Why and when do car insurance prices go up?
Renewing your car insurance can be an unpleasant surprise: one year you paid a reasonable amount, and the next you discover your premium has gone up, sometimes even without having had any major accidents.
The reality is that Insurers review your profile, history, and overall market context annually.Several factors come into play in this review, but the most decisive one is usually: the claims you declare.
In this article we will see What types of parts cause your insurance to go up in price?, as well as other common reasons that affect your premium, and finally what you can do to avoid overpaying.
The accidents that make your insurance price go up
Not all accidents affect the cost of your insurance equally. The company evaluates the risk of insuring yourself and reflects this in the renewal. These are the most common cases:
1. Fault accidents
If the report indicates that you were responsible, your premium will almost certainly increase. It doesn't matter whether the damage is large or small: the insurer assumes there's a greater risk that you'll cause another accident.
2. No-fault accidents… but with high costs
Even if you're not responsible, if your insurer is required to cover a high amount of damage (for example, property damage to third parties, prolonged medical care), it may affect the price.
3. Small frequent parts
A scratch when parking, a broken rearview mirror, a damaged glass... Even if they are small amounts, Repeated minor claims indicate to the company that you are a valuable customer.Several small incidents in a year often have a greater impact than a single report in isolation.
4. Accidents with injuries
If an accident results in personal injury, the compensation is usually high. This type of claim is usually one of the most impactful on the premium increase at the next renewal.
5. Fraud or suspicion of fraud
In cases where the company detects a dubious or inconsistent claim, even if they pay it, they may classify you as a high-risk customer, making your policy more expensive.
Other reasons why your insurance price increases
In addition to the accidents, there are Other factors that influence the increase in insurance, even if you haven't had any accidents:
General rate increase: Many insurers revise prices annually to cover inflation, increased costs in workshops, spare parts, or legal compensation.
Driver's age: Both very young drivers and those over 65 years of age tend to see increases because they are statistically considered higher risk profiles.
Changes in your personal situation: Moving to an area with a higher accident rate, using your car more (for example: from private to work use) or adding a new driver to the policy will increase the premium.
Vehicle type and age: A more powerful car or one with expensive parts to repair has more expensive insurance. On the other hand, a very old car may no longer be profitable for comprehensive coverage.
Bonuses and discounts that expire: Sometimes your premium goes up simply because you received a promotion the first year that is no longer valid.
What to do if your insurance has gone up in price?
Once you detect an increase, don't settle for the first offer. Here are some strategies:
Check your claims historyIf you believe there is an error or a report has been incorrectly recorded, file a claim with your insurer.
Negotiate with your company: Often, all you need to do is call and show interest in switching insurance companies to get a discount.
Compare alternatives: Other companies may value your profile differently and offer you better conditions.
Adapt the coverages: Perhaps extended third-party insurance would be sufficient instead of comprehensive insurance with a high deductible.
Unsubscribe on time: Remember that you must notify at least with one month in advance not to renew automatically.
Conclusion
Insurance prices rise mainly due to the claims you declare, especially if they're frequent, caused by fault, or involve injuries. But external factors such as inflation, your driver profile, and even the car you drive also play a role.
The key is in understand why and when the rise occurs, and act early to renegotiate, adjust coverage, or change insurance companies. That way, you'll avoid overpaying each year and stay protected on the road.
Frequently Asked Questions (FAQ)
Does the price of insurance always go up every year?
Not always, but it's common for it to increase slightly due to inflation and the general cost of repairs. If you haven't had any claims, the increase is usually small, although it depends on each insurer's policy.
Which claims increase the premium the most?
At-fault accidents and those involving personal injuries tend to be the most expensive to renew. The frequency of small claims, even if they are low-value, also plays a significant role.
Can I avoid having my price raised after an accident?
Not always, but you can negotiate with the insurer, check the claim form for errors, or find another company that better assesses your profile.
What happens if I don't give notice in time to unsubscribe?
If you do not notify with at least one month in advance Before renewal, the insurance is automatically renewed and you will be required to pay the following year's premium.
Is it legal to raise the price without warning?
No. The company is required to notify you of the new premium amount before the renewal date. If it doesn't, you can cancel the contract even after the renewal deadline.
Can I change insurance even if I have an open claim?
Yes, you can change insurance companies, but the claim will continue to be handled by the company that was in effect at the time of the accident.
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