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Why are Insurance Rates going up?


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Hey Scotty,


I have an impeccable driving record and yet my insurance premium with Wawanesa went up 40% year over year.  This has been a trend in the greater automobile insurance industry.


What’s going on, Scotty?

9 Answers

I've heard that from a number of people. Insurance industry greed is most likely the issue, after all they have a captive clientele. The increased cost to repair today's insanely complex vehicles is probably another factor, as is the high overall inflation rate. (To be fair for whatever reason my car insurance actually went down a little this year - but I have very old cars and only carry liability coverage.)

With more EVs hitting the market, I can only imagine premiums will go up even higher.


IMHO, it’s a couple of factors. 

1) General (hyper)inflation

2) More complicated cars 

3) More expensive repairs

4) More break ins and thefts/robberies

5) General (hyper)inflation 

Posted by: @kaizen

IMHO, it’s a couple of factors. 

1) General (hyper)inflation

2) More complicated cars 

3) More expensive repairs

4) More break ins and thefts/robberies

5) General (hyper)inflation

@Kaizen sad, this pretty much sums this all up. Especially with Kias and Hyundais. Fortunately, I haven't had my premiums go up too much. Three cars combined only sets me back $145 a month. I have full coverage on two cars, and liability w/ uninsured motorist coverage on the third. That said, there's still an increase of $8 from the prior 6 months, and I've never had an accident, or even a speeding ticket. 


For us in WA State one determining factor was credit score. The better your credit score the more discount on auto insurance rate. When Covid hit they said insurance companies aren't allowed to use credit scores anymore for a fee years. Well insurance companies aren't in the business of losing money so they increased the cost for those with good credit scores so it makes up for less they make from those with bad credit scores due to the new law.

Mine increased over $300 even though I get multiple car discount, new vehicle discount, good driving record discount, low yearly mileage discount etc.

In general insurance companies are greedy and will always find a way to rip people off.


Every insurance company uses inflation as an excuse to increase price. Another thing is if you use them longer than 2 years, it means you like them, and they can freely increase your rate. What's worse is some people have autopay turned on. It's a good idea to shop around every 2 years.

Posted by: @daywalker

my insurance premium with Wawanesa went up

do you have other options?

I do have options, but Wawanesa was the cheapest one for me for the past 10+ years. Even earlier this year, they were $700 cheaper than AAA (usually second cheapest for me).

well at least you have options. We have ONE provider so you take what they give you and you like it.
Anyway,many things factor into insurance premiums. Accident rates for example.
Maybe it's because a lot of people have been buying new cars lately and the average vehicle value has gone up.


I pay about 85 USD a month. You?

With Wawanesa I pay every 6 months. Right now, it’s $1,000 every 6 months.
Earlier this year (and before) it was $700 / 6 months.


3 cars under the policy with the newest being 14 years old.  2 of the 3 have full coverage.

I was talking about one vehicle. There’s no discount for additional vehicles.

Multiple vehicle discount is included in my policy. Anyways, for each vehicle it ranges from $290 to $400 every 6 months. Although, I recently sold a vehicle so the prices of the other two will increase slightly.

I would love to have your rates


It's a symptom of a much bigger problem. That problem is inflation. It's why we are getting sticker shock at the grocery store and the gas pump. The average price of a car is now above $50,000. People are now taking out 6 and above year loans to get one. When people wreck them or they get stolen the replacement costs are equally way up. That's what your paying for.

Stop electing kooks who are shutting down our energy production in favor of sending our money to hostile countries who have no qualms about producing as much oil at inflated prices as possible.

Responsible spokesmen with opposing viewpoints are offered an opportunity for rebuttable. Just keep the foul language to a minimum.



They are all trying to get ahead of inflation but causing it in the process. And rates never seem to go down. Ever notice that?

It's like car dealers marking up cars 5K over MSRP. Everyone predicted people would stop buying cars as a result. That never happened.

I know this is a pro-Honda forum but read this. We in the states are next.

I know the hate mail is coming so let me just say opposing viewpoints are welcome.

No hate, just facts. My rates have gone down a few times. The insurance company makes changes from time to time to rebalance/restructure rates, reward good drivers more, and punish bad drivers more.