Your car insurance
can keep going up even if you personally haven’t become a riskier driver. States or insurance companies can increase rates across all policyholders for a couple of reasons. First, your state might have implemented a statewide car insurance rate increase. Every state has a Department of Insurance and Financial Services, which regulates insurance at a state level. Car insurance companies are required to follow these regulations.
Another reason your rates could be increasing is that more claims are being filed in your area. If other drivers in your area are submitting more claims, your insurance company could be increasing rates to offset this loss.
Car insurance companies pay claims out of a large premium pool. If more policyholders are submitting claims, the amount of money in the collective pool is reduced—and everyone is charged more to make up for it.
This may feel unfair, but sometimes insurers need to increase rates to ensure they will have enough money to cover claims.