Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Insurance rate increases
Old 09-08-2011, 07:51 AM   #1
Full time employment: Posting here.
 
Join Date: Mar 2005
Location: Punta Gorda, FL
Posts: 664
Insurance rate increases

I just got my new rates for my Homeowners policy and it's gone up 10%. I did some checking and it's gone up at least 10% the last 4 years. And of coarse my Health insurance is also increasing 10%, they actually acted like only a 10% increase was a good thing.

This is basically just a rant, but Insurance is my biggest expense and its hard to imagine continual 10% plus increases. I knew health insurance was a problem, and is much more expensive, but I didn't realize that homeowners insurance was going up at the same rate. I emailed my agent and I'm curious to see how he justifies to 10% a year increase in my homeowners.

Is everyone seeing these kind of increases? I'm now paying $1130 a month for my wife and I for health insurance. I'm 54, she is 50, we are on a group plan from her former employer.
__________________

__________________
dm is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-08-2011, 08:00 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,082
I don't have any advice for you on your health insurance but on your homeowners policy - shop around. When it comes to auto, RV or homeowners coverage, a common price strategy appears to be raise rates each year hoping inertia will prevent policy holders getting quotes from competitors.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 09-08-2011, 08:48 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
I shopped my P&C policies a few years back and saved some money.

I will probably shop my P&C policies again in a few years to see if I am overpaying.
__________________
chinaco is offline   Reply With Quote
Old 09-08-2011, 09:07 AM   #4
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 1,452
For homeowners insurance you might get a better rate if you combine your auto and homeowners with the same company. I have Progressive auto insurance and my auto insurance rates have actually gone down over the last 8 years. They are affiliated with Ameriprise homeowners insurance so I switched to them 2 years ago. Don't have much history to go by, my rate did go up 3.5% after the first year but I also increased the replacement value of my house.

For health insurance are you paying that kind of rate because of pre-existing conditions? If not and your health is good you should definitely look at a high deductible HSA plan. I'm 53 and my deductible is $3k, it cost me $167/month. My rate did go up about 10% this year.
__________________
zinger1457 is offline   Reply With Quote
Old 09-08-2011, 09:28 AM   #5
Full time employment: Posting here.
 
Join Date: Mar 2005
Location: Punta Gorda, FL
Posts: 664
I do have my homeowners and auto combined. I have Travelers currently. I guess its time to shop around some. Our health insurance is thru my wifes former employer. She has some pre-existing conditions, but I do not. Maybe I should check to see if she could stay on as a single and I get insurance elsewhere. Everyone on the plan pays that amount. She worked for the local school district.
__________________
dm is offline   Reply With Quote
Old 09-08-2011, 10:04 AM   #6
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
I hear you DM.

My homeowners went from $900 to $1150. I'm currently shopping around.
__________________
Aiming_4_55 is offline   Reply With Quote
Old 09-08-2011, 10:46 AM   #7
Recycles dryer sheets
 
Join Date: Aug 2009
Location: westerville
Posts: 242
Cant speak on the HC but on the Homeowners, Car, Boat and Umbrella the old company each year raised rates and I never really noticed until I started tracking expenses several years back. Its called rate Creep. When I shopped saved over 30% for better coverage moved to a broker that has several companies that they represent and thus shop for me. Just the Homeowners went from $800 to $520 same values deduct and other ryders.
__________________
Trawler is offline   Reply With Quote
Old 09-08-2011, 12:34 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,423
Our homeowners insurance went up 20% this year so I raised the deductible from $1000 to $2500. Probably should have had it at $2500 before now as we've learned not to make a claim unless you really need to.

We just got our Open Enrollment info for 2011 for the Health Insurance. It's a basic plan - $2000/each deductible for medical and $550/each deductible for prescriptions. It's part of DH's pension plan and we are glad to have it. The cost went up $57/month for the coverage for both of us. That stings a bit but it's better than any of the alternatives. Our son can also join our plan (new Obamacare rules for under age 26) for $40/month which he reimburses to us. The $57 increase is just for the coverage for DH and I.

The expense that has crept up the most has been on prescriptions. We both take losartan and the 90 day cost went very low when it first went generic in 2011. Since then the price changes every time we have to reorder and it's now doubled what it was at the low point. Still better than the name brand drug and using the mail order plan through the insurance is still much less than the cash price.

It's hard to see all these costs increase but it's still affordable for us. It's just tough to know what the cost used to be and now you have to pay more for the same thing.
__________________
Married, both 62. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 09-08-2011, 12:58 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Posts: 1,648
As others....shop around...and increase your deductibles. You will be glad you did. Last year I was able to actually get my homeowners reduced by getting competing quotes from other companies in writing...namely Progressive.
I carry a $5,000 deductible on my home....and the highest possible on my car. Point is...I've never made a claim on either.......so why pay the high premiums?? If you make a claim.... they keep it in the data base for I think either 5 years or 7 years ...and it is accessible for all insurance companies to see......so it's to your advantage to not file claims for small amounts...as it just increases your premiums going forward.
But you probably already know that....
__________________
sheehs1 is offline   Reply With Quote
Old 09-08-2011, 05:47 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,879
Re: Homeowners' insurance: One thing to keep in mind is that even if the value of your home has fallen, the cost of rebuilding it if it burns down (say) keeps going up.

I resent that insurance on our rental town house costs more than 2/3 as much as insurance on our home, when the town house is worth about 40% as much as the house. Our Nationwide agent informed us that if we didn't already have our home and car insured with them, the company would refuse to insure the rental home. Apparently, tenants these days are on some kind of mad house-destroying kick.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 09-08-2011, 05:58 PM   #11
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
You should shop around for better rates (as many on this website do ).

Quote:
Originally Posted by dm View Post
Is everyone seeing these kind of increases? I'm now paying $1130 a month for my wife and I for health insurance. I'm 54, she is 50, we are on a group plan from her former employer.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 09-08-2011, 06:50 PM   #12
Thinks s/he gets paid by the post
 
Join Date: May 2006
Location: Largo
Posts: 1,945
Quote:
Originally Posted by dm View Post
I'm 54, she is 50, we are on a group plan from her former employer.
Our health insurance is with Humana. The premium is $339 per month with a $10,000 deductible and preventative care stuff free. Then they cover 100%. Me 52, he 62. Neither of us have pre-existing conditions so no healthcare expenses (other than our premiums) since our policy started on May 1. The broker who helped me find and purchase the policy said he will shop it every year to get the best price available.

Humana seems to be growing like crazy and are doing a lot of hiring in the Tampa Bay area. Not sure what that's all about. Are they new to the individual health insurance arena?
__________________
Buckeye is offline   Reply With Quote
Old 09-08-2011, 08:19 PM   #13
Recycles dryer sheets
SteveL's Avatar
 
Join Date: Aug 2005
Posts: 380
Homeowners' insurance is a big loser for the insurance industry and has been for since the policy (combining fire insurance and liability together) was created in the 1960's. 2011 will be another bad year for the industry. Missouri is ground zero for hail storms and tornadoes. Lots of companies are rating HO policies in part based on credit score.
In any event, the advice to shop around is good. Try local companies like Shelter.
__________________
Retired -- 2001
SteveL is offline   Reply With Quote
Old 09-08-2011, 09:22 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,326
My group health insurance rate actually fell a bit over 1% this year. I think the larger deductibles, co-pays and larger stop loss, make people think twice about running to the doctor every time they sneezed.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 09-08-2011, 09:47 PM   #15
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,851
This year:

Health insurance went up 6.9%
Homeowners' insurance went up 6.3%
Flood insurance went up 8.5%
Car insurance went up 5.1%
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 09-08-2011, 11:10 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
I also don't like the rate hikes, but with a burned home replaced and DWs brain ops I have to admit that we will never pay as much as we have received from our insurance policies.
__________________
Al
TromboneAl is offline   Reply With Quote
Old 09-09-2011, 09:58 AM   #17
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
My homeowner and umbrella also went up 10%+, and has for the last several years. I am all bundled, and supposedly taking advantage of all savings.

I think insurance companies know people "hate the hassle of switching" - so they raise existing folks and bend-over-backwards to get new customers - just like cable companies...

So I'm shopping around.
__________________
Delawaredave5 is offline   Reply With Quote
Old 09-10-2011, 07:21 AM   #18
Thinks s/he gets paid by the post
John Galt III's Avatar
 
Join Date: Oct 2008
Posts: 1,285
I have them combined. I have Erie. They actually lowered my homeowner's and auto a few years ago, when they started checking credit scores. Then I had small or no increases for a few years, but last year my auto went up 15 percent, and this year my ho went up 13 percent.
__________________
John Galt III is offline   Reply With Quote
Old 09-10-2011, 12:21 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,326
Haven't the insurance companies heard of deflation??
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 09-10-2011, 12:47 PM   #20
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,038
Homeowner's insurance: no increase
Life insurance: no increase
Heath Insurance: no increase
Car insurance: +4.4%
Disability insurance: +3%

Not bad at all.

I am seeing large increases elsewhere though:
+17% for cable TV and internet
+78% for Netflix
+7.6% for phone
Good news is, I can roll back most of those increases by cutting service.
__________________

__________________
FIREd is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
FIRE and health insurance w/pre-existing conditions ArizonaJay FIRE and Money 22 08-31-2011 08:52 PM
Massachusetts Individual Health Insurance inquisitive Health and Early Retirement 9 06-28-2011 09:22 AM

 

 
All times are GMT -6. The time now is 12:30 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.