Is getting gouged on auto insurance SOP now?

I just looked at my premium notice and it is up 14% from the last six-month term.

I'm not sure what to make of it because our SUV was totaled (my fault) in the Fall of 2021. That was the first "at fault" claim I had in 45 years of driving.

The first renewal after that claim (May 2022), the premium went up 44%. I freaked out, but my agent told me that was to be expected because the insurance company had to shell out $$ to replace our SUV. She told me that future renewals would level off and (assuming no more claims) should start to decrease.

That has not happened.

After the 44% increase, the next premium (Nov. 2022) was up 3.6%; the premium after that (May 2023) was up 9.1%; and now will go up another 14%; that's a combined increase of 29%.

I've sent my agent an e-mail expressing my shock at this latest increase, but am wondering if this is the "new normal".

We have had NO accidents*, NO tickets, NO anything, for maybe 20 years. Absolutely clean records for my wife and me, nobody else (no other drivers) in the household. Premiums keep going up. I use an independent agent who is not "in bed" with any company, she shops the market for me and gets me the best deal available, and tells me that EVERY company is increasing rates.

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*One incident several years ago, where "Mercedes Girl" ran a red light and slammed into the side of my delivery truck, all captured on my dash camera. She was cited for traffic violation, I was not. Her insurance company paid my damages in full with no argument. I did not file a claim with my insurance carrier.

Thanks V-Tail, it provides some comfort knowing we're not alone.

Our situation is similar to yours. I can't remember the last time the wife a ticket; for me, it was about 15 years ago (for an illegal left turn).

We've had a couple of minor fender benders over the years that I paid for out-of-pocket to avoid making claims. When I totaled the SUV, it was our first "at fault" claim ever.

We have an independent agent as well. I'm pretty confident in her, but want her to know I am not happy with these premium increases.

Repair cost have gone up drastically. Little scuff on the rear bumper cover of my wife’s Explorer. A few years ago it would have been $500. I guessed it would be a $1,000. It was $1,094; I forgot about sales tax. Guy said we were lucky the sensor were ok because that could have doubled it.

And yes, my premiums are up a lot as well.

You're not alone. 6-month premium has gone up $220 in the last year.

Buckle up. With new vehicles and parts costing what they do, it's only going to get worse. Single lamp assemblies cost thousands now, same for windshields and other parts that were much cheaper just a couple years ago.

My truck is a 2016, and it's a Nissan Frontier so not a lot of expensive electronic wizardry to replace if there was an accident.

I spoke with my insurance agent when mine went up for renewal at the beginning of July. She said it was based on the rapidly rising cost of replacement parts. It turns out, I last renewed right before a rate increase and then there was another rate increase in the spring.

I consider all forms of insurance as a "legalized form of gambling". You pay the rates hoping to be taken care of if needed and the companies are hoping to do all they can to pay out little as possible.. Damed if you do and damed if you dont .................... drill sgt.

I always considered it legalized extortion.

I just checked and our homeowners and auto through State Farm, which have been pretty stable for a number of years now have gone up a small amount, but luckily nothing shocking.

My rates went up quite a bit this year as well. I've been a State Farm Customer for over 15 years, and have never had a claim. It kinda pissed me off, so I went shopping.

Turns out, it looks like this is the norm. I talked to an independent agent, and he said that inflation and the rising costs of vehicles and building materials have been driving rates through the roof everywhere. He quoted me with several other companies, and their rates were not much out of line with what I've been paying to State Farm.

As a consumer, and a long-time customer who has cost them nothing, it still kinda pisses me off. But I think it's more the reality of the world we live in. We're experiencing the long-reaching effects of shutting down production of everything for a year, and also driving the cost of vehicles up through federally mandated safety and emissions standards. I can't afford a new $80,000 Suburban, but I still have to carry enough coverage to replace some other guy's in the even that I hit it on the road .

Man, you don't even want to see what I'm paying on three cars, from 2008, 2014 and 2015.
Up up up UP!!

Also State Farm, also found same as above last time I went comparison shopping.

I have the perception that the actuaries associated with EVs are higher than those with ICE. But if the burdens are being spread evenly, that doesn't seem equitable. If this is true, the people with EVs should bear a higher burden; the burden shouldn't be spread evenly across EV and ICE owners.

If there are two cars, one ICE and one EV that cost the same (say, $40K) and they both get into the same accident with repair costs of $3K and $10K respectively (just for example), one would naturally assume the insurance costs for the EV would be higher. The premiums for the EV should then be higher as well. But I'm not convinced this is the case - my friends w/ EVs aren't paying more than I am.

ICE premiums are helping to subsidize the EVs it seems.

No claims nor accidents with current company of six years. Premium went up 22% this year.

Might also be related to the number of uninsured motorists driving in your area

Yeah, last week I spoke to my State Farm insurance agent, the same guy I've had for close to thirty years. He's a really nice, down to earth guy, always has time to speak with me, and he was about as pissed off as I was after I got my latest bill. In one year's time, the rate on the two automobiles I insure has gone up 50%. Really, it's disgusting.

My agent says that tort reform is needed nationwide.

Been with State Farm for 10+ years. Vehicle bundle, home insurance and life insurance. Received a letter last month saying 2 SUVs rates are going up $50 per car each month. No reason mentioned whatsoever.


Last time I asked for a quotes from AAA for same coverage for all vehicles, total monthly payment is $75 more each month.

quote:

Originally posted by oldbill123:
Might also be related to the number of uninsured motorists driving in your area

That will only get worse as premiums increase.

I guess some one has to pay for the sporting events and stadiums being sponsored by auto Insurance companies.

BTW, I'm with State Farm.

I added my 16 year old to my auto this year. I had been with USAA for 12+ years.

Lesson one that I found was that when you call to add someone, that automatically add them as assigned to whatever vehicle is the most expensive to insure. Once I switched him to the other vehicle the rate went down over $100/6 months.

It almost tripled my umbrella insurance rate.

I shopped around, probably 4 companies plus USAA plus two different brokers. Some had crap communication, which was an instant no for me. Some were just stupid high, or ignored my specifications for the quote.

The brokers both pointed me to SafeCo. One was very helpful and I wish her rates were the best, because she really knew her shit and was a good communicator.

State Farm was the overall best. I even called USAA and talked to an insurance guy and asked him if I was missing something, went line by line. Nope. Their shit was just too high. And the State Farm agent is local and was very personable. USAA is online or over the phone. I was tired of that crap.

I’ve shopped around every year for a while. None were better enough to make the switch worth it until this year. We will see how next year goes.