficult time finding another insurance company that will give you a better price. But if they’re increasing your rates for other reasons, you might be able to save money by shopping around for a more affordable car insurance policy that offers better discounts.

Here are some common car insurance discounts that you should make sure to ask for:

  • Safe driver discount or a no-accident discount
  • Good driver discount
  • Mature driver discount
  • Safety equipment installation discount for anti-theft equipment or car alarms, for example
  • Multi-vehicle discount

At Metromile, you could also score a discount of up to an additional 40% off your initial quote in select states by taking a Ride Along™ and demonstrating safe driving. 

What is Ride Along™, and how does it work? 

Ride Along™ is like a free trial that lets you test out Metromile without needing to commit.

All you have to do is download the Metromile app for free. Then, you’ll just drive as you would ordinarily for 17 days. We’ll take it from there and count how many miles you drive, so we can estimate how much you’d pay on a regular basis with pay-per-mile auto insurance.

While we’re at it, we might also consider your driving behavior, like whether you speed or how hard you brake. If you demonstrate you’re a safe driver during this trial period, you might qualify for an additional discount of 15% if you live in Arizona or 40% if you live in Oregon.

Then, you can switch to Metromile and start your coverage. (You won’t be covered by Metromile during your Ride Along.)

How else can I save money on car insurance with Metromile? 

Metromile offers pay-as-you-drive auto insurance.

Instead of charging you a flat rate for car insurance, we start you off with a small base rate and then charge you by the mile after that. 

While your rates may still be determined by things like your driving record, what type of car you have, and where you live, the price you pay is based on how many miles you drive. So if you’re a low-mileage driver, think about how much money you could save on auto insurance!

Miles Driven Per YearPer MonthPer WeekSavings*
10,000 miles833 miles192 miles$541
6,000 miles500 miles115 miles$741
2,500 miles208 miles48 miles$947
*Average annual car insurance savings by new customers surveyed who saved with Metromile in 2018.

What’s next?

Still wondering why your car insurance rates are so high?

If your car insurance rates recently went up, you might be looking for ways to save money. While other auto insurers give you little choice over how much you pay, Metromile puts you in the driver’s seat. We provide you with control over how much you pay each month based on how many miles you drive.

The less you drive, the more you save. 

Think you might be a low-mileage driver? Get a free auto insurance quote from Metromile today to see how much you could save.