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According to a study done earlier this year, the largest increase in auto insurance in the last five years was in 2008 when it went up by 8 percent over the past year. Auto insurance had not increased this much since 2003. This increase has caused many people to drop their auto insurance because they couldn’t afford it with the worst hit states being Washington DC, Rhode Island, and Pennsylvania. This was during a time when the economy was getting worse and people were losing their jobs. Not having auto insurance puts a car owner in a dangerous position. It can cause you even more financial problems if you were to get into at accident that was your fault. You could lose your home, your savings, your IRA account, and much more if it was a serious accident causing property damage and bodily injuries.

The rise in Houston auto insurance premiums caused more stress for those people living in the states where the insurance premiums are the highest. Pennsylvania suffered the most with a 15 percent jump in their rates but some states did receive decreases in their premiums with Iowa getting the best deal.

The cost of automobile insurance premiums can increase without you realizing why its happening. You aren’t really given an explanation when it increases, they just mail you your renewal statement with the new prices and your new premium. You have to call your agent to get a breakdown as to why some portions of your coverage increased. It can be confusing especially if you didn’t get any tickets and weren’t involved in any accidents during the past period.

If you have had an accident, one or two tickets, or a DUI, you can count on your insurance premium increasing but you never know exactly when that will be. It all depends on when the insurance company finds out about the incident and it might not come to light until your next renewal comes up. The amount of the increase in your premium depends on the accident severity, your degree of fault, the type of ticket you get, and the amount of money the claim costs. If you were in a minor accident your insurance company may not increase your premium at all if you have an otherwise clean record with them.