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Why Did My Car Insurance Go Up?

We know any increase in expenses can be frustrating, and that includes your car insurance premium. Many factors make up your premium, some that are within your control, and others that aren’t. Insurance companies rely on data to calculate rates based on how likely it is that a loss will occur. The more likely a loss, the higher the rate will be. Information used includes details about the vehicle being insured, the location where it will reside and the details about drivers of that vehicle.

Some premium factors are out of a customer’s control. They include:

While advancing technology makes us safer, it also makes vehicles more expensive to repair when an accident happens. For example, what used to be a simple plastic bumper may now be a several-thousand-dollar bumper with expensive cameras, sensors and microchips that needs to be replaced. Factors like inflation, supply chain challenges and labor shortages can drive repair costs up even more. 

Different areas vary greatly in the number of accidents, rates of theft, population density and weather patterns. All of these impact insurance costs because they impact the likelihood of a loss occurring.  

More frequent and extreme natural disasters, like thunderstorms, floods, wildfires, hurricanes and hail, have caused catastrophic losses across the country. Vehicles are frequently damaged in these events, just like homes are. The increased frequency of these events can cause premiums to rise, especially in areas most prone to these losses.  

There are things you can do to decrease your premium. Some of them are:

Choosing higher deductibles can have a significant impact on lowering your premium. That said, be sure to set your deductibles at an amount you’re comfortable paying in the case of a loss.

Amica offers a variety of car insurance discounts* for policy bundling, being a good student, defensive driver training, safety features on your vehicle, how you pay your premium and more.

You have control over how you drive ­­– and with a clean driving record, you avoid having premium surcharges for violations.

You may not be able to control the severity of all losses, claims in your area, or costs to replace vehicles and parts, but everyone plays a role in the cost of insurance. Everyone has the ability to help keep insurance premiums down by taking steps to mitigate losses and making claims in good faith.

What is my role in the process?

It can be expected that your premium will fluctuate up or down upon each renewal. However, it’s important to take the time to review your policy information at each renewal to make sure you’re getting all possible discounts, and that your coverages are adequate and necessary. Some discounts require documentation – like your student’s academic transcript for the Good Student Discount – and if it isn’t sent in, the discount may be removed.

Your coverage needs may also change. For instance, sometimes customers will opt to remove physical damage coverage from an older vehicle if they think they’ll pay more for insurance over time than they’d get from a claim.

We’re always happy to discuss your policy, discount and coverage options with you to make sure you’re getting the best price and protection. 

* Discounts may vary and are not available in all states.