Anyone that has insurance is likely worried about their premiums going up at the renewal period. That's why it helps to know why insurance premiums go up and what you can do about it.

Inflation Will Cause Premiums to Go Up

Even if you are someone with a perfect driving record that has never made a claim, inflation is going to cause car insurance premiums to go up. This is because all of the costs associated with making a claim have increased, and will continue to increase even more over time. 

For example, the cost of new and used vehicles has gone up, the cost of auto parts is now more expensive, and the labor to install those parts now costs more as well. The rarity of the metals that are needed to make the parts and vehicle also play a factor in everything. Even though we've been driving less as a society since more people have started working from home more often, the cost of repairs is now more expensive.

Your Claims Will Cause Premiums to Go Up

It's important to understand the impact that making a claim with your insurance can make on your premiums. The whole point of an auto insurance company is to account for risks, which is done by deciding how risky the people they insure are. They know that someone that has never made an insurance claim is going to be less of a risk than someone that has made a claim.

One thing to keep in mind is that accidents do stay on your driving history for a limited number of years. Each state is different, and the regulating bodies of each state have made their own decisions about how long an insurance company can allow that accident to impact your premiums. 

Your Region Will Cause Premiums to Go Up

Be aware that the area where you live can have an impact on premiums as well. If you live in an area with drivers that make frequent claims with your insurance company, know that it can impact your premiums as well. This is true even if you are a safe driver. Your area is simply seen as more of a risk than other areas, and the amount you pay is reflected in that.

Keep in mind that the above is based on what a specific insurance company provides, which is why it is worth shopping around. Reach out to other insurance companies in your area to get quotes on new auto insurance coverage.