Help prevent your auto insurance rate from rising
Updated June 16, 2026 . AmFam Team
Have you noticed your car insurance premium went up and wondered why? We get it — no one wants an unexpected rate increase. At American Family Insurance, we’re here to help you understand how your auto insurance premium is determined so you can take steps to keep your rate steady at renewal time.
[Music playing]
On screen: Animation of a vehicle on a residential road with houses in the background, transitioning to an animation detailing the fundamentals of insurance using stacks of money in a container.
Narrator: Wondering how home and auto insurance works? Well it all starts with your premium.
When you pay your premium, it goes into a bucket of money that holds the premium of everyone who is insured by the insurance company. So, when a customer needs to file a claim, your insurance company will use the funds in the bucket to help cover costs for things like auto and home repairs.
And when there are lots of claims, you might see an increase in your premium because the insurance company needs to cover all of the claims being filed.
Looking for ways to save on your insurance? Consider bundling your auto and home insurance together, paying your bill in full and taking advantage of the available discounts.
At American Family Insurance, we do our best to keep insurance costs low while still providing dependable coverage and excellent service.
Connect with an agent to get the protection and support you need.
Why your rate might rise and what you can do
There are a number of reasons why your insurance rate might increase. While some factors are out of your control, there are several proactive steps you can take to help keep your premium down:
Stay claim-free. Filing a claim for an at-fault accident may cause your insurance company to view you as a higher risk, which can lead to a rate increase. The amount depends on the severity of the accident and your policy details.
Drive safely. Speeding tickets don’t end with paying a fine. They can significantly increase your premium, especially if you get more than one. Safe driving helps you avoid those extra costs.
Pay on time. Missing payments can lead to higher rates. While you’ll usually get a reminder and a warning, repeated late payments can result in noticeable increases.
Enrolling in AutoPay with American Family makes it easy to stay on track — and you may even qualify for a discount for signing up!
Other factors. Changes like getting a new job, driving more miles each year, or shifts in your credit score can also affect your insurance rate.
Ways to lower your car insurance rate
Remember, insurance is meant to give you peace of mind, and no one wants to pay more than necessary. Here are some ways you can proactively lower your car insurance premium
- Bundle your policies. At American Family, combining your home and auto insurance can lead to significant savings.*
- Add safety features. Vehicles equipped with features like airbags or dashboard cameras may qualify for discounts.
- Enroll in payment discount options. Programs like AutoPay and Paperless Billing from American Family may simplify your billing and save you money.
- Explore available discounts. Ask your agent about any discounts you are eligible for.
Connect with an American Family Insurance agent who will help you build a policy with coverage and discounts tailored to your needs.
This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.
This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.
*Discount and savings amounts and product eligibility will vary by state, property type, policy form and company underwriting the auto and/or homeowners policy. Discounts may not apply to all coverages on an auto or property policy. Some restrictions may apply.
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