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5 reasons your car insurance rate changes

Liberty Mutual | March 2022

While it can seem arbitrary, there are actual reasons you can see your price go up and down.

1. Driving record

Ask yourself honestly, are you an at-risk driver? Incidents such as accidents (even if you weren't at fault), speeding violations, reckless driving, and driving while intoxicated can all cause your premiums to spike. If you've filed a claim in the past few years, this might also result in an increase to your premium. You’ve heard it before but do your best to remain on your guard and maintain good driving habits. As time goes on, past claims on your record will decrease if you keep losses to a minimum.
 

2. Credit score

Oh, credit score. What don’t you impact? Your personal insurance score, which is based partially on your credit score, is used in combination with other risk factors to help determine your home and auto rates. This practice lets insurance companies cover more people and promotes equitable rates for all customers
 

3. How much you drive

It's pretty simple: the more you drive, the more opportunity there is to get in an accident. Let your car insurance company know if your lifestyle changes and you're driving less, because you may be eligible for lower rates.
 

4. The car you drive

Generally, a new car costs more to repair after an accident. New cars are also at a higher risk of break-ins or theft. So, if you're thinking about buying that dream car you've always wanted, talk to your insurance company about how your rates will be affected. Keep in mind luxury cars aren't the only ones that are at a high-risk of theft. Thieves also target cars with high-demand parts.
 

5. Adding a driver to your policy

All the factors above as they pertain to an additional driver on your policy can ultimately impact your rate. As you might guess, adding a teenage driver can generally bump up your rate due to the high-risk associated with new drivers.

Worried about insuring your teen driver? If they have a GPA of a B or better, they may qualify for a Good Student Discount.

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