Why Your Auto Insurance Premium Keeps Going Up - Even If You’ve Never Had an Accident

You’ve been a careful driver. No accidents. No tickets. You pay your premium on time. So why does your auto insurance bill keep climbing?

We get it; it’s frustrating.

And you’re not alone in wondering what’s behind the increase. According to the Bureau of Labor Statistics, auto insurance costs jumped 19.2% in the last year alone, outpacing inflation and leaving many drivers scratching their heads. The truth is, the factors driving your premium higher often have nothing to do with you.

Let’s explore what’s happening—and what you can (and can’t) control.

Rising Repair Costs and Vehicle Technology

Today’s cars are safer and smarter, but they’re also far more expensive to repair. A cracked bumper used to cost a few hundred dollars. Now, with sensors, cameras, and lane-assist systems, it could run into the thousands. According to CCC Intelligent Solutions, the average cost to repair a vehicle after an accident rose to over $5,000 in 2023, up more than 20% from just a few years ago.

Labor Shortages and Supply Chain Disruptions

Auto body shops are feeling the pressure of a national technician shortage. Parts are harder to find, and wages have gone up. These higher costs are passed along through insurance claims, increasing the average payout, even for minor incidents.

Claim Severity Is Up, Even If Frequency Is Down

While the number of claims filed isn’t dramatically increasing, the severity and cost of each claim is. Insurance companies are paying more per accident, which leads to rate increases for everyone, whether you filed a claim or not.

Regional Trends and Lawsuit Costs

Where you live plays a big role. Some areas have higher accident rates, more auto thefts, or are prone to weather-related damage. Others are “litigation hotspots,” where lawsuits and legal fees drive up claim settlements. Even if you're not involved in a claim, your region’s loss trends may affect your premium.

What You Can Do

While you can’t change the cost of a bumper sensor, you can:

Ask your agent to review available discounts (bundling, telematics, safe driver, etc.)
Maintain good credit as most states allow insurers to factor this into pricing
Review your coverage needs regularly to ensure you’re not overpaying for extras you don’t need
Shop carriers with help from your independent agent; we work for you, not the insurance company

You’re not being penalized for being a good driver. You’re caught in a web of rising costs, complex vehicles, and legal trends that affect the entire insurance industry. Our job is to guide you through it, with honesty, transparency, and options.