Why Did My Car Insurance Go Up With USAA?

If you’re a USAA member and have noticed your car insurance premium has increased, you’re probably wondering why. Car insurance rates can go up for many reasons, even for long-time customers with no accidents or tickets. While rate hikes are often out of your control, understanding what causes them can help you minimize future increases.

As one of the largest car insurance providers in the United States USAA insures millions of members. They use sophisticated algorithms to set rates based on risk factors like your driving record location, age, gender, credit score, type of vehicle, usage patterns, and more. So when any of those variables change, your premium is likely to be recalculated and could increase as a result.

Here are some of the most common reasons USAA customers see their car insurance rates go up over time:

You’ve Had Recent Accidents, Violations, or Claims

Car insurance companies care most about your risk profile as a driver. So if you’ve recently been in an at-fault accident, received a ticket for a moving violation like speeding or reckless driving, or filed a claim for collision damage or theft, expect your rates to increase.

• Accidents where you’re determined to be at fault raise your insurer’s risk and typically result in premium hikes of 20-30% on average. Rate increases after accidents depend on severity, whether injuries/deaths occurred, and your previous driving history.

• Traffic violations like DUI, speeding, or failure to stop also indicate high risk. Expect a premium increase of 15-30% for these types of tickets. Minor violations may have less impact.

• Comprehensive or collision claims for damage caused by theft, vandalism, weather, or animal collisions will also drive your costs up. Expect a 10-15% increase after a single claim. Frequent claims result in higher hikes.

So if your USAA premium went up significantly, take a look at any recent negative marks on your driving record. Cleaning up your record over time can help offset rate hikes after accidents, tickets, or claims.

Your Credit Score Has Decreased

In most states car insurance companies use your credit-based insurance score as a factor when setting rates. If your credit score drops it could negatively impact your insurance score and cause your USAA premium to rise.

Things that damage your credit – like missed payments, credit card debt, loans in collections, or bankruptcy – make insurers view you as higher risk. Statistically, people with lower credit scores are more likely to file insurance claims compared to those with excellent credit.

For example, someone with a poor credit score may see a 60-80% increase in their car insurance rates compared to a driver with good credit. So if you’ve had any credit issues lately, it could translate to a higher premium at renewal time.

Improving your credit health can help minimize insurance rate hikes. Pay bills on time, lower revolving balances, dispute any errors on your credit report, and keep your credit utilization low. A score above 700 will earn you the best insurance rates.

You Moved to a New Location

The city where you garage your vehicle and primary drive it is a big factor in your insurance premium calculation. Insurance rates vary widely across different zip codes and regions based on local risk factors.

If you relocated to a new area with higher rates of accidents, vandalism, car theft or extreme weather, your premium will likely go up to match the increased risk profile of your new neighborhood. Even moving to a nearby zip code or county can impact your costs.

Likewise, if you moved from a rural to urban area, you may notice increased car insurance prices due to higher risk of accidents and claims in a busier, more congested city. Rate differences of 30% or more between low-risk and high-risk areas are common.

Changing garaging address with USAA prompts a full re-rating to match local area risk, which frequently results in higher premiums after a move.

You Drive More Miles Annually

Most car insurance companies ask for your estimated annual mileage when calculating your premium. This is because policyholders who drive more miles have a higher risk of being involved in an accident.

USAA may raise your rates at renewal if they find you are driving significantly more miles per year compared to the initial estimate you provided. The increase you see depends on by how much your mileage has changed.

For example, increasing your annual mileage from 5,000 miles to 20,000 miles may result in a premium hike of 50% or more. Dramatic mileage increases indicate you spend a lot more time on the road exposed to potential accidents. Infrequent drivers receive lower rates.

Keeping your mileage close to your original estimate, or proactively updating USAA if your driving habits change, can help avoid surprise rate increases at renewal time.

You Had a Gap in Auto Insurance Coverage

Maintaining continuous, uninterrupted car insurance is important to lock in the best rates. If you had a lapse in coverage for any reason, companies view you as a higher risk and will hit you with a premium increase.

Gaps in insurance history can happen if you cancelled your policy or it was cancelled by the insurer for non-payment. Coverage gaps may also occur if you switch carrier companies and the new policy starts a few days later than the old one ended.

Just a brief lapse of even 1 to 30 days can prompt rate hikes of 25-45% with USAA and other insurers. Lengthier gaps result in even higher increases upon re-applying for a policy. This applies both to existing customers with lapses and new customers with prior uncovered periods.

The best way to avoid increases is ensuring you maintain insurance at all times, with no gaps between policies when switching companies or replacing a vehicle. Continuous coverage shows insurers you are a responsible, low-risk customer.

You Added a Young Driver to Your Policy

When you add a driver to your policy – especially one who is under 25 – it can significantly increase your insurance costs. Teen and young drivers are statistically riskier behind the wheel due to lack of experience.

So USAA will recalculate your premium when you add your high-schooler, college student, or other young driver as a new policy member. Expect a big rate hike of 50-100% or more if you add an unmarried driver under age 25. In some cases, it may even double your current premium.

The younger the new driver, the larger the potential increase. For example, adding an 18-year-old could increase your premium twice as much as adding a 22-year-old. Driving courses and good student discounts can help offset the rate spike for teen members.

As new drivers gain experience over the years and move into lower risk age brackets, they become less costly to insure which brings your rates back down.

You Upgraded to a New Vehicle

When you change cars, your premium will be re-evaluated based on the new vehicle’s risk profile. Some cars have much higher insurance rates due to repair costs, accident rates, theft frequency and other factors that make them riskier for insurers.

So if you upgraded to a more expensive luxury car, high-powered sports car or sport utility vehicle, you’ll likely see an increase at renewal time. Replacing an old, paid-off sedan with a brand new auto loan also bumps your coverage needs and rates.

However, newer model years often have better safety features and discounts that can offset some increases. Also, trading a sports car for a minivan may actually score you a lower premium thanks to their safer family-friendly design. Always run your new vehicle info by USAA to see the insurance impact beforehand.

You Lowered Your Deductibles

Car insurance deductibles represent the portion of any claim expenses you pay out-of-pocket before insurance coverage kicks in. In general, the higher your deductibles, the lower your monthly premiums will be.

So if you opt to decrease your deductibles with USAA – say from $500 or $1000 down to $250 or $100 – you’ll almost certainly see an increase in your insurance rates as a trade-off.

For example, dropping collision and comprehensive deductibles from $500 to $100 could potentially increase your premium by 15-30%. The impact varies based on your policy limits, vehicle value, and other factors.

Just remember higher deductibles save you money on monthly payments, while lower deductibles reduce potential out-of-pocket costs later if you need to file a claim. Evaluate your budget to find the right balance.

You Purchased More Insurance Coverage

When you add new types of protection to your USAA auto policy or increase coverage limits on existing coverage, your premium is likely to rise. More coverage means more risk being assumed by the insurer, so they charge appropriately higher rates.

Boosting your liability limits, adding uninsured motorist coverage, incorporating rental reimbursement, etc. all translate to potential rate hikes. Even small coverage limit increases of just $10,000 can raise your premium a few percent typically.

On the other hand, removing coverage options you no longer need may create an opportunity to save on your monthly payments. Carefully review all your coverage at renewal time to ensure you aren’t overpaying