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Why Did the Rate on my 2016 Vehicle Suddenly Go Up?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 11/30/2017

Q: Last year I added a new 2016 vehicle to my car insurance policy and now my policy is renewing and my rate is going up on just that vehicle. I haven’t had any car accidents or claims and I have 2 other vehicles on my policy, why is the rate going up for just that car?

A: When your car insurance company added your new vehicle last year they most likely had to override the VIN number because the vehicle was so new it wasn’t in their system yet. This means that your new vehicle was rated on just it’s value and some of its features, both of which they would have had to manually enter. Now that the VIN is in their system they have all of the correct vehicle information to be able to place an accurate rate on the vehicle.

It also means that enough time has passed to collect some data on the vehicle’s road and claim history. Information like:

  • The driving habits and violation frequency of people that usually drive that car.
  • How often does a car like this get into a car accident.
  • How much damage can this vehicle do to another vehicle.
  • How much or how little damage does this vehicle sustain during an accident.
  • How safe are the occupants inside the vehicle during an accident.
  • How expensive is it to repair the damages to this vehicle.

This information also affects the rate of your 2016 vehicle and you can expect that as more information comes in over the next few years that your rate will keep being adjusted either up or down.

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Michele Wilmonen

Michele’s first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she’s earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

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