Everything costs more these days. Groceries have gone up and products we could get readily are more scarce or not available since Covid. Our workforce has shifted, and people have changed jobs. Many industries are short on labor. But why does my insurance cost go up when I have not had any claims?

There are many factors affecting the cost of car insurance these days and they affect each of us differently. While you may not have any accidents, tickets or claims, many of the others may affect you in the background.

  1. The most obvious is activity. As you make a claim on your policy and the carrier pays out, the cost of your policy will likely go up. You can lose a claims-free discount just for filing a claim, even if no money gets paid out.
  2. You may have a claim and not even know it. Did you know towing reimbursement and glass repairs count as claims with most carriers? They can affect your rate or the ability for you to change carriers.
  3. As inflation goes up and the cost-of-living rises, people decide to drive without legally mandated insurance. This means if you are in an accident with one of these drivers, you can end up paying the price out of your pocket.
  4. Distracted driving is at an all-time high. Answer your phone, send a text message, or look for directions while driving? Those are all items that distract you from driving and can lead to an accident.
  5. How is your financial health? Many carriers use credit-based factors in an insurance score. It is one of the components in your overall insurance cost. A poor insurance score has the ability to raise your rates.
  6. Labor shortages, supply shortages and rising costs all mean it is more expensive to repair your vehicle in case of an accident. While there are many great safety features in cars these days, think cameras, sensors and airbags, they are also expensive to replace.

Talk to us about your insurance! We can help you evaluate changes in your current policy that can save you money. We can help look for discounts or evaluate new carriers.