Whether you were recently in a small fender bender or purchased a new vehicle, you may be wondering how the situation can impact your auto insurance rates. When budgeting for your policy, it’s essential to take into account the various factors that can impact your monthly payments. If your rates increased suddenly, it might be due to one of the following causes. 

Why Do Auto Insurance Rates Increase?

1. At-Fault Accidents

If you were to blame for an accident and the other party files a claim, you’ll see an increase in your insurance rates. Because at-fault accidents require payout from the insurance company to fix the vehicles involved, your rates will be raised to make up for the loss in funds.

Some policies pay for the first accident without increasing your rates, while others forgive payouts less than $500. Speak with an agent to learn how your policy approaches these situations.

2. Multiple Traffic Violations

auto insuranceWhile speeding tickets may not seem like significant infractions, these small traffic violations rack up points on your license and increase insurance rates. Traffic violations fall into two categories: minor and major. Minor offenses include speeding, improper passing, and failing to yield, while driving under the influence and going the wrong way are major ones.

To prevent these violations from impacting your insurance rates, try fighting the tickets in court. If you win, you’ll be granted forgiveness. Attending traffic school can also make up for the points against your record.

3. Too Many Claims

Whether you’ve faced storm damage or a cracked windshield, filing too many claims in a short period can add up. If you incur damage and need repairs performed on your car, consider working out a payment plan with the mechanic so that you can avoid inflated rates. An insurance agent can also help you determine if a specific service is worth filing a claim. 


If you want to keep your auto insurance rates to a minimum, consult with the team at First State Insurance Agency. With locations in Beatrice, David City, and Hickman, NE, this agency offers comprehensive protection you can rely on. They’ll help you understand your policy and handle any claims. To learn more about their services, visit them online or call (402) 979-7585.