Why Do Auto Insurance Premiums Change?

Auto insurance premiums change for the same reasons that the price of other goods and services you buy change.
Insurance companies incur the same costs you do in buying goods and services, and these costs can ultimately affect your insurance premium. Costs affecting the ultimate price of auto insurance include:

• Medical costs to treat injuries
• Auto repair costs
• Costs to adjust claims
• Inflation
• Uninsured drivers (your policy pays when the other driver doesn't have an auto insurance policy if you purchase Uninsured Motorist coverage)

Although insurance companies can't directly control these costs, we regularly monitor them to see how they are affecting the costs of the claims we pay. As they change, auto premiums must be adjusted. These costs can affect your auto insurance premium whether or not you individually have had an accident or claim.
Changes you make to your auto insurance policy or coverage may also change the premiums. Adding or removing a driver, buying a new car, moving to a new location or changing how you use your car may influence the cost of your auto insurance.

Controlling Insurance Costs

What is Farmers doing to control car insurance costs?

• We have a network of reliable auto repair facilities for the highest quality repairs at competitive prices.
• We vigorously oppose frivolous lawsuits.
• We have an active Anti Fraud Unit.
• We offer a youth driving safety education program to all parents of young drivers.
• We actively support organizations devoted to auto safety, including funding anti-drunk driving efforts and those dedicated to improving youth driving safety.
• We offer Annual policies to keep your rates stable.
• We offer the Farmers Flex program to lock in your rates and forgive you for accidents.