Way OT - Auto insurance went up >16% this year

[OtayBW]

What.The.Frontdoor (as they say...)?

Been a good customer ~20 years with both homeowners and auto policy bundled. Perfect record. Never had such an increase this big. I talked to the company twice and they are at a loss to explain or identify any specific reason for the increase in premiums - apparently across the board. We've come to no resolution, so I will shop it out and it looks like it will be adios muchachos. :butt:

At this point, it just feels more like a bad faith way to do business than the actual dollar cost increase itself. Anyone else see anything like this?

Signed,
Unamicable.

[yinzerniner]

What.The.Frontdoor (as they say...)?

Been a good customer ~20 years with both homeowners and auto policy bundled. Perfect record. Never had such an increase this big. I talked to the company twice and they are at a loss to explain or identify any specific reason for the increase in premiums - apparently across the board. We've come to no resolution, so I will shop it out and it looks like it will be adios muchachos. :butt:

At this point, it just feels more like a bad faith way to do business than the actual dollar cost increase itself. Anyone else see anything like this?

Signed,
Unamicable.

The only reason I can think of at the moment is due to increased material costs due to the tariffs. Steel and aluminum were most drastically hit, and those are pretty big components of any accident fix.
https://www.insurancejournal.com/news/national/2018/07/19/495547.htm

[OtayBW]

The only reason I can think of at the moment is due to increased material costs due to the tariffs. Steel and aluminum were most drastically hit, and those are pretty big components of any accident fix.
https://www.insurancejournal.com/news/national/2018/07/19/495547.htm
Wow - that is interesting. I never would have thunk it, but seems possible. However, a hike of >16% in my rate still seems exhorbitant, based on a statement from your link: A coalition of auto insurance groups said in previously unreported comments that hiking tariffs on imported auto parts by 25 percent could increase costs by 2.7 percent, or $3.4 billion annually, for personal auto insurance premiums.
Good information, though. Thanks for the link!

[eddief]

I have not had an auto claim in more years than I can remember. Not sure about the Costco company's level of service but it was a good price. Maybe your company is subsidizing a trillion.5 Geico and Progressive commercials :).

[kramnnim]

Clark Howard says that insurance companies will raise the rates of loyal customers because they are less likely to look elsewhere.

[zap]

Just got the quote for our auto policy renewal last week. Rates went up a few bucks for 3 cars then down when I removed rental car reimbursement for our beater car.

[Ken Robb]

New cars with cameras in bumpers and other expensive features will cost a lot more to repair.

While the practice is illegal in CA. and maybe some other states some insurers will increase rates for some people just for more profit if they think those insured won't notice or won't change companies. I suppose if a customer doesn't question a few small increases his insurer might decide he is not price sensitive and go for a bigger bump in the future.

Some experts recommend shopping around every year and not being afraid to change companies if a better deal is available. OTOH Amica and USAA are among the highest rated for claims satisfaction so I wouldn't leave them for a second-rate insurer for just a few dollars.

[Ozz]

You didn't add a teenage son to your policy did you?:cool:

+1 on USAA...been a member almost 30 yrs...rate increases have been more or less reasonable and expected. Until son was added.....

[AngryScientist]

you should definitely shop around, you will almost certainly save yourself some money.

loyalty and partnership have to be a two way street. you have been a good loyal paying customer and how are you reciprocated? with a big rate increase and no logical explanation? not fair, you owe them no loyalty with that kind of treatment.

[Tickdoc]

I’ve switched twice over the last ten years.....once after having a roof replaced and watching my homeowners rise sharply ( farmers) and more recently after having a child turn 16 (State Farm).

I took my business elsewhere both times and am with aaa now. Couldn’t be happier with the switch as my rates are now back where they were and my coverage is basically the same.

[kppolich]

What.The.Frontdoor (as they say...)?

Been a good customer ~20 years with both homeowners and auto policy bundled. Perfect record. Never had such an increase this big. I talked to the company twice and they are at a loss to explain or identify any specific reason for the increase in premiums - apparently across the board. We've come to no resolution, so I will shop it out and it looks like it will be adios muchachos. :butt:

At this point, it just feels more like a bad faith way to do business than the actual dollar cost increase itself. Anyone else see anything like this?

Signed,
Unamicable.

I switched to Geico, built my only policy with better coverage and saved 20%

[ScottW]

Insurance companies all play the rate creep game but the percentages are more egregious on auto insurance than on homeowner's. If you don't shop around every 5 years at least, the likelihood that you're getting hosed is pretty high. I have an independent insurance agent do the searching for me, which removes most of the misery from the process.

[kookmyers]

Perhaps all our auto insurance rates are going up because everyone is driving while looking down?

[Blue Jays]

”...because everyone is driving while looking down?...”That is where the asphalt roadway is located! ;-)

[Llewellyn]

It's called the lazy tax. Always get new quotes every year for all your insurances - takes less than an hour on the internet these days

[Bici-Sonora]

Somebody has pay for all the wrecks caused by texting and social media. The self-driving cars can't come soon enough IMO.

[OtayBW]

Some experts recommend shopping around every year and not being afraid to change companies if a better deal is available. OTOH Amica and USAA are among the highest rated for claims satisfaction so I wouldn't leave them for a second-rate insurer for just a few dollars.Yep - it's Amica, and I agree with your sentiment. I have stuck with them for years precisely because I believe they do have among the best customer service in the biz. I never minded a modest creep, but a >16% out of the blue just really pissed me off. I will shop it and see...

Insurance companies all play the rate creep game but the percentages are more egregious on auto insurance than on homeowner's. If you don't shop around every 5 years at least, the likelihood that you're getting hosed is pretty high. I have an independent insurance do the searching for me, which removes most of the misery from the process.Creep I can accept. Throw me off the cliff, no....

Perhaps all our auto insurance rates are going up because everyone is driving while looking down?True dat. I drive 110 mi/day and see it all the time...

Thanks for all the tips and thoughts, y'all. I will shop it around and see what I come up with. Maybe Amica will budge when I cancel the two policies and ask for a pro-rated refund on my premium. If not, eff 'em!

[OtayBW]

Somebody has pay for all the wrecks caused by texting and social media. The self-driving cars can't come soon enough IMO.Um....:no:, not for me...

[Bici-Sonora]

Um....:no:, not for me... I won't be buying one, but I trust the technology more than my fellow distracted humans. I just want people to stop hitting me on my bike.

[jghall]

Sure a combination of things. Mother Nature certainly pays a part. Weather, whether hail storms, wildfires, etc. Obviously hurricanes. 2017 saw what, close to $300B in losses. Those in Nevada, Wisconsin, and South Dakota are also paying for those impacted.

As Ken mentions, every year or so one needs to shop around.

Just like cable, internet, etc., and all those "intro" types of offers. It's too easy to just stay the course. I'm as guilty as anybody. Same agent/company for 20+ years. Only to realize I could save close to $300 a month by doing a bit of due diligence.

[MikeD]

I switched to Geico, built my only policy with better coverage and saved 20%


I have Geico and they raised my rates, in spite of having a good driving record. I just looked at AAA and State Farm, but they were significantly more expensive so I'm sticking with Geico. I upped my collision deductible to $1000 and saved about $400/yr. I guess someone has to pay for all those uninsured motorists getting into accidents, at least in my state, where almost everything is uber expensive.

[cuwinbs]

Here in CA some of the reason rates went up is due to pot being legal.

[unterhausen]

when my dad was about my age, his insurance canceled his policy. Said his rate was too low because he was too good of a driver.

If the policy goes up this much, it seems like they might have some MBA in the back room that thinks the OP is due for a big claim and want to get rid of him. Usually the way of extracting more money is to raise rates too much but not so much that people will leave. Big increases are weird

[ChainNoise]

I always shop every 6 months and I usually end up switching. I have only had 1 ticket in my 15 years of driving (which was 12 years ago). Zero accidents. One claim for windshield replacement. I am NOT paying more!

[biker72]

I haven't had a claim or ticket in over 40 years. I ride my bike to work and do most errands on a bike. I do pay an age penalty for being over 75.

[GregL]

Just like cable, internet, etc., and all those "intro" types of offers. It's too easy to just stay the course. I'm as guilty as anybody. Same agent/company for 20+ years. Only to realize I could save close to $300 a month by doing a bit of due diligence.
Another useful tactic is to tell your existing service provider that you will not be renewing due to the rise in their prices. Often they will miraculously give you a new package that lowers your price. This has worked for me with insurance, internet, and even my mortgage.

Greg

[Gummee]

More and more companies are going the Progressive/Geico way and basing all pricing decisions on credit and other such non-automotive means

Good credit and a good driving record? Great rates
Bad credit and a good driving record? Ineligible

I feel for all y'all that aren't military. USAA has been good to me for the last 25+ years...

M

[zap]

The op might want to get a quote from Erie.

I just compared our renewal rate with last years bill. I was wrong, our Erie auto insurance will go down $11 (plus the other posted reduction) this year. No tickets or accidents in many years.

I'm amazed State Farm is still in business.

[jlwdm]

My independent insurance agent pointed out to me last year that one of the biggest factors is if a company is trying to increase its business in a state. There is no rhyme or reason to many rates. That is why you need to re-bid car insurance every year.

Last year I went with a company that was by far the lowest. This year with no change the rate went up by over 30%. So now I am with another company. Last year's rate was lower with my wife listed first on the policy even though I had a clean record and great credit. Don't try to figure out why rates change, just find the lowest rate.

Jeff

[Ken Robb]

More and more companies are going the Progressive/Geico way and basing all pricing decisions on credit and other such non-automotive means

Good credit and a good driving record? Great rates
Bad credit and a good driving record? Ineligible

I feel for all y'all that aren't military. USAA has been good to me for the last 25+ years...

M
In California it is illegal to use credit rating to price policies. Insurers can only use experience and driving record to set rates for individual drivers. Other states aren't so lucky.

[OtayBW]

Another useful tactic is to tell your existing service provider that you will not be renewing due to the rise in their prices. Often they will miraculously give you a new package that lowers your price. As I said in the original post, I have been on the phone with them (escalated) for over 20 minutes recently, telling then I will shop it out and take my bundled mortgage ins. with me: no miracle....

More and more companies are going the Progressive/Geico way and basing all pricing decisions on credit and other such non-automotive means

Good credit and a good driving record? Great rates
Bad credit and a good driving record? Ineligible
I don't know, I have credit scores >820, zero debt (except for mortgage), and good driving history: no help.

The op might want to get a quote from Erie.

I just compared our renewal rate with last years bill. I was wrong, our Erie auto insurance will go down $11 (plus the other posted reduction) this year. No tickets or accidents in many years. I will check into Erie. Thanks!

[drewskey]

Insurance is a funny product. Hard and and soft pricing for companies means diligent shopping on a 1 or 2 year basis.

So for the last few years I had Liberty Mutual for both home and auto. I shopped around when adding a new vehicle this past spring and found a MUCH lower auto rate available through Geico with lower deductibles.

At the same time, I also used them to get a new home owners policy. They don't cover homeowners but rather sell policies for others.

In this case, I got matched up to, you guessed it, Liberty Mutual.

So I have homeowners from the same company for $400 less per year with lower deductibles. Their internal person tried to convince me to not switch to Geico, but couldn't even match the rate Geico was quoting me for home owners, from themselves...

It's a strange industry.

[ChainNoise]

As I said in the original post, I have been on the phone with them (escalated) for over 20 minutes recently, telling then I will shop it out and take my bundled mortgage ins. with me: no miracle....

I don't know, I have credit scores >820, zero debt (except for mortgage), and good driving history: no help.

I will check into Erie. Thanks!

That's so ridiculous. Especially given credit score and zero debt.

[MikeD]

In California it is illegal to use credit rating to price policies. Insurers can only use experience and driving record to set rates for individual drivers. Other states aren't so lucky.


Are CA rates cheaper than other states? I'd be surprised if they were, because everything is expensive here.

[Ken Robb]

Are CA rates cheaper than other states? I'd be surprised if they were, because everything is expensive here.

I doubt that CA. rates are the lowest due to the density and the large number of unlicensed and/or uninsured motorists but insurers can't charge drivers higher premiums because they have poor credit scores. I would expect rates in rural areas with relatively few vehicles on the road to be cheaper based on the lower probability of collisions.

[el cheapo]

Insurance companies in the future will have fewer policy holders. Young people today drive way less and don't have the same desire to own a car. They want to use mass transit or Uber. The trend is to move to the cities and not the burbs. Decreased driving means decreased profits for insurance companies. Maybe that's a reason for the high increases in premiums. Get as much money as you can before a downturn.

[Polyglot]

I have been involved in over 100 car accident insurance case depositions as an unaffiliated participant. I have had the opportunity to speak to many many attorneys who specialize in such proceedings and they all say the same thing: a whole lifetime of year to year savings on insurance costs is almost always made up in one well-handled major accident case. So before you even consider the costs make sure that you choose a company with a very good customer service reputation.

[unterhausen]

Another useful tactic is to tell your existing service provider that you will not be renewing due to the rise in their prices. Often they will miraculously give you a new package that lowers your price. This has worked for me with insurance, internet, and even my mortgage.

Greg

I tried this with our mortgage and the person just laughed at me. Interest rates had gone way down. Moved everything from that bank after that. I was at comcast because one of the cable boxes died, and some guy was trying to hardball them into giving him a lower rate and they were having none of it. So this doesn't always work.

[BryanE]

Try living in Michigan

[zap]

Insurance companies in the future will have fewer policy holders. Young people today drive way less and don't have the same desire to own a car. They want to use mass transit or Uber. The trend is to move to the cities and not the burbs. Decreased driving means decreased profits for insurance companies. Maybe that's a reason for the high increases in premiums. Get as much money as you can before a downturn.

Maybe.

But a lot of young people are also moving to smaller metro area's with minimal mass transit.......and to the burbs for better schools.

[Gummee]

It's a strange industry.

You have NO idea!

M

[deechee]

Does anyone's insurance provider use apps to track their driving? I recently adjusted my policy and they asked me to try their app. It has a 1.8 on GooglePlay :eek: Supposedly it warns you about speeding and other stuff, but people complain its a battery hog and I'm more inclined to turning it off when I'm not driving and I have LBS turned off 99% of the time - so I'm not even sure I should bother turning on this app... (It's TD Insurance /Meloche Monnex)

I'm not surprised people leave their GPS on all the time, but tracking ALL my movements is super invasive.

[choke]

Are CA rates cheaper than other states? I'd be surprised if they were, because everything is expensive here.Not even close. When I moved to CA from WY my insurance on the car almost doubled and what they wanted for the motorcycle was so insane that I had to change it....and I still pay more for the lowest coverage than I did for full coverage with the lowest deductibles they would allow in WY. When I showed the insurance agent what I was paying in WY they were absolutely amazed and responded with "Welcome to CA".

[OtayBW]

I tried this with our mortgage and the person just laughed at me. Interest rates had gone way down. Moved everything from that bank after that. I was at comcast because one of the cable boxes died, and some guy was trying to hardball them into giving him a lower rate and they were having none of it. So this doesn't always work.
I find that 'shaming' is a surprisingly effective negotiating tool. I'll let you know how that goes.....:rolleyes: