Why does Insurance keep going up?

catchthecarp · Apr 24, 2018

If you want to feel pain have an under 25 unmarried male driver in your household with a 2 prior chargeable accidents in the past 5 years. My policy just renewed, it went down $21 or a whopping $1.75 a month.

itguy08 · Apr 24, 2018

I just shop around every 3-5 years when I think I'm paying too much. Bundle the home, RV, car, and umbrella insurance together and most will deal. But like clockwork it all goes up over that period of time. I walk when the difference is $1-200 less a year. Loyalty means next to nothing to them.

articrandom · Apr 24, 2018

24, No tickets/claims (other than one that was not my fault, had my car parked on the street and a guy hit it as he was backing up, his insurance paid for it).

Paying $100 for full coverage with $1000 deductibles and really good liability coverage

emcee1011 · Apr 24, 2018

Man, and I thought paying $180/month was great for a brand new 2018.. Must be overpriced New York.

highvoltage · Apr 24, 2018

The way i see it is. Regardless of the accidents by idiots I’m sure they didn’t have a clean record. Those of us with clean records and no insurance claims in 15 plus years of having car insurance i think it’s BS we pay more. It’s not the car it’s the driver. People are stupid in any car.

Bravo · Apr 24, 2018

Just to repeat what others have said - it's not the Mustang, and it's not you - rates are going up across the board nation wide.

I'm over 30, drive a 2.0T economy car, and have a perfect driving record. My rates went up $12/month for absolutely no reason.

I've shopped around, and other insurance companies can only match what I'm currently paying.

I expect rates to continue to rise over the next few years.

482supersnake · Apr 24, 2018

I remember back in the early 90's if you were under 25 and wanted to drive a 5.0 fox body Mustang it would cost you a little over $300 a month for insurance. Some insurance companies wouldn't even insure the car at all since it was considered a sports car.

itguy08 · Apr 24, 2018

482supersnake said:
I remember back in the early 90's if you were under 25 and wanted to drive a 5.0 fox body Mustang it would cost you a little over $300 a month for insurance. Some insurance companies wouldn't even insure the car at all since it was considered a sports car.

I remember that. In the mid 90's (as a 20-something in BFE) I wanted to upgrade my 1st car, an 86 LX with thew 2.3 and a 4 speed to an 86 GT (LOVED that style). Found a great one, low miles, 5 speed, T-Tops, etc. Was ready to buy it (the guy didn't take a deposit) and went to get insurance and it was something insane like $2k a year - more than the loan on the car! Needless to say I backed out of that deal.

Fast forward to 1998 when I finally upgraded that car to a brand new 1997 Cobra. My insurance was only $1200 a year for me, the fresh out of college 21 year old.

sed6 · Apr 24, 2018

My 2018 was $180/yr LESS than my 2013! Woohoo! That IS because of all the additional safety features my 2018 has. Winner winner chicken dinner!

sed6 · Apr 24, 2018

DarkestHour said:
It's all BS. Insurance companies are out there to make money. They're going to keep raising rates as long as we need cars.

Nah. Most insurance companies lose money on their home or auto insurance product, depending on the company, your state of residence and what year it is. Combined most insurance companies make about 6 cents on every dollar they take in, that's about a 6% profit, a very fair and reasonable profit for any industry. Insurance companies are regulated in each state by their Department of Insurance so you'll never see the gross (disgusting) 20-30% profits you saw with oil companies like Shell in years past.

Cobra Jet · Apr 25, 2018

Austinj427 said:
It's going up nationally.

Distracted drivers, more lawsuits, large weather events and more expensive to repair vehicles are not helping the premiums we are paying.

I've heard a few different numbers, one company said rates are going to increase until 2019 on a national level, another said 2025.

^^^ THIS is spot on and the very reason folks are seeing their rates jacked even when they have never made a claim, have good credit and have a perfect driving record.

As others have said, shop around, you’d be surprised at the large variances between Ins. Co. rate structures to insure the same vehicle with your existing OR better coverage.

Also to note if you work for a large Company, check your Employee Benefits or Discounts program, some big companies qualify for an instant 25% savings if they are hooked up or affiliated with Ins. Co.’s that are part of their program.

seth21w · Apr 25, 2018

Smartphones are the reason insurance is going up nationally across the board! Not just mustang anymore. It helps if you have good credit, own a home, and have a clean record. But still even so it goes up just about every 6 months.

Hack · Apr 25, 2018

As long as there is competition and the government is kept out of it the insurance companies will be kept in check as far as profit levels go. My assumption is that insurance cost goes up because the value of the car goes up and the cost to repair cars is high (body shop labor is expensive, paint is expensive, etc.).

One thing that seems like a scam to me is the price automakers charge for replacement parts. No way is the price of a fender, trunk or tail light for our cars tightly tied to the cost for the automaker to build the parts. They are charging a huge markup on those parts because it's easy profit for them. That cost charged by the automaker comes back to all of us indirectly through repair costs and then insurance costs.

I don't think it's wrong for Ford to make money on what they sell, but it would be nice to get a better deal on parts from them. I assume all the automakers are doing similar things. I remember pricing rims from GM when I was looking at a 1LE and they wanted crazy money for a set of 4 factory replacement rims.

Austinj427 · Apr 25, 2018

Hack said:
As long as there is competition and the government is kept out of it the insurance companies will be kept in check as far as profit levels go. My assumption is that insurance cost goes up because the value of the car goes up and the cost to repair cars is high (body shop labor is expensive, paint is expensive, etc.).

One thing that seems like a scam to me is the price automakers charge for replacement parts. No way is the price of a fender, trunk or tail light for our cars tightly tied to the cost for the automaker to build the parts. They are charging a huge markup on those parts because it's easy profit for them. That cost charged by the automaker comes back to all of us indirectly through repair costs and then insurance costs.

I don't think it's wrong for Ford to make money on what they sell, but it would be nice to get a better deal on parts from them. I assume all the automakers are doing similar things. I remember pricing rims from GM when I was looking at a 1LE and they wanted crazy money for a set of 4 factory replacement rims.

Ford is pretty reasonable with their pricing. There are a lot of other companies that hurt like hell with parts costs.

For shits and giggles I looked up a tranny for a GT350 and one for an M2. Both 6 speed manuals but the M2 trans is almost 2x as much.

Cats are almost 3x as much.

Hack · Apr 25, 2018

Austinj427 said:
Ford is pretty reasonable with their pricing. There are a lot of other companies that hurt like hell with parts costs.

For shits and giggles I looked up a tranny for a GT350 and one for an M2. Both 6 speed manuals but the M2 trans is almost 2x as much.

Cats are almost 3x as much.

BMW may do the same thing that I'm saying Ford does, and oversea shipping may factor in as well.

If you want to determine whether Ford is reasonable with their pricing when compared to actual production costs of the parts, compare the price of a replacement hood for a 2016 Mustang to the price of a hood for a 1967 Mustang (less than $200).

Obviously the volumes of 2016 hoods are much higher, so the cost to produce the 2016 hood should be a lot lower than that for a 1967 Mustang.

Why does Insurance keep going up?

catchthecarp

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itguy08

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articrandom

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emcee1011

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highvoltage

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Bravo

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482supersnake

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itguy08

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sed6

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sed6

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Cobra Jet

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seth21w

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Hack

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Austinj427

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Hack

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