The transparent answers to why insurance rates change.

person checking out insurance rates on the phone

Why we pay what we pay for insurance can be a confusing question. It’s part of why we’re reinventing insurance and trying to empower our customers to be in control of their price.

With HiRoad, you can see how your everyday driving affects your price through our app, and we reward you every month for the mindful choices you make on the road.

With any insurance company, there are various factors that can affect your price when you’re up for renewal. For HiRoad in Rhode Island, renewals are once a year; for other companies, it’s every six months. Wondering why insurance rates increase? Here are some of the reasons.



You had a ticket or an accident.

This is the obvious one. If you’ve had a traffic violation or an at-fault accident during your policy period, it’s likely your insurance bill will increase at your renewal time. Accidents and mistakes do happen (it’s why you have insurance!), but insurance companies have to account for this to make sure that, in “insurance speak,” they can accurately match your price to your probable risk based on past events.



The insurance company had more claims than usual.

This one is the tough one for good drivers to understand. Essentially, insurance is a bunch of people sharing money, so that if something happens to any one of them, they’re covered. Due to the unpredictable nature of natural disasters, car accidents, repair costs, and other events, sometimes you pay more into the pool than you get out, other times you take out more than you’ve put in.

The way rates work is ensuring that the money is there when you DO need it. Insurance companies have to increase rates overall when the past year has had more claims paid out than what customers paid in. For example, the increased amount of technology in cars has made parts and repair costs go up, so you may have seen your rate increase even if you didn’t have an accident.



The downer reality of fraud.

Unfortunately, there are cases where fraud happens. Fraud is things like lying about how badly your car got damaged, or faking an injury. This one is also a bummer. The result of this is similar to paying out more claims than the insurance company has collected in billings, and can lead to a price increase for everyone. A few bad apples in this case really spoil the barrel!


The good news about HiRoad and your mindful driving

At HiRoad, we believe in your best self. We believe that HiRoaders are people who make mindful choices, so we think this will be less common with our customers than in general.

We know price increases aren’t something anyone wants to see, especially when you’re a good driver! It’s possible your insurance rates increase at your renewal period, but you still have the chance to drive down your price every month based on your smart driving choices.


The good news with HiRoad is, you still have the ability to earn up to 50% off each month with your mindful driving.


The other good news is that there are also a number of factors that could make your insurance rates decrease when you renew:

  • How long you’ve been a customer. (Insurance companies appreciate loyalty.)
  • You being a year older. (This usually correlates with being a safer driver, and having your license for longer.)
  • Your car being a year older. (Your car being worth less = lower cost to insure.)
  • A surcharge rolling off the books (from a past claim).

We think transparency is an important part of reinventing insurance, so we hope this helps shed a little light. If you have questions on this or tips on how your monthly rewards can help keep your price low, reach out to our awesome insurance nerds at