Many factors are taken into account when an insurance company determines your car insurance premiums. Changes in your claims history and driving record as you mentioned are two things that can affect your rates and cause them to rise.

There are many factors that affect your car insurance rates. For rates to go up it normally means there was a change of some sort or it may be that statewide rates have risen for the coverages you have on your policy. The some of the reasons why auto insurance premiums rates may rise include:

1. A change in your driving record. Your driving history and amount of violations you have been convicted of will affect your rates. A clean record will allow you normally to receive a safe driver discount and receive lower rates. Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium.

2. A change in your claims history. If you have not placed any claims with your insurance provider and have a clean history then insurance will typically cost less than if you have made multiple claims or others have made claims against your policy.

3. A change in your credit history. In many states the insurer can take into account your credit history since statistically those with bad credit tend to make more claims and also are more likely not to make their car insurance payments. Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium.

4. A change in drivers will affect your rates. Adding drivers to the policy will change the premium rate of your auto insurance since there is more risk with more operators of a vehicle.

5. A change in vehicle or coverages. The type of vehicle being insured will be taken into account and if you change from insuring a family sedan to a sport car then your rates would normally rise. Or if you change from liability only to including physical damages of collision and comprehensive then your rates would go up for these added coverages.

6. Where you live and the car is garaged (geography) makes a difference with rates so if you move your rates may change. Drivers living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.

7. If the use of the vehicle changes from personal to business rates will normally rise. Or if you begin driving more miles daily or annually then you are at more risk for an accident and rates can rise.

8. A change in marital status may change your rates. A married person will pay less than a single person with an identical driving record since they are normally more mature and safer drivers.

9. A change in occupation may affect rates. Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.

A change in any of these items can cause your insurance premiums to also change. Insurance companies underwriting rules and rating systems differ so to find out specifically about the reasons your insurer raises rates you can discuss this issue with your agent. If you want to compare car insurance, get a quote from us.