Big insurance increase (State Farm)--anyone else?

[19gtMD]

I better take a look at my premiums. I didn't even take notice if it has or not..

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[Smunczen]

Putting my tin foil hat on for a second. I wonder if they will tax v8s out of existence in the long run. Through government fees and insurance.

We already have started going down that road. I predict we have folks protesting others that drive ICE vehicles especially large trucks and performance vehicles and older vehicles.

 

[Flimflamman]

I hate State Farm, but the wife insists we stay because we have some "guaranteed renewal" that is grandfathered into our policy. Fuckers charge way to much and we could save mo' money... but I digress. Wouldn't be surprised to see it increase again.

 

[FreePenguin]

edit.. I called around again some other places. everyone is same price for car, lowest 1 dollar, highest 13 dollar decrease. but also priced out home owner stuff, and everyone else is over 1000 dollars more, usaa is 1300, everyone is quoting me 2300. but got to do both, since multi policy discount.

USAA is stuck with me. other companies wouldn't even let me have some of the features I have now, tell me I can not have towing without comprehensive and their med pay capped at 10k instead of my 50k.

oh, progressive is the absolute worst to get quotes from, they literally asked every question known to man, even my gender, and what I want to be identified as. what the hell. that was easily a 45 minute call, everyone else was like 15 minutes.

dont like progressives auto quote system over phone.

though one guy did say, why are you shopping? I said because prices went up, he said it is industry wide, everyone went up to combat inflation. he said everyone is calling about same issue.

 

[StangTime]

though one guy did say, why are you shopping? I said because prices went up, he said it is industry wide, everyone went up to combat inflation. he said everyone is calling about same issue.

Insurance companies adjusting for inflation really means "we don't want any losses on our profit margin" and industry wide price hikes is basically a form of collusion.

 

[raidernixon]

...The only explanation is a cryptic note that about a "change in vehicle rating/group."

Mine went up 25% last year too.

It is important to note that regardless of who your carrier is, they are all essentially one in the same in that they all share loss data and resources with each other, along with sharing the same re-insurers. The only thing that differentiates the carriers, generally speaking, is how they interpret that shared data to Underwrite risk, decide what risk they want to sell, and set rates. It is all a game of cleverly "subsidizing" high risks with low risk and arriving at a blended premium rate that is sellable and should yield profit while ensuring solvency. Legalized gambling as I like to call it.

What we are seeing is likely a global Underwriting adjustment that has either:

A. Reclassified certain vehicles/locations/drivers or areas into a "statistically" higher risk group - these "risks" can be a combination of anything specific or broad. If a trend has emerged, it will be found and it will get exploited for better or worse.

B. Re-grouped certain vehicles/locations/drivers to offset poor performing risk pools (i.e. the blend of high risk to low risk has been adjusted, which can pass a premium increase to the low risks in that pool).

C. Most likely: A combination of the above and more

The convenient answer most Agencies will offer is that cars are more expensive to repair and replace now, hence the increase. While there is truth to that, the above discussion of risk pools is far more meaningful to a carrier.

Source: 15 years on the technical side of the commercial property insurance industry

 

[MAGS1]

I just renewed mine. Went up 2% from last year. Home and autos are bundled so I get a bit of a discount for that. My GT is higher than my wife’s SUV FWIW.

 

[jsp]

If you have another car which is a daily driver, look into classic/collector car insurance. I just got 2023 Mach 1 added to my collector policy...total annual premium for the Mach 1... $650/yr.

 

[twbthird]

My rates with American Family have been stable for some time. I'm not sure if they write insurance in all states, though. I avoid GEICO because I was hit by one of their insured a while back and they were absolute pricks to deal with, did not want to pay out and nickel-and-dimed everything on the claim.

 

[gxl1987]

Try AAA they are the lowest I have found from the bigger companies.
$650 / year full coverage 100/300
for a 23' Mach 1 in Chitown.

 

[Doolin64]

I work in the insurance industry. Strictly on the accounting side. I have no say in what happens with policies/price increases/claims handling, but I do understand how it all works.

For what it's worth, I'm paying the increase too and it sucks but there's no way around it. The insurance industry is heavily regulated and insurers can't just haphazardly raise rates to make a profit. Rate increases over that last few years are no where near the rate of inflation. Covid as we know, screwed everything up. It wasn't the premium give back. That year when no drove resulted in a lot of profit for the companies, so they gave it back. Right now it's the cost of the cars, costs of parts, the overall cost to repair. If the repair facility can't get a part to finish your repair, then you stay in a rental and the cost to repair goes up. It might seem insignificant but it adds up quickly, especially when you start to multiply it by the number of policyholders getting their car fixed. That's paid by the insurance company (assuming you have rental). That car you paid $45k for that you could have bought for $36k two years ago...that hurts the insurance company. The rates they charge are based on the old car values. They can't increase rates to compensate the change in the market values. So now, you go wreck your vehicle. Of course you want to be paid for what you owe. The insurance company has to pay. Not to mention everyone is zoned out driving these days. High as kit or staring at their phone. Accident frequency (how often people get in accident) and severity (cost to repair) continues to happen at uprecedented levels. I could go further and start explaining about the cost of reinsurance and how much that has increased. Believe it or not...insurance companies take out policies to cover themselves against major catastrophes such as the snow (in California), Wildfires, flooding, tornadoes, etc.

 

[FreePenguin]

I work in the insurance industry. Strictly on the accounting side. I have no say in what happens with policies/price increases/claims handling, but I do understand how it all works.

Not to mention everyone is zoned out driving these days. High as kit or staring at their phone. Accident frequency (how often people get in accident) and severity (cost to repair) continues to happen at uprecedented levels.

Been seeing every car going 100mph + on my daily commute on highway now that the weather is nice, gangs of them, every sports car, suv, and crappy coupe with body panels held on with duck tape, all are speeding and weaving around cars not giving them their free run. or just doing it because they are dumb.

I believe the wrecks being at all time high. a guy jumped infant of me awhile back, slammed breaks to get onto highway, he flew off. 10 minutes later I passed him, he rear ended a car. - yeah, wasnt surprised at all. problem is, one person does it, then everyone else wants to do it too with them.

 

[Silver Bullitt]

State Farm had some big losses in 2022 based on the little summary financial statement I received with my latest renewal. I have seven vehicles, home, and boat insured with them. I’ve seen increases in all my renewals over the last 12-18 months. I shopped four other major carriers and they were all higher than State Farm. American Family was actually about $1K per year less on my auto and boat policies, but were over $1,500 more on my homeowner’s policy. Inflation, particularly in used vehicle prices, is driving a lot of this in addition to claims increases coming out of COVID. It’s hard to unbundle because of the sizable discounts received by bundling home and auto. It is what it is. Sucks for sure, but not a lot of options. This is for metro KC in Missouri.

 

[AZlb5.0]

I had a 10% increase but that was for a ticket first one in years. We are covered through progressive. Very happy with coverage and services.

 

[MiamiGT350]

26% increase on my USAA renewal for no specified reason: No accidents, safe driver, no policy changes, etc. I spent just over an hour on the phone with a USAA specialist but there was nothing we could do. I was a customer for over 15 years.

Just moved my policies to AllState, starting May 4, which keeps the price down.

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