Why Did My Car Insurance Go Up Without an Accident

Your car insurance could go up without an accident for various reasons. While the insurance company’s reason for increasing your insurance may be justified, we’ve seen and handled cases where these companies think they’re above the law. If that’s what you’re dealing with, contact us today for a free, no-obligation case evaluation. We might be able to hold these companies accountable. 

That said, here are some common reasons car insurance might increase even without an accident.

Increased Risk Factors in Your Area

The insurance company may decide to increase your premiums if there are major changes in the risk factors associated with your area. Take, for example, a situation where there has been a surge in:

• car thefts;
• break-ins
• traffic accidents;
• and auto insurance claims in general.

In that case, the insurance provider might see it as a riskier area to insure. To avoid making losses while paying out claims, the company might decide to increase your premiums even if you have a clean driving record.

Additional Factors Affecting Car Insurance Rates

You don’t need to be in a vehicle accident to see your car insurance rates periodically increase. Some other factors affecting insurance premiums include,

Speeding Tickets and Moving Violations

Violations on your motor vehicle report, especially a DUI or multiple speeding tickets, are an indication to your insurance company that you're more likely to have an accident than a driver with no violations. The more violations you have, the higher your risk of filing a claim. Even a minor moving violation ticket could increase your car insurance rate. The good news is that insurance companies often don't increase your rate due to a non-moving violation like a parking ticket.

Adding Vehicles and Drivers

If you purchase a more expensive car, your rate is likely to go up, as your new ride may be more likely to be stolen. Repair or replacement costs are also higher than your previous vehicle. Adding a new driver to your existing policy could also drive up your price, especially adding teen drivers or someone with a poor driving record.

Loss of discounts

If you no longer qualify for discounts, your auto rate will likely increase. For example, if you had a discount for not being involved in an accident for the past three years, you'll no longer qualify for that discount after getting in an accident. Other common discounts you could lose if your situation changes include ones for being a homeowner, going paperless, and bundling home and auto policies.

Contact Morgan & Morgan If You’re Involved in a Vehicle Accident

If you’re involved in a vehicle accident, your insurance rates will probably go up. While a personal injury attorney can’t help with this, they can ensure you receive fair compensation for your auto accident. Contact Morgan & Morgan for a free, no-obligation case evaluation.

Rising Costs of Repairs and Medical Care

The cost of vehicle repairs and medical care is continually rising throughout the United States. As these costs go up, insurance companies may also adjust their rates to ensure they can cover the expenses of future claims.

Changes in Your Credit Score

Your credit score could determine how much you should pay for car insurance. These companies use credit scores to help determine risk and set insurance rates. For this reason, the company could interpret a decrease in your credit score as an indicator of potential financial instability. Given that financial instability tends to correlate with higher claims rates, the insurance provider might decide to increase your rates to prepare for potential claims you might file in the future.

Regulatory Changes

Insurance rates can also be affected by changes in state regulations or the introduction of new laws related to car insurance. If new regulations require higher levels of coverage or if insurers are mandated to offer certain types of benefits that they previously did not, your premiums might increase to cover these new legal requirements.

Can I Sue My Car Insurance Company?

Yes, you may be able to file a lawsuit against your insurance provider, especially if they act out of bad faith. What this means is that the insurance company has evaded its responsibility to its clients through any of the following:

• Deception
• Unfair claims denials
• Underpaying claims
• Intentionally delaying the claims process

Contact Car Insurance Claims Experts

If you believe that your insurance provider is acting out of bad faith, you may have a case against them. At Morgan and Morgan, we have more than 35 years of experience dealing with insurance companies all over America, big and small. Contact us today to have your case reviewed by a bad faith insurance expert from our team. We might be able to fight for you.