Information checked: 2026-09-10 · Maintenance label: Evergreen check
A renewal notice with a higher premium is not necessarily a mistake, and it is not necessarily fair either. It is a repricing based on a long list of factors, several of which you can check and some of which you can change.
The reflex is to shop immediately. The better order is to check the policy you already have first, because a premium rise sometimes reflects a coverage change or a record you can correct.
This guide covers what insurers price on, which discounts to ask for by name, and how to switch without creating a coverage gap.
Key takeaway
Insurers price on your driving record over roughly the last three to five years, prior claims, vehicle, location, mileage and coverage history — and in many states a credit-based insurance score, which some states restrict and several ban. Before switching, ask for a discount review and check whether your deductible and coverage still fit. When you do switch, make the new policy start before the old one ends.
Table of contents
- What the premium is actually built from
- Before you shop: three checks on the policy you have
- Check the coverage, not just the price
- How to switch without a gap
- If you think the increase is improper
- Frequently asked questions
- Summary
What the premium is actually built from
The NAIC's consumer guide lists the factors insurers commonly use. The largest is your driving record, and the records of everyone else covered by the policy, over the last three to five years.
- Driving record for you and other covered drivers, over roughly the last three to five years
- Prior claims, which insurers can see through industry claims databases such as CLUE
- The vehicle itself, its type and its value
- Where you live, and how much you drive
- Your history of continuous coverage
- Age, gender and marital status, where a state allows their use
Credit also matters in many states. The guide notes that some states restrict the ways insurers can use credit-based insurance scores, and several states ban their use outright. Whether your credit affected this renewal therefore depends on where you live.
A claim you made two years ago, a new driver added to the policy, or a move across town can each move the number without anything in the notice explaining it.
Before you shop: three checks on the policy you have
- Ask what changed. Call your insurer or agent and ask specifically why the premium rose. A rate change applied to everyone in your area is a different problem from a claim or violation attached to your record.
- Check the record. If a claim or violation on the file is wrong, correcting it is worth more than any discount.
- Ask for a discount review by name. Insurers do not always reapply discounts as your circumstances change.
Discounts the guide identifies as commonly available:
- Bundling auto and home insurance with the same company
- Insuring more than one vehicle
- Safety devices fitted to the vehicle
- Completing a defensive driving course
- Membership of certain organisations
Ask about each one explicitly. ‘Do I qualify for any discounts?’ produces worse answers than ‘Do you offer a defensive driving discount, and what course qualifies?’
Your regulator, and the complaint recordNAIC consumer resources ›Find your state insurance department and look up closed, confirmed complaints against a company before you switch to it.Check the coverage, not just the price
Your deductible is what you pay out of pocket on a claim before the policy pays. Raising it lowers the premium, but only choose an amount you could actually produce on the day of a claim.
Before cutting anything, know what each piece does:
| Coverage | What it does | Usually required by |
|---|---|---|
| Bodily injury and property damage liability | Pays others you injure or whose property you damage | State law |
| Uninsured and underinsured motorist | Covers you when the at-fault driver has no or too little insurance | Some states |
| Medical payments or personal injury protection | Pays medical costs after a crash | Some states |
| Collision | Damage to your own vehicle in a crash | Your lender, if the car is financed |
| Comprehensive | Non-collision damage such as theft, hail or fire | Your lender, if the car is financed |
Cutting liability limits to reduce a premium is the cut most likely to be regretted. It is the coverage that stands between a serious at-fault crash and your own assets.
How to switch without a gap
- Get quotes for the same limits and deductibles, or the comparison is meaningless.
- Look up the company's complaint record before you commit. The NAIC compiles closed, confirmed complaints reported by state insurance departments and makes them searchable by state, company and insurance type.
- Confirm the new policy's effective date and make sure it begins before the old one ends.
- Only then cancel the old policy, in writing, and get written confirmation.
- Check whether a refund of unused premium is due.
- Update your lender if the vehicle is financed.
The NAIC's own caution is worth repeating: do not use a single factor to choose an insurer. Compare price, financial condition, history and complaint record together.
A lapse in coverage is expensive twice over — it exposes you while it lasts, and a gap in coverage history is itself a rating factor at the next renewal.
If you think the increase is improper
Rates are regulated at state level. If you believe your insurer has made an error, applied a claim that is not yours, or handled the renewal improperly, your state insurance department's consumer services staff is the place to take it.
Before filing, gather the policy, the renewal notice, your correspondence and a clear written account of the problem — a complaint form will ask for your details, the type of insurance and the reason for the complaint.
This is general consumer information rather than advice about your policy. Coverage requirements, rating rules and complaint procedures are set by your state.
Frequently asked questions
Why did my car insurance go up when I did not make a claim?
Premiums reflect more than your own claims: vehicle, location, mileage, other drivers on the policy, coverage history, and in many states a credit-based insurance score. Ask your insurer what specifically changed.
Does credit affect car insurance rates?
In many states, yes. Some states restrict how insurers may use credit-based insurance scores and several ban their use, so it depends on where you live.
Which discounts should I ask about?
Bundling auto and home, insuring multiple vehicles, vehicle safety devices, a defensive driving course, and membership of certain organisations.
Should I raise my deductible?
It lowers the premium, but only to an amount you could actually pay out of pocket on the day of a claim.
How do I avoid a coverage gap when switching?
Confirm the new policy's effective date starts before the old one ends, then cancel the old policy in writing and keep the confirmation.
Summary
Ask what changed before you shop. A wrong claim on your record or a discount that was never reapplied is worth more than a quote.
Compare identical limits, check the complaint record, and start the new policy before the old one ends. A gap costs you twice.
- NAIC, A Consumer's Guide to Auto Insurance — The rating factors insurers use, coverage types, how deductibles affect premium, and common discounts
- NAIC, How to file a complaint and research complaints against insurance carriers — How to reach your state insurance department and how the Consumer Information Source complaint data works