Auto Insurance Rates Going Up: Is it normal for auto insurance to go up every year?

Why are my auto insurance rates going up? Your car insurance could go up every year due to personal factors, inflation, and more. Read more below on how to prevent your rates from rising too much.

Free Auto Insurance Comparison

secured lock Secured with SHA-256 Encryption

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Full Bio →

Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 25, 2022

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 auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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

Things to remember...

  • It’s possible for car insurance rates to increase at any point throughout the calendar year
  • Insurance rates increase based on your driving record and other personal factors
  • If your rates go up, compare quotes from other companies to save

There are many factors that impact insurance rates. Downgrades to your credit rating, points against your driving record, or change of locations can cause your rates to increase. So, it’s normal for auto insurance to go up every year. 

However, your rates could increase as much as $50 per month or more with some insurance companies. If you get your renewal and aren’t happy with the price increase, it’s time to shop around.

Should my car insurance go up every year?

Though you need to renew your car insurance each year or even every six months, your rates may not stay the same, even if you stay with the same insurance company. There are plenty of factors that impact increases, but there is also a limit as to how much an insurance company can increase your rates. 

Each state dictates what kind of increases are allowed. However, a clause in your policy may also state a maximum allowable increase for car insurance rates.

Shopping for cheap auto insurance can save you a lot of money, but your rates are never guaranteed. It can be frustrating to see your auto insurance rates going up every year. However, auto insurance rates are controlled by many different factors, some of which you have control over.

A majority of the things that will make your insurance rates go up can’t be helped. However, you should know what you do have control over when it comes to your costs for car insurance.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

secured lock Secured with SHA-256 Encryption

Why are my auto insurance rates going up?

Regardless of what insurance company you use, your rates could increase simply due to the company’s operating costs. This is often one of the most significant factors regarding price changes. 

As more insurance policies are issued, there is a greater likelihood of an increase in filed claims. This increases both the risk and workload of the insurer, and your company adjusts premium rates to keep up with business and continue paying out legitimate claims. If the economy isn’t doing well, it can also impact car insurance rates, as the company must be able to adjust to any negative repercussions in the market.

Other factors include the number of uninsured motorists on the roads and the standard speed limits for your location. For example, higher speed limits increase the risk of accidents, leading to greater liability for the insurance company.

Fortunately, there are things that you can do to help keep your rates from significant increases. You can maintain low rates by shopping for discounts from the best auto insurance companies and watching your credit report or driver record.

Driver Age

Higher costs are associated with teenage and young adult drivers, given the lack of experience and maturity behind the wheel. As a result, there is a greater possibility of accidents and claims for these age groups. 

Gender and marital status also impact rates, and the following table shows how these factors influence auto insurance rates with several companies.

Average Annual Auto Insurance Rates by Age and Gender

CompaniesMarried 60-Year-Old Female RatesMarried 60-Year-Old Male RatesMarried 35-Year-Old Female RatesMarried 35-Year-Old Male RatesSingle 25-Year-Old Female RatesSingle 25-Year-Old Male RatesSingle 17-Year-Old Female RatesSingle 17-Year-Old Male Rates
State Farm$1,873.89$1,873.89$2,081.72$2,081.72$2,335.96$2,554.56$5,953.88$7,324.34
American Family$1,992.92$2,014.38$2,202.70$2,224.31$2,288.65$2,694.72$5,996.50$8,130.50
Liberty Mutual$3,445.00$3,680.53$3,802.77$3,856.84$3,959.67$4,503.13$11,621.01$13,718.69
Get Your Rates Quote Now

Compare RatesStart Now →

Vehicle Age and Model

If you purchase a new car, you could see a noticeable increase in your auto insurance rates. This is because new cars are generally more expensive to replace if totaled in an accident, and parts for new cars also tend to be more costly. 

Though cars with certain safety features can help lower your insurance rates, models associated with greater risks (such as sports cars) will see higher rates.

Location and Storage

Where you live will also impact your auto insurance rates, so a move may increase them. For example, if you live in a busy town and park the car on the street or in public parking, there is a greater risk of vandalism or theft that may increase your rates.

Driving Record and Credit History

Your driving record is just one factor included with your personal history, and your credit rating is another. Your credit history provides insurance companies a snapshot of your responsibility and maturity, potentially indicating what financial risk the company takes on when issuing a policy. A drop in your credit score will have a negative impact on your auto insurance rates. 

Accidents or violations on your driving record will also cause your auto insurance rates to go up. Here are the average auto insurance rates by driving record to give you an idea of how much you could pay:

Average Annual Auto Insurance Rates by Driving Record
Insurance CompaniesAverage Annual Auto Insurance Rates with a Clean RecordAverage Annual Auto Insurance Rates with 1 AccidentAverage Annual Auto Insurance Rates with 1 DUIAverage Annual Auto Insurance Rates with 1 Speeding Violation
American Family$2,693.61$3,722.75$4,330.24$3,025.74
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
Get Your Rates Quote Now

Compare RatesStart Now →

Policy Details

Changing the details of your insurance policy will also cause your rates to go up. For example, lowering your deductible will cause the rates to increase, while increasing the deductible lowers your rates. 

While it means that you will pay more out of pocket during a claim, keeping a higher deductible can be an affordable way to resolve increasing rates. Changing from comprehensive coverage to minimum liability is also a way to lower the cost of auto insurance.

How often should I expect my auto insurance rates to go up?

You can expect to see your rates increase with each renewal period, which is typically every six months. Some auto insurance companies will allow you to sign a contract for one year, which could help keep your rates from increasing until the next renewal.

Of course, rates don’t always go up. Your rates may go down, especially as you get older, your car gets older, or you reduce coverage when your car is paid off.

How to Stop Auto Insurance Rates Going Up: The Bottom Line

It’s normal to watch your car insurance go up every year. But you can prevent your rates from going up too much by paying attention to the personal factors that can increase your car insurance rates.

When it comes to the factors you can’t control, shopping around for free auto insurance quotes and discount options from several different auto insurance companies can help you save money on car insurance.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

secured lock Secured with SHA-256 Encryption