Compare Car Insurance Companies That Raise Rates Without Notifying You [2021]

Unfortunately, car insurance companies that raise rates without notifying you are very common. Most states don’t have any laws against a car insurance company changing their rates. Many factors affect your car insurance rates, and rates will increase as those factors change. Car insurance companies that raise rates without notifying you will usually increase your rates at renewal. Look carefully at your policy when it comes time to renew to catch any rate increases.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 28, 2021

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Here's What You Need to Know

  • In most states, it’s legal for car insurance companies to raise your rates without notifying you
  • Generally, rates are raised either just after signing a policy or at renewal
  • Many factors affect your rates, and rates increase when those factors change

Car insurance rates are very fluid since your circumstances can change often. Even the best car insurance companies increase rates every once in a while.

Quotes from car insurance companies that raise rates without notifying you will usually start low but rates will increase over time, especially at renewal.

If your car insurance rates have been raised, it’s a great time to shop around for a new policy. Compare multiple companies before you buy car insurance to see which one can offer you the best deal.

Keep reading to learn more about car insurance companies that raise rates without notifying you. Enter your ZIP code now to compare free quotes from car insurance companies in your area.

Can car insurance companies raise your rates without notifying you?

Unfortunately, in most states, car insurance companies can raise your rates without much notification. However, rates are generally only raised at renewal.

You will receive your car insurance renewal notice about a month in advance. It’s very important that you carefully check all of the information you are sent.

If your renewal comes with a rate increase, ask your insurer why. If you have had an accident or gotten a ticket since you signed up, your new rates can reflect that change to your driving record.

Rates may also increase if you are no longer receiving a discount. If you are in an accident not only will your car insurance rates increase after a claim, but you will also lose that safe driver discount.

Some car insurance companies will offer accident forgiveness. For example, does GEICO raise rates after an accident? GEICO offers accident forgiveness to drivers for their first at-fault accident.

Can car insurance companies raise rates within a few months of buying a new policy?

The quote you receive from a car insurance company is based on the information you provide. It can take some time for the company to verify all of your information.

If you give the insurance company inaccurate or incomplete information, it may raise your rates once the truth comes out.

According to the Insurance Information Institute, you are technically committing insurance fraud if you don’t give your insurance company the correct information.

Not only can your rates increase, but your company can even deny you coverage for lying.

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What factors affect your car insurance rates?

There are many factors affecting car insurance rates. Your driving record is the most obvious factor since it determines if you are a risky driver.

Some of the other factors that affect your rates are:

  • Your age
  • Where you live
  • Your credit score
  • The vehicle you are insuring

Why did my car insurance go up with GEICO, State Farm, or any other top insurance company? Generally, the reason your car insurance rates increase is that one of these factors changed.

It could be that you were in an accident, got a speeding ticket, or even bought an expensive new car.

Rates can also go up even if nothing has changed for you. Periodically, insurance companies will raise rates because their costs have changed. The increased rates make up for the extra money the insurance company is paying out on claims made by other drivers.

Drivers can lower car insurance rates by taking advantage of discounts, lowering coverage levels, raising deductibles, and shopping for quotes from other insurance companies.

What You Need to Know About Car Insurance Companies That Raise Rates Without Notifying You

Finding affordable car insurance companies that don’t raise rates without notifying you is difficult unless you are in a state that requires you to be notified about rate changes.

While rates from car insurance companies that raise rates without notifying you may start low, they probably will end up pretty high over time. Shopping around often is the best way to avoid rate increases and keep your car insurance rates as low as possible.

Now that you’ve learned all you need to know about car insurance companies that raise rates without notifying you, enter your ZIP code below to compare car insurance quotes from providers near you for free.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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