Alert! Here’s Why Your Car Insurance Rate Is Rising in 2024!

Have you noticed your car insurance rate going up this year?

There’s a lot at stake when we talk about car insurance rates. But no matter where you live, you are going to see an increase in the amount you will need to pay to get your car insured this year.

In general, with the state of inflation, we have gotten used to seeing prices rise for a lot of everyday items. However, it seems like not everyone expects to see their car insurance rate go up like the other prices have been going up in the last few months.

Despite this, we have to give you the bad news: your renewal car insurance rate is going to be higher than last year, with some cases seeing very big increases for basically the same type of coverage.

For some, the significant increase may come as a shock, but even if it has not gone up too much, you may still end up wondering why it has gotten so high!

To help you understand why your car insurance rate has gone up, we have gathered all the reasons that can increase the amount you have to pay when you get car insurance and also looked around to see which states are going to see the biggest increase so that you can be prepared for it!

Have you noticed an increase in your car insurance premium? Did you know it was coming? Why did you think it happened? Let us know your answers in the comments!

car insurance rate
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Your driving record.

Your driving record is always going to influence how high your car insurance rate is going to be.

This includes your behavior on the road and if you have any negative marks on your record, which are going to be disclosed to the company when you are renewing or purchasing a new insurance policy.

The likes of DUIs, speeding tickets, and definitely accidents are always going to rack up your premium since the company is going to perceive you as more of a liability to them.

They will simply expect you to get into trouble and use the car insurance more than someone who has none of these marks on their records would, even if they happened years ago!

Likewise, how much you drive is also going to be a factor. If you have a high yearly mileage, your rate will increase.

On the other end, if you are just a “pleasure driver,” you may qualify for a low-mileage discount or just have lower rates to begin with.

The type of vehicle you have.

On the other hand, you cannot discredit the type of drive you have either. The type of car you have is going to either make your overall total higher or lower.

To put it frankly, the more expensive the car is to purchase, the more expensive it is going to be to repair in the eventuality of an accident, especially if you have collision or comprehensive insurance.

What’s more, you may think you do not have a fancy car, but the companies are also going to look at the history of claims that your particular car model has.

If there have been a lot of claims and the costs have been high when it came to repairing them, then your car insurance rate will go up.

However, if you have a newer car with specific built-in security features, then you may have the pleasant surprise that you qualify for specific discounts.

This varies from company to company, so make sure you check before you expect one.

car insurance rate
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Your credit score.

Insurance providers have gotten around to using your credit history to see how much they should charge you when it comes to how much they will charge you for your insurance.

While we have gotten used to lenders and banks using our credit scores to see how likely we are to be a risk to them, insurance companies have started to do it too. But for them, how good or bad of a credit score you have seems to indicate how likely you are to file a claim.

In their eyes, if you have a lower or bad credit score, then you are more likely to file a claim, which makes them rack up your car insurance bill!

However, not all states allow this. Michigan, California, Hawaii, and Massachusetts prohibit insurance companies from using credit scores as a means to increase car insurance premiums.

Your age and gender.

Yes, this is still something that is being considered. And while we know it is not fair and it has never seemed fair, these two things that you cannot change will influence how much you will have to pay on your car insurance premium.

While you may think it is not a big thing at first, when you realize that the stereotype that women are worse drivers than men influences how much you pay on your car insurance, it is something that can drive most people up the wall.

Yet, there is a silver lining, as some states have legislation in place to prohibit the use of gender when it comes to auto insurance companies. These states are Hawaii, California, Michigan, Pennsylvania, North California, and Massachusetts.

Despite this good news, there is nothing stopping these insurance companies from dividing the amount you will have to pay based on how old you are. In general, the younger drivers will have to end up paying more for their car insurance due to not being as experienced and thus being thought of as more prone to committing accidents.

As you get older, the amount should decrease with age, all until a very specific age that is important for seniors. Once you reach 65 years old, car insurance rates are starting to increase based on your age alone.

No matter the cost of your car insurance, it is good to know you have it on hand in the car and that it is protected, much like your car registration. For safekeeping and easy access, we recommend you get a holder with a magnetic closure from Amazon. They are affordable, easy to use, and save you the hassle of rummaging through the glove box blind when stressed.

car insurance rates
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Where you are located.

Unfortunately, the state where you live is going to weigh heavily on how much you are going to pay on your car insurance. This is because certain states are going to require you to have high levels of insurance and insurance companies adjust the rates based on that so that they still rack in a profit.

Some of the most important factors when your car insurance rate gets adjusted based on location include the likelihood that your car is going to be vandalized or even stolen in your area, how expensive is it to repair a car in your area, and, above all, the weather.

If you live in a location that is prone to frequent severe weather (hail, flooding, and even hurricanes), then the company may adjust its rates for that.

Likewise, depending on whether your area is rural or urban is going to weigh heavily as a factor as well. This is caused due to the higher amount of cars in urban areas, the companies believe that there are higher risks in large cities, hence the raised prices.

When comparing regions, we can see even trice or four times the price for the same car model due to location only!

Which are the states where we are going to see the biggest car insurance rate increase?

Since we have looked at what influences the increase in your car insurance rate, let’s now look at how much they are expected to raise this year and which states are going to be hit hardest.

Generally speaking, experts are warning that you should expect to see increases that start at 5% when compared to the rate you had last year. The states hit most by this are:

  • Georgia and Louisiana: 16%;
  • Arizona and Connecticut: 17%;
  • Washington: 18%;
  • Nevada: 28%.

There are still some states that are only expected to see an increase of about 3%, which are Hawaii, Colorado, North Carolina, and Idaho!

The average amount spent by car owners nationwide last year was around $2,000! And since in some states we are going to see increases, this number may be way higher next year!

Even if the prices of car insurance are growing, we all need the car to get around. If you are thinking of getting a new car and you are recently retired, make sure you take advantage of all the ways you can in order to get the best deal! If you want to know more, check out our article here!


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