It seems like everything these days costs more than it used to. This is true for gas, groceries, delivery services, and more. That is why it’s so upsetting when you see that your car insurance rates are following suit.
Why did my car insurance go up? What can I do to make it go back down again? These are both great questions, and we’re going to answer them for you right now!
Table of Contents
- Why Did My Car Insurance Go Up?
- Inflation
- Your Driving Habits
- What Can I Do About It?
- Reach Out to Pronto Insurance
Why Did My Car Insurance Go Up?
We have good news, and we have bad news. Car insurance isn’t just going up for you; car insurance rates are rising for everyone across the board this year. Nationally, car insurance rates are increasing by an average of 4.9%, according to approved rate filing data from S&P Global Market Intelligence. These rate changes stand to affect more than 62.5 million policyholders across the country.
Inflation
The biggest factor in higher car insurance premiums this year is the same thing that is driving up costs across the board: inflation. Between May 2021 and May 2022, the Consumer Price Index (CPI) rose 8.6%. This means that, on average, we are spending nearly 9% more than we were just one short year ago for the same goods and services.
It isn’t just inflation, though. It’s possible that your car insurance rates have risen because of another factor- you! Remember, car insurance rates are calculated based on a number of underlying factors.
Your Driving Habits
Violations on your driving record, particularly a DUI or multiple speeding tickets, tell your auto insurance company that you’re more likely to have an accident than a driver with no such tickets or violations. The more violations you have, the higher your risk to file a claim, and the higher the risk the insurance company has to pay out. This results in a rate increase.
What Can I Do About It?
Bracing for a rate increase may seem stressful, but some of it is in your control. For one, be sure you’re always as safe, slow, and courteous as possible. You want to avoid any additional dings on your driving record. You can also elect for a new policy, with a new car insurance company. Comparison shopping is a simple way to get the best cost for the amount of car insurance coverage that fits your wants and needs.
Reach Out to Pronto Insurance
We’re here to make car insurance easy and affordable. As you begin shopping for a new, more affordable car insurance policy, make Pronto Insurance the first place you go. We’re here to answer all of your questions, like “Why did my car insurance go up?” and more. We can also provide you with a free quote. When you see it, you may be pleasantly surprised at just how affordable car insurance can still be for you!
