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Why is My Car Insurance So High? The 8 Most Common Reasons For Car Insurance Rates to Go Up 

What if there was an easy answer to one of your biggest questions? 

Each month, countless California drivers ask themselves why their car insurance premiums are so high. To make matters worse, this rate will often spike upward, and there is not always an easy explanation as to what happened. 

Fortunately, possible answers to the question “Why is my car insurance so high?” are very straightforward. Wondering why your rates have increased? Keep reading for some answers. 

1. Your Personal Driving Record 

The biggest factor in why car insurance rates go up is the driver’s record. Generally, coverage is cheapest for those with a history of safe driving. If your driving record changes, however, the premium for your auto insurance is likely to increase. 

What you can do about it: Completing a defensive driver program may actually lower what you pay. Driving safely and following the rules for three to five years will go a long way to decreasing your rates. 

2. Type and Age of Your Vehicle 

No matter what your driving record is, the type of vehicle being insured has an impact on your premium. Luxury cars that cost more to repair and sports cars that lend themselves to fast, risky driving will both command higher premiums. 

What you can do about it: Downgrading to a simpler ride that has a high safety rating and is known to be reliable might help you lower the cost of your monthly premium. 

3. Geographic Location and Its Risk Factors 

Believe it or not, where you live plays a major role in how much you pay for automobile insurance. Living in a certain state, city, or even zip code may be enough to drive your premium up because the carrier thinks the area is relatively unsafe due to accidents and vehicle-associated crime. 

What you can do about it: The good news is that moving to a safer area is sometimes enough to drive your premium down. Sometimes that’s just not possible, though, so find out if using a steering wheel lock and parking in a locked garage can lower those premiums. 

4. Increasing Costs and Inflation 

Unfortunately, some of the reasons why car insurance rates go up are beyond your control. For example, when inflation is impacting virtually the entire economy, very few sectors go untouched. 

What you can do about it: Shop around and compare prices. There’s no law that says you have to stay with your current insurer. One of the best ways to save money is to switch! 

Smiling female insurance agent helps customer find a way to lower his insurance bill in California.

5. Rise in Theft of Vehicles and Car Parts 

One of the most shocking reasons that coverage costs have increased in recent years is the rising crime rate of automobiles and auto parts. After a surge of stolen vehicles in 2022, carriers started raising their rates to reflect the increased likelihood that they would have to pay for more replacement vehicles and parts than ever before. 

What you can do about it: Take steps to protect your vehicle, including parking in a secure area, using a steering wheel lock and consider getting a catalytic converter cover. If you are worried about your own vehicle being vandalized or stolen, consider adding comprehensive coverage to your policy. 

6. Impact of Climate Change on Insurance Costs 

Climate change plays a far larger role in the cost of auto premiums than most consumers believe. That’s because the effects of this change have been felt throughout California, and they effectively put vehicles in the state at enhanced risk. 

What you can do about it: Just as carriers look at your area to determine how safe the other drivers are, they also look at your area to see how many weather-related claims are made each year. Unfortunately short of moving, the best thing you can do is shop around for better rates with a new carrier. 

7. Household Changes 

For parents, one of the most common factors that affect car insurance rates is that they have added one or more children to the automobile insurance policy. Finding affordable car insurance in California in this situation is difficult. Any time a new driver is added to your policy, the carrier is likely to change your rates based on the potential risk factors of the new person. 

What you can do about it: There are ways to lessen the impact of a new, young driver. Adding them to an established parental policy will be cheaper than getting them their own policy. Taking advantage of discounts, such as a good student discount, will help. The important thing to remember is these rates will go down as they age – but only if they keep a good driving record. 

8. Post-Pandemic Prices Have Increased 

Unless you got your license very recently, then you have likely already seen your insurance increase due to something you have no control over. Specifically, it has probably increased since the COVID-19 pandemic. Now that lockdowns are over and more people are commuting to the office again, premiums have returned to their pre-pandemic levels. 

What you can do about it: Take advantage of discounts and shop around for your insurance. Raise your deductible as high as you are comfortable with to lower your premium. Drive a car that has a high safety rating and is reliable. These are some steps you can take to help decrease higher premiums. 

Get the Most Affordable Car Insurance in California Today 

Now that you know why your rates have gone up, you probably have another question: “Where can I find cheap car insurance near me?” Good news: the answer to that question is just a click away! 

At Cost-U-Less, we’re here to give California drivers the best coverage at rates that won’t leave you sweating the bill. Ready to stop worrying about your premium constantly increasing? Call us at (800) 390-4071 or get a fast and free car insurance quote online. You can also find a nearby office and visit us in person. 

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