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Why did my auto insurance rates go up?

Auto insurance can be one of the most confusing aspects of owning a car. Each company swears they will save you hundreds of dollars a year; it seems like the state is always changing the requirements for limits, and if you need to make a claim, it can be incredibly difficult to navigate the settlement process.

But what if your insurance rate increases even if you don't make a claim? That doesn't seem right. Why would your rates increase if you have a clean record?


There are several reasons why your insurance may have gone up.

Traffic Citation: If you got a speeding ticket, or another type of ticket (for running a stop sign, or something similar), your rates may increase. These citations typically stay on your record for at least three years. If you get pulled over, you may want to consider slowing down a bit in the future to avoid a larger increase.

A Growing City: Is your city increasing in size? More cars create more traffic, which means the likelihood of an accident is statistically higher. An increase in property values also could have an impact, because, theoretically, the average value of cars near you may proportionally increase. A growing city also often means an overhaul of laws associated with insurance. If minimum coverage limits on insurance are increased, the overall cost of insurance as a whole increases.

Your Credit Score: Insurance companies are allowed to monitor your credit, so if your score takes a sudden dip, you may see an increase in insurance cost. This has been made illegal in a few states, but in Tennessee there are no laws preventing it.

Your Insurance Company Lost Money: Some years, the number of claims and the damages paid out to drivers from their insurance companies is more than they bring in via insurance policies. Fraudulent claims and uninsured drivers, among other things, costs insurance companies billions, which then gets transfered to you, the customer.

You Removed a Car from Your Policy: If your insurance is bundled (home and auto, multi-car, etc.), you could be getting a better rate per vehicle than you would by having individual policies. If you remove a vehicle off of your bundle, this could increase the cost per vehicle.

Because They Can: According to former insurance employees, companies create a "loyalty index", meaning they use statistics and consumer information to see if individuals would switch insurance companies if they suffered a price increase. These indexes are specific enough to see how much money they can increase rates without users switching. That means you can end up paying more just because you're a loyal customer.


Insurance companies are notoriously difficult to work with. If you've been injured in an accident and are having trouble navigating your insurance claim, call us. You deserve to be paid for what you've gone through, so dial 615-242-9000 today.

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