Why did my car insurance go up? And how to lower it

Your car insurance usually goes up for one of two reasons: something changed for you, like an accident, a ticket, a new car, a new address or a lost discount, or your insurer raised rates for everyone because repairs, parts and medical care cost more. Industry-wide car insurance prices are actually falling in 2026, so if yours rose at renewal, it's worth asking why and shopping around.

By the Fast Insurance Group editorial teamPublished by Marcus L. Barber, former licensed Maryland property and casualty producer (2010–2012)Reviewed by Marcus L. Barber on October 17, 2026Updated October 17, 2026

This guide is general education, not advice for your situation. We're an independent publisher, not an insurer or agent, and we may earn a commission from partner links. How we make money.

Are car insurance prices rising?

Not right now, on average. The Bureau of Labor Statistics tracks car insurance prices in the Consumer Price Index. In September 2026, the motor vehicle insurance index was 5.0% lower than a year earlier, after several years of sharp increases. Meanwhile, the cost of vehicle maintenance and repair was up 5.8% over the same 12 months.

The Insurance Information Institute (III) reports that personal auto insurers' results improved in 2025 and premium growth slowed to its lowest since 2021. A falling national average doesn't mean your premium will fall, but if your rate jumped at renewal, it's a good time to compare.

Reasons tied to you

Common factors insurers use to set your price, including those the National Association of Insurance Commissioners (NAIC) lists:

• Claims and accidents. The NAIC calls claim frequency the single greatest influence on rating. An at-fault accident usually raises your rate at renewal, and a second claim in a policy period can too. See how much rates go up after an accident.
• Tickets and violations on your driving record.
• A new address. Your ZIP code (territory) affects theft, crash and repair-cost risk.
• A different car. Make and model drive repair and theft costs.
• Drivers on the policy. Adding a teen or young driver is one of the biggest jumps.
• Mileage and how you use the car.
• Credit-based insurance score, where state law allows it.
• A lost discount. A new-customer or paid-in-full discount may have ended, or a good-student discount lapsed.
• A past cancellation for nonpayment.

Reasons tied to everyone

Insurers file rate changes for whole states or groups of drivers when what they pay out on claims rises. A 2020 III-sponsored study found that new safety technology, like crash-avoidance sensors, has increased the cost of repairing or replacing damaged cars, along with rising medical costs and distracted driving. When a base rate increase hits, your premium can rise even if nothing about you changed.

Your rights

• Ask for the reasons. Call or write your insurer and ask exactly what drove the increase. If it's an accident or claim, ask which one, and check that it's recorded correctly.
• Credit-based decisions. Under the Fair Credit Reporting Act, if an insurer charges you more based in whole or in part on your credit report, it must send an adverse action notice naming the credit bureau it used. The FTC says you can then get a free copy of your report if you ask within 60 days, and dispute errors.
• Limits on credit use. The NAIC says that in most states insurers can't use a credit-based insurance score as the sole reason to raise your rate, and some states prohibit certain uses altogether.
• Complaints. If you think the increase is wrong, contact your state insurance department.

How to lower your car insurance

1. Compare at least three quotes with the same limits and deductibles. See how to compare car insurance quotes.
2. Raise your deductible. The III says going from $200 to $500 could cut collision and comprehensive costs by 15 to 30 percent, and $1,000 can save 40 percent or more.
3. Drop collision and comprehensive on an older car. The III suggests it may not be cost effective if the car is worth less than 10 times the premium. Not an option if the car is financed. See liability vs. full coverage.
4. Bundle your car with home or renters insurance, or insure several cars with one company.
5. Ask for low-mileage discounts, or try a usage-based or pay-per-mile program if you drive little or very safely.
6. Claim driver discounts: accident-free, good student, driver training and defensive driving courses where offered.
7. Ask about vehicle discounts for safety and anti-theft features.
8. Check group discounts through employers, alumni groups and professional associations.
9. Review your coverage each year. Remove cars you no longer own and drivers who've moved out. But keep strong liability limits; that's the wrong place to save.

Discounts and their size vary by insurer and state, so ask each company for a list.

A renewal checklist

• Compare this year's declarations page to last year's: coverages, limits, drivers, cars, discounts.
• Ask your insurer to explain every change in writing.
• Check your driving record and CLUE claims report for errors.
• Get new quotes at least two weeks before renewal, and don't cancel your old policy until the new one is active. See cancelling car insurance.