What Makes Insurance Rates Rise?

Causing a car accident, speeding tickets, or adding a teenage driver to your insurance will make the premiums rise. But here are some other, lesser known causes for your insurance rates going up.

Most people know that causing a car accident, getting a couple speeding tickets, or adding a teenage driver to your insurance will make the premiums rise. But whether you have auto insurance in Edmonton or Miami, here are some other, lesser known causes for your insurance rates going up.


Your credit shows how well you pay your bills. A low credit score indicates that you’re not good with money or just less reliable, and might neglect paying for your insurance. The insurance company is taking a risk insuring you, and because of that risk, they will charge more.  It is possible that your insurance does not look at credit scores when setting premiums, but if you are worried about it ask your insurance agent.


If your new car is newer, or worth more, it will certainly cause you to pay more for insurance. The newer cars will cost more to repair or replace than an old car will. At the same time, the type of car also makes a difference. A minivan will be less to insure than a high-performance sports car.


Have you changed jobs? If your job requires more driving, it also increases your risk for an accident, as well as causes more wear and tear on your car. The more you drive, the more likely you are to get into an accident, so it may be worth it to move closer to work than it is to commute.


If someone else wrecks your car, you’re good right? Well, maybe not. If your friend offers to pay for the damage, then you’re good, but if your friend can’t or won’t pay, then you’re in trouble. You’ll have to file a claim, and filing a claim will make your premium rise. It might be unfair, but that’s the way it goes. However, if you did not give your friend permission to drive your car there is a good chance you will not be found liable. But if the wreck involved another vehicle and neither yours nor your friend’s policy can cover the costs, the third party in the wreck can approach you for medical and property damages. In other words, be careful who drives your car.


Once you have that magical 50th birthday, you are considered an “older” driver who is more prone to accidents. This seems unfair since, statistically, the safest drivers are between ages 64 and 69, but that’s the way it works in the insurance world. Ages 85 and above have the most accidents than any other age group.


Sorry singles, your rates will probably be higher than your married friend’s rates. Studies show that married people are less likely to get into a car accident, and if they do have one, it causes less damage than one a single person would be involved in. That means that singles are considered more “at risk” and the premiums will go up.


If you’ve moved recently your rates will change. It all depends on the neighborhood you move into and if it is less safe than your old one.  It will also change if your commute is longer, or if you do more driving. Even if you go to a place that doesn’t have a garage any longer, that will change your rates.  


If you get rid of your insurance for a time, even for only 30 days, it will make rates rise when you get insured once again.


If you have a brush with the law, expect to watch those rates jump! Speeding tickets, DUI’s, and other violations show your insurance company that you are a risky driver and far more likely to be in an accident.



Insurance rates are definitely up to change depending on many different factors, and each company, from Wells Fargo to Dyck insurance, calculate rates differently. Knowing what factors will make your rates go up will put you in a better position to avoid those factors, and keep premiums low and affordable.

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