I was with State Farm. Originally things were great. I was on autopay and should have been paying more attention. My rate went up almost 70% in the course of 2 years. No accidents, no tickets, and I barely drive. I switched to Progressive when I noticed. Then after a year my rate went up with them over 60%. I never changed what was covered. Again, no accidents or tickets or claims or anything. Why does this keep happening? I get things have gotten more expensive, but I’m being charged almost double for no sound reason I can think of. It’s crazy.
My auto insurance rates have gone up over 50% (2 different companies) in the last 4 years.
byu/Significant-Day1749 inInsurance
Posted by Significant-Day1749
12 Comments
This keeps happening because the cost of everything has gone up; and *ceteris paribus* that alone will increase premium.
The fact that people are oddly driving *worse* these days *and* the prevalence of PI attorneys everywhere milking the system vaults it on the other end of the equation.
Look at the prices of vehicles, Repairs, and medical costs. They have all gone way up in prices and insurance has to pay for them.
With Trump and his tariffs expect even more next renewal.
Similar experience with State Farm in CA. My rates doubled over the past 3 years with no changes outside of state-approved rate hikes. $500 per month and I drive less than 5k miles per year on a vehicle with a replacement value of $35k.
Have you moved, or had people move in with you?
Also a potential change might be your credit, if you’ve fallen on hard times and you credit has tanked, that can also raise your premiums.
Those are just a few quick things off the top of my head. There’s many other factors that can be changing in the background.
Personally, I’d call an independent agent and ask them to run a few quotes for you to see if another carrier might be a better fit for you.
The cost of medical bills is up
The cost of parts, labor and materials is up
Every new car has cameras and computers
Catastrophic weather events are increasing
Gee, why could insurance rates be increasing? 🤔
Insurance is not just about you. It’s a system we all pay into.
Unfortunately, it has been completely corrupted. Someone gets into a accident and you’d think that they won the lotto. Attorneys have gotten very good at milking the system.
Also, supply chain issues caused by covid never completely un-fucked itself. Throw in trump tariffs and the rampant inflationary economy, repairs are extremely expensive.
Insurance companies have to charge us all higher premiums or there would be no insurance… remember, you are not just paying for you, you are paying for everyone else as well. That’s the concept of insurance… we all pay into the pot together.
I sell insurance and my premium also goes up. There’s no avoiding it, just mitigating the damages that will eventually come.
Majority will have rate increases.
With all the technology and sensors cars have nowadays, insurance companies are more likely to declare them totaled, which also drives up the prices of premiums. It sucks!!
There are many local factors that go into insurance premiums. I’m insured by State Farm and I’ve seen 6% decreases on my auto policies the last two years (same vehicles for the last 3), and I actually pay about the same that I did 7 years ago with higher limits now.
Progressive sometimes offers a new customer discount that’s only valid for the first term, so your rate may have been artificially low and this is closer to your real rate.
That said the cost of doing business has gone up. Inflation and tariffs have hit car parts. Add to that modern cars have more sensors and electronics than they used to, so they need more parts and calibration labor than they used to.
Medical costs have gone up as well, so bodily injury payouts have gone up. The money for those lawyers on the billboards are coming in large part from insurance payouts.
Keep in mind rates are state regulated, so there’s a delay between when inflation hits and when that translates to rate increases.
The only real option is to shop around. You may find something cheaper, but there’s no guarantee you will
What kind of car and where do you live?
This ain’t just you-car insurance in America has been going through the roof for four years straight,Even with a clean record,low miles,and same coverage,they still crank up your premiums’cause the whole industry’s your premiums’cause the whole industy’s raising prices,lf you think this is outrageous or just liain unfair,hit up your state insurance regulator and file a complaint.