5 Things That Could Cause Your Auto Insurance Premiums to Rise

When you own a car, there's no getting around the cost of auto insurance. Data from U.S. News & World Report puts the average annual cost of an auto insurance policy at $1,547. But the amount you'll pay will hinge on different factors.

It's also possible for your auto insurance costs to rise over time. Here are a few reasons that might happen to you.

1. You got into an accident

Getting into an accident is one reason you might see your auto insurance rates rise. Unfortunately, it may not matter whether you were the one who caused the accident or not. Simply having to file a claim against your auto insurance policy could result in higher premiums.

2. Moving violations

Your driving history plays a big role in determining how much you pay for auto insurance. If you're caught speeding or are issued another moving violation, that's something your insurer is unlikely to take kindly to. From there, you're likely to be considered a more risky driver, which means you might see the rate on your auto insurance premiums rise.

3. Moving to an area with a high crime rate

Your location, like your driving record, plays a role in your auto insurance costs. If you move to an area with a higher crime rate, it may result in an uptick in your premiums, since there may be a greater chance of your vehicle being stolen or vandalized in some way. Similarly, the simple act of moving from a suburban area to a city might result in higher auto insurance rates -- even if the city in question is a relatively safe one.

4. You got older

Aging is clearly something you can't help. But auto insurers tend to view older drivers as more of a risk. The thought is that their reflexes may not be as sharp, and they may not have the same ability to potentially avoid an accident as younger drivers. Of course, this line of thinking does not apply to all senior drivers. And you can easily have a driver in their 70s or 80s who's sharper and has better reflexes than a 30-something driver. But still, auto insurers tend to generalize for rate-setting purposes.

5. Your driving habits have changed

Maybe you used to work from home and used your car sparingly. If you're now a full-time commuter, that change in your driving habits could result in higher auto insurance costs, because you'll probably lose the low-mileage discount you were previously entitled to.

You can try to save money on auto insurance

If the cost of auto insurance has risen for you, there may be steps you can take to eke out some savings. First, shop around with different insurance companies. There's no reason to assume the insurer you've used for years has the best rates in your area.

Also, see if you're eligible for a discount based on factors like limited driving (if that applies to you because, for example, you've recently taken a remote job) or a safe driving record if it's been years since you've had a moving violation. Finally, if you own a home, see whether you can save money on your premiums by bundling your auto and homeowners insurance policies. You may be able to shave a little off your costs by using the same company for both.