1)In many states, regulators (incumbent office bearers) prefer to stay on the sidelines after having deregulated the auto prices. Since, they keep their hands out of the fire so the insurance companies get a freehand to increase the rates as per their desires. Thus, states where regulators still keep a check on the companies, insurance rates are lower.

2)Although, due to rise in prices of oil and gas there has been significant drop in the average number of miles an American drives. Still, the prices of auto insurance have increased because of the general increment in the repair costs of a damaged car. The prices of all raw materials such as steel, copper, aluminum, plastic, paint and other commodities have also inflated, leading to this grim situation.

3) The overall inflation spread into economy has been fuelling the rise in auto insurance rates. The clouds of uncertainty that are still hovering on the economy make it more difficult for the insurance companies to project the average or expected rise in the claims costs.

4) Another reason that leads to rise in auto insurance costs is the lagging data of the most insurance providers. Even though every insurance company does keep a track of the number of accidents and claims being filed. Still, there data lags months behind the actual real time situation as the claims generally take more than a few weeks to settle.

5) The cost of medical services has gone over the sky in America during the last decade. Medical cover is integral to auto insurance and every year there are millions of people, who file for compensation of medical expenses incurred due to an accident. Thus, huge medical bills and loopholes in the law that allow many dubious treatments to be conducted are some good reasons to be blamed.

6) In many states, the rise of auto insurance costs has been because of the increased number of cases related to abuse of law and fraud. The fraudsters hoax it to be compensated for something that never happened.

7) The sub-prime crisis did some serious damage to the credit score of many Americans and it is not a hidden fact that auto insurance costs more for a driver whose creditworthiness is on the lower side.

8 ) Every year more than 2 million accidents happen on the American roads leaving a large number of drivers with tinted driving records. Thus, drivers who ever were involved in an accident will always be paying more for auto insurance.

9) Occupation of a person is another considerate factor that can lead to higher premiums. If you are in any business or job that exposes you to the risks of on-road accidents, then rest assure you are in for a high cost auto insurance.

10) Last reason is related to the ecstasy of many people. By ecstasy, I mean to say that off late there has been an alarming rise in the number of accidents caused due to negligent drunken drivers. Many youngsters and even large number of middle age people have also been booked under law for driving either on high or drunk. They in their negligence crash into some other automobile or object and kill many innocent people. This is one reason why for young people auto insurance always costs more than those in middle age.
By now, you must have got an idea of the common reasons and facts that actually push up the Auto Insurance rates, even when they must be going down.