Can an auto insurance company increase premiums on each renewal from points stemming from a previously insured vehicle?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can an auto insurance company increase premiums on each renewal from points stemming from a previously insured vehicle?

We had an insured Nissan Altima which was replaced by a new Nissan Sentra. The original monthly premium on the Sentra was $166.50. My daughter ran over a pothole and had to file a claim. The tire rim had to be replaced. When the policy was renewed in July the new premium was $223 due to an

Asked on December 28, 2018 under Insurance Law, Virginia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It's legal because at the end of the day, insurers can charge whatever they want, why-ever they want. Remember: they are not forced or required to sell insurance--they choose to be in the business of selling insurance, and can set their rates based on their perception of risk and to insure themselves a profit. They can raise your rates, and your option is whether to pay it or go elsewhere. So yes, they can raise again on the same points or incident.
You don't have to stay with this insurer: in my experience, changing insurers periodically results in lower rates, because you get your best rates when they want your business.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption