How much your insurance has increased in the past year?

[flyct]

Holly crap. I am crying here because my Lightning went from $400/6months to $500. Of course yours is a Lariat and mine is a Pro.

What is stacking UM?

UM is Uninsured Motorist. 25% of cars on the road in Florida are uninsured. This covers you when you are in an accident with an uninsured motorist. 3 years ago we got hit by an uninsured, suspended licensed, expired tag meth head. Our Nissan Leaf was totaled and my wife and I were transported via ambulance to the hospital. The car was totaled. State Farm was excellent. UM covered medical bills. Collision paid for car plus Stare farm was able to recover our deductible from the other driver.

The other drive a Hit and Ran. 2 good samaritans followed her, called 911, were able to block her in and a trooper arrested her 3 miles from the accident site.

We still maintain no accident discount.

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[flyct]

Holly crap. I am crying here because my Lightning went from $400/6months to $500. Of course yours is a Lariat and mine is a Pro.

What is stacking UM?

By the way. My premiums are 2x what they were 3 years ago. State Farm rates in Florida increased exponentially in the last few years.

 

[Slick68]

I’m also a Maryland resident that insures through GEICO. We only have my ‘22 ER and my wife’s ‘20 RAV4. 10% increase in car insurance. My ‘68 Mustang is through Haggerty’s and haven’t checked to see if that went up.

 

[Maxx]

I’m also a Maryland resident that insures through GEICO. We only have my ‘22 ER and my wife’s ‘20 RAV4. 10% increase in car insurance. My ‘68 Mustang is through Haggerty’s and haven’t checked to see if that went up.

10% in 6 months or a year? I got 25% increase in a year but in two increases.

 

[shutterbug]

Do you know why there is corruption in Government? Because of the size and influence of private industry. Just follow the money. The whole point of it is less control so they can screw over the consumer freely. We don't need less government, we just need better government.

Look around the world. Everywhere, government means corruption. That includes countries where the is no private industry. Name one thing that government had put it's grabby fingers into that actually got better as the result. I understand the need for government in some things, but the less the better.

I won't harp on this case too much because I really don't know the numbers insurance companies are working with and I have no doubt the cost of the claims has gone up. Just don't know how much. So I stop going off track on this and let folks just share their insurance stories.

All you have to do is look it up. For example, State Farm:
https://newsroom.statefarm.com/2023-financial-results/

Auto – The State Farm auto insurance business represented 64 percent of the P-C companies’ combined net written premium. Earned premium was $56.1 billion. Incurred claims and loss adjustment expenses were $53.4 billion and all other underwriting expenses totaled $12.4 billion. The underwriting loss was $9.7 billion. ​

Do you think $9.7B loss is too much profit?

 

[Slick68]

10% in 6 months or a year? I got 25% increase in a year but in two increases.

10% based on my policy. I make six payment over one year, with the first three being the same. We’ll see how my next three go but my recent email showed the same amounts/month.
Needless to say, Maryland is still an expensive car insurance state and I’m going to start shopping. My wife’s driving record isn’t as good as mine which may account for my higher rates (I haven’t had a speeding ticket (got caught) since ‘91 nor filed a damage claim on any vehicles. My wife? Well, she used to drive jeeps and those things are deer magnets

 

[hturnerfamily]

as an insurance agency owner in Georgia, I've seen premium/rating increase quite a bit for most all my customers, and most of those are 'preferred' customers, married, homeowners, multiple vehicles, good driving records, etc., but the 'cost of repairs and replacement' is the main culprit, not the customers.

we are buying more and more expensive and technology-infused vehicles that require MUCH more labor and expertise when it comes to repairs, for sure. I, personally, never would have thought that in the last 24 months I would have purchase a brand new KIA Sorento SX Prestige PHEV, sold a Ford Focus, sold two Nissan Leafs, purchased a brand new F150 LIGHTNING EV, purchased two used, but newly battery-replaced Certified Chevy Bolts, and now a brand new '24 KIA EV9.... crazy times, and yes, I don't expect my own insurance to be 'cheap', but at the same time, I'm certainly paying at least double what I was just a few years ago. All that being said, though, I also am driving MUCH MUCH newer and MUCH MUCH more expensive vehicles, and ALL with FULL COVERAGE, which is totally OPPOSITE of just a few years ago, where LIABILITY ONLY was the average coverage.

Auto Insurance rates are NOT just about the driver/owner/vehicle, they are much MORE relative to the market, as a whole. The average cost of ANY new vehicle is very high compared to only a short time ago, and the average 'used vehicle' purchase price is much higher, as well. Covid's shortage of parts and manufacturing drove up prices dramatically while at the same time many of us received Covid 'money', which just added to the amount of money we all had to 'spend' on new vehicles, at the very time they are the most expensive.

With some of us paying upwards of $100,000 for a 'truck', it all comes together as a time when, while we can complain about 'pricing', we are also asking an insurance company to 'give' us back what we had when a total loss occurs, whether our fault or not. That's a LOT to ask.

 

[hturnerfamily]

I am also seeing a new condition for quoting HOME insurance - with companies really drilling down on risk aversion, and even denying quotes, all together. A simple low-cost claim years ago can hinder a quote. Companies have really applied pressure to us agents to 'not' comparative quote our customers between companies, but to simply 'sit still', for now, even if the current company has had a 20% increase in rating.
Regardless of whether current customer have had any claims, have had any changes, or have made any modifications, their rates may seem to have gone out of control, for no apparent reason.
We live and do business in a rural area, no where near any 'metro' area or any area where sudden 'building' pricing or land prices have increased. Yet, we get lumped into the same 'geographic' pricing/rate increases. Atlanta is NOT us. We are NOT Atlanta.

Companies now are also accessing risk by suddenly 'inspecting' homes that they have been insuring for YEARS. They are now sending our risk assessment FORMS that are required to be filled out and signed and returned by the homeowner, otherwise cancellation may occur. Crazy.

I've been in the business for over 30 years, and even through the financial issues of 2008/2009, and have never seen this type of 'clamping down' on current customers.

I have had my own issues with my own home, with my OWN Insurance Companies: They either will NOT quote me, or will deny to INSURE me - all because of a single 'small' $400 claim from several years ago, quite forgettable, and only in reference to a cracked iPhone screen that they reimbursed my to have repaired. Believe it or not.... and, to add salt to an open wound, this was a SEPARATE premium for a SEPARATE set of 'personal property' SPECIFIC coverage. Really??
Every company who now runs reports see a 'claim', but with no specific explanation, OR PAYMENT AMOUNT, so they just lump it in with any other type of 'claim' that they then use to access the risk and DENY even a quote.
Sad.

Several years ago, these same companies were happy to accept ANY home quote and issue a policy to almost anyone 'breathing'... it was easy. Now, no, it is just the opposite.

 

[Lightning&Bolt]

Just a sign of the times.

Great overview of the issue

 

[Bills R Electric]

It is not a conspiracy.

Insurance Companies have to raise rates when the COST of the claims go up. Partly due to inflation, partly due to a higher # of claims occurring, and we don't have a lot of options. Switching insurance companies may not yield a lower premium.

 

[Lytning]

Then delegate. Find an independent insurance agent that will do the shopping for you. I'm lucky that my neighbor is in that business, but he just makes his money from commissions the insurance companies pay him, so even if we weren't friends it's still a "free" service for you. He's saved me tons of money and automatically re-shops for me once a year to see if there are any more savings he can find me.

Over 3 periods of 3 years each with different big name national insurance companies, I obtained a 30% annual savings by changing companies, often from one big company to another.

I am convinced I get the best rate when initially signing on, and then rates increase each year after. Loyalty costs the customer money in insurance, and the insurance companies surely do not reciprocate any loyalty the customers show them. The more you see the big companies on TV, the more millions of their revenue they are spending on TV ads and not customer claims.

I also now use an independent agent. He moved from a big regional company and I followed him. My independent agent reviews my insurance coverage and provider each year. I often change companies each year, and almost always to the same company he is insuring his own family with.

 

[Ventorum94]

I have had no accidents or tickets but in the past year my insurance has increased by 25% for cars with depreciated value in that period. When I ask my insurance company if they are collecting personal data on me from third party, they say no, it just costs more to deal with claims. I live in Maryland and I understand circumstances are different in different areas and for different people but I am still curious what has been your experience in the past year?

The cost of insurance has very little to do with the value of your truck, or something that might happen to your truck- it’s all about the cost, and risk, of liability for injuries you cause to someone else with your truck.

 

[Ventorum94]

as an insurance agency owner in Georgia, I've seen premium/rating increase quite a bit for most all my customers, and most of those are 'preferred' customers, married, homeowners, multiple vehicles, good driving records, etc., but the 'cost of repairs and replacement' is the main culprit, not the customers.

we are buying more and more expensive and technology-infused vehicles that require MUCH more labor and expertise when it comes to repairs, for sure. I, personally, never would have thought that in the last 24 months I would have purchase a brand new KIA Sorento SX Prestige PHEV, sold a Ford Focus, sold two Nissan Leafs, purchased a brand new F150 LIGHTNING EV, purchased two used, but newly battery-replaced Certified Chevy Bolts, and now a brand new '24 KIA EV9.... crazy times, and yes, I don't expect my own insurance to be 'cheap', but at the same time, I'm certainly paying at least double what I was just a few years ago. All that being said, though, I also am driving MUCH MUCH newer and MUCH MUCH more expensive vehicles, and ALL with FULL COVERAGE, which is totally OPPOSITE of just a few years ago, where LIABILITY ONLY was the average coverage.

Auto Insurance rates are NOT just about the driver/owner/vehicle, they are much MORE relative to the market, as a whole. The average cost of ANY new vehicle is very high compared to only a short time ago, and the average 'used vehicle' purchase price is much higher, as well. Covid's shortage of parts and manufacturing drove up prices dramatically while at the same time many of us received Covid 'money', which just added to the amount of money we all had to 'spend' on new vehicles, at the very time they are the most expensive.

With some of us paying upwards of $100,000 for a 'truck', it all comes together as a time when, while we can complain about 'pricing', we are also asking an insurance company to 'give' us back what we had when a total loss occurs, whether our fault or not. That's a LOT to ask.

The cost of insurance has very little to do with the value of your truck, or something that might happen to your truck- it’s all about the cost, and risk, of liability for injuries you cause to someone else with your truck.

 

[RickLightning]

This exists. Mutual insurance companies are owned by the policy holders and profits are returned via dividends or (more likely) lower premiums.

I use Auto Owners for all of my insurance needs. It's a mutual company, I have a local agent I can call for questions and near instant quotes, and they have been super helpful when I've had claims which has been often.

Often enough that I'm ahead in the insurance bet. All but one claim have been acts of God or acts of other bad drivers (deer, hail, hail, ran red light). My insurance is the same or less than my buddies who have national brand insurance with no local agent.

All that said, laws are different in different states. In Michigan, where I live, auto insurance is very expensive due to required medical liability coverage (Google it if you are interested, it's boring). I'm happy with Auto Owners. They don't operate in every state but there must be mutual companies that do.

Correct. My grandfather was an AMICA customer for over 50 years when I graduated college, and told me about them. Back then a policy holder had to recommend you. AMICA, USAA, and Erie Insurance were the best.

I have been with AMICA for 43 years. Every policy pays a dividend (or you can get a non-dividend policy but the net cost is higher). % used to vary between Auto, Home, etc., now all pay back 20%. And, in some states, you get a discount for preparing Auto (but not Home).

They have never denied a claim. They have never fought a a claim. They have never denied a "but that cost is $200, you gave me $125".

They are not anywhere near the cheapest. But they are among the best.

Just got a new roof from hail damage last June. They paid around $32,000. I was able to put on impact resistant shingles for that amount. Had a water leak in a cottage we inherited. They paid around $80,000. Have coverage for technology. Got new phone, new tablet, from breakage.

Have to watch no more than 2 claims per policy within 3 years. 3rd claim may mean they drop you despite longevity.

Michigan is highest auto cost in country. Mach-E and Lightning cost $3,500 a year (after dividend). Auto now is 6 months so they can update costs twice a year. Homeowners is $4k. $3M liability umbrella is $450.

Each year costs go up. Lately a lot.

 

[hturnerfamily]

LIABILITY is the only coverage line associated with the 'cost', physical damages or medical costs, your vehicle may inflict on others, and that line may or may not be the only line that has had an increase in your rates..

COMP and COLLISION are the coverage lines associated with the value of your OWN vehicle, and, again, that line may have it's own increase, depending on the insurer's need to 'recoup' costs, etc.

UM is relatively inexpensive, but, again, is based on the value of your OWN vehicle, a coverage line that protects YOU against at-fault accidents or damages from others either WITHOUT insurance, or without ENOUGH insurance coverage..


When people 'complain' about insurance rates/premiums, they rarely disclose ALL the facts about their insurer's rates... it is very helpful to say 'WHAT' line of coverage changed. Many of my own customers tend to 'underestimate' their own participation in why rates/premiums for them have changed. It's easy to 'forget' a traffic violation/speeding ticket, etc., sometimes even for another family member, when the insurance rate change doesn't happen for sometimes 18-24 months in the future. Rates don't change instantaneously, they change when the insurer has been notified AND it's within the next 'renewal' period of the policy. For instance, if a ticket happens right before the next renewal calculation for the company, which might be 90-120 days before the actual RENEWAL is formulated and sent to the customer, the effect of a ticket might not actually come to fruition for 14-15 months in the future, if the customer has a 'Annually Renewable' policy.
I've seen just recently that a major company, who has always had Annually Renewable Auto Insurance policies change their maximum renewal to only 6 Months. This is due to them wanting to 'see' these changes, tickets, and renewable actions much QUICKER than previously.

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