Car Insurance Premiums

[Maragos]

Recently got a renewal auto insurance policy. It Went up 2k per year with no accidents or claims in my driving record. I called to get a reason why. They blamed expensive car parts and medical smh. Just curious. I know it falls into many factors, car type, age, accidents, tickets, location. Just curious what everyone’s paying annually.

[huncho]

i see you're from nyc. do you park outside?

nyc insurance is ridiculously expensive to begin with but now there are people trying to break into cars every night in every neighborhood so there's a lot more risk i guess. factor in the higher crime rate and everything else going on here right now and an increase does make sense, although 2k per year seems a lot. even watch insurance here is overpriced because of the way everything is situated in the 5 boroughs where million dollar houses can be a 10 min walk from the projects

[scarlet knight]

NYC! High crime rate, lotsa accidents.

Get bids from other insurers. Keep in mind that some companies will give you a lowball offer in year one to get your business, then hit you hard in year two and hope you stay due to inertia.

[espanol]

Originally Posted by scarlet knight

NYC! High crime rate, lotsa accidents.

Get bids from other insurers. Keep in mind that some companies will give you a lowball offer in year one to get your business, then hit you hard in year two and hope you stay due to inertia.

Bingo, had this happen with Geico coverage. Big jump year two for no apparent reason, then a slow creep from 3-4. All the while, no traffic violations/claims. Got out after that last year.

[beshannon]

Originally Posted by Maragos

Recently got a renewal auto insurance policy. It Went up 2k per year with no accidents or claims in my driving record. I called to get a reason why. They blamed expensive car parts and medical smh. Just curious. I know it falls into many factors, car type, age, accidents, tickets, location. Just curious what everyone’s paying annually.

It also includes location, income, credit, deductible etc.

Also the never ending commercials all promising lower rates are simply using loss leader promotions and will raise your prices later on.

Start shopping

[rick lee]

I don't get the "part are more expensive now" excuse when it's the same car I had for years at lower premiums. GEICO just hiked my bike insurance up $150/yr. Bike is still the 2015 one I've had for five yrs, never a claim or ticket. I know they're not gonna negotiate it back down, so I'll shop and find a better deal next week.

[Tricolore66]

Everything is going up. Health insurance for my dog went up 40% this month.

[macrowatch]

I've never rotated insurance companies as much as this year. Commercial, residential, etc. Lots of companies jacking up prices, and lots of companies trying to get new business. I think everyone's risk pool has just gone out of whack with all of the various big loss events around the world.

[brandrea]

Rates are silly expensive here as well.

We are over insured as a society IMHO, (no offense to anyone in the insurance community here).

[SDGT3]

Originally Posted by scarlet knight

NYC! High crime rate, lotsa accidents.

Get bids from other insurers. Keep in mind that some companies will give you a lowball offer in year one to get your business, then hit you hard in year two and hope you stay due to inertia.

This. The days of being with an insurance company for 25 years are over. They're hoping you're too lazy to shop around and just pay the increase. As others have said, I shop for auto, home, umbrella every year now. It's a pain, but what alternatives do we have?

[RustE]

Originally Posted by rick lee

I don't get the "part are more expensive now" excuse when it's the same car I had for years at lower premiums.
…

Global supply chain issues. The amount of time vehicles sit in shops waiting for parts is probably double or triple the typical duration a few years ago.

[HAPConst]

My boat is $7600 every 6 months (hope to have it sold soon). My rv is $2400 for the season ($1200 every 6). My truck is about $850 every 6 months and my wife’s car is $1400 every 6 months. My work truck is $1200 for the year. This is just Vehicles. Add in the houses and the rentals and I will begin to cry. I self insure a couple of properties as well. Insurance poor is a real thing.

[JasoninDenver]

A good friend was my Farmers agent for nearly 20 years until he retired in 2020. We were out to lunch last month and he told me he just switched to State Farm!

[RustE]

Originally Posted by SDGT3

…The days of being with an insurance company for 25 years are over…As others have said, I shop for auto, home, umbrella every year now…

The former is true for a lot of reasons, including new algorithms where an insurance company pays-out a large claim and then decline the next renewal. Hence one of the reasons why a lot of people recommend not listing watches on a homeowner’s policy.

There was something I came across a few months ago about the latter not being the best option. Insurance companies are looking for some (one-sided?) loyalty and might not offer the lowest rates if someone has a history of changing companies frequently. Like anything else, YMMV.

[MrGoat]

State Farm treats me right. Been with them for years and if a premium goes up it’s only like $30 every 6 months. I’ve got like 8 vehicles with them. They also insure my watch for <$10 a month.


Sent from my Apple privacy invasion product

[Maleg]

I’ve been bundling with Mahomey’s boys for about 40 years. Car, truck, and home total about $2500 in the outlying Chicago area.

The premiums are much higher in the city, but lower costs are one of of the reasons to choose a longer commute from the hinterlands over living in the city.

[albertf]

My auto premiums increased by 50% automatically. Luckily was able to find a lower premium through another company.

Unfortunately, wasn't able to find a better alternative for the rental home because that also jumped up 50% or so.

[Chewbacca]

$731 per year fleet policy for all my ground transport of 263 vehicles in the lower 48. But I’m rich and live in a wealthy zip code and have access to my Mayo physicians 24/7 and own dealerships for fun so I’m low risk.

[East Bay Rider]

We've had the same home and auto insurers for many years but every few years the local broker we use compares policies and recommends changes if appropriate. Last year she called all excited that she could save us $1,300/year by switching auto insurers but to qualify we'd also have to change the company with which we insure our house.
Sign us up!
Soon after dropping the old insurers the new house insurer contacted us that they need to send someone to evaluate the property and take photos. They then required that we have our wood stove professionally (re)inspected and several handrails installed all at our cost which happened to equal about 1/2 of our promised savings. Of course there was no going back to our previous insurer as we'd already dropped them. We just had to eat the hassle.

[dba]

This year's policy will be $3000 for a '20 Range Rover Sport, a '16 F-350, a 2000 Excursion and two horse trailers. We're with Triple A and I think it's time to shop around again. It's not due until mid June.

[Blansky]

Originally Posted by RustE

Global supply chain issues. The amount of time vehicles sit in shops waiting for parts is probably double or triple the typical duration a few years ago.

I'm not sure why that would raise the rates though.

We waited 9 months to get a part for a 2017 Lincoln MKX that came in last week. The insurance covered a rental car for 30 days. It sat in our driveway for 9 months.

When all is said and done we may get it back at around 10 -11 months after the accident.

Geico is paying out the same as if the body shop worked on it 9 months ago.

[THC]

Louisiana has the 3rd highest rates in the USA … sucks

[ameliaaria]

Insurance companies take into account various factors when determining rates, such as location, age of the driver, type of car, driving record, and coverage options. It's important for drivers to shop around and compare quotes from different insurance providers to find the best rate for their needs. As for watch insurance, the cost may be influenced by the value of the item being insured and the risk of theft or damage in the area.

[m j b]

Originally Posted by rick lee

I don't get the "part are more expensive now" excuse when it's the same car I had for years at lower premiums. GEICO just hiked my bike insurance up $150/yr. Bike is still the 2015 one I've had for five yrs, never a claim or ticket. I know they're not gonna negotiate it back down, so I'll shop and find a better deal next week.

So, I work for a mutual insurance company. Don't worry, I won't try to sell you anything, I'm corporate overhead (middle management in technology) but I do pay attention to the financial reports.

Granted, it's a bit skewed since I'm in NC and we have some of the worst coastal exposure in the nation for hurricanes. Which is why no insurance company will write homeowner's insurance for beach property, and they all work through a JUA.

Anywho... all of my comments should be taken as "general" observations from me, not official statements from any company, and I'm certainly not trying to defend the industry at all, since I have my own complaints as a consumer.

For the past several years, insurance companies have taken losses on homeowner's policies.

Those losses had to be made up with Auto and other lines.

You can't run a business losing money every year. Not for long.

With the pandemic, many insurers saw their auto losses go down as everyone stayed home, so they lowered rates and/or gave rebates. After the lockdowns, people started driving again, getting into accidents as before, but rates are still down.

Add to that, new cars are getting more expensive, used cars are going up in value, so the payouts got higher. Plus, parts are more expensive, repairs are taking longer, shop rates are going up. But rates charged by insurance companies need approvals to go up, so they're always lagging behind.

Plus salaries are going up, people are quitting in droves, and so the backroom (what they call underwriting expenses) costs have gone up and yet rates haven't kept up.

So, don't take these rate increases personally. Everyone is getting whacked.