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Rate creep frustration!
Old 10-17-2017, 03:31 PM   #1
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Rate creep frustration!

Ever since retiring (actually, quitting part time consulting), I have been keenly aware of periodic bills such as insurance, cable service, taxes, and so forth.

This week we got our annual house, umbrella and auto insurance bills from our insurer. To my amazement, home and umbrella went up about 10% and the auto policy went up about 20%. This is right after we fought a rate decline with Comcast for another year. It seems like I am going through this on a regular basis.

The car insurance rate increase has me really peeved. We drive less, are retired, don't live in a high risk county and have not had a claim in 10 years or longer. I called the agent and her answer to the rate increases was "all insurance rates in Texas" went up...." Ughh, I stated to her that the inflation rate is only 2% in the U.S.?? No reply. I doubt that she knows why there was such a high rate increase.

Since we are coming into the end of the year, and moved into this downsized house in November 2014, most renewal type bills are crammed into the last two months of the year. I am seeing out property taxes going up, our water use rate ($$/gallon) increasing, our HOA monthly fee went up this year (5%), my Medigap insurance cost went from $155 to $172 per month, DW's Medigap rate increase was even higher on a percentage basis, and on and on. Even the guys who cut our back yard grass, which takes all of ten minutes, are asking for $35/cut vs. $25.

What the heck is going on? It appears that rate increases (and tack on charges) are out of control. I know you folks buying ACA policies are being gouged and that hurts, but I'll bet you are also facing the same rate creep crap that we are facing.

Anyone have a similar "story" (not including ACA screw jobs)?
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Old 10-17-2017, 03:51 PM   #2
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My rates went up substantially in the last couple of years too.
Like you, I saw no reason for it on a personal basis, but then I realized that the insurance companies have been hit pretty hard lately with hurricanes, fires, etc. They really have no choice but to spread those costs out to all their policyholders.
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Old 10-17-2017, 03:54 PM   #3
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It could be that TX has so many people driving without insurance that the ones with insurance have to pay more.

Here in MN it is a law to have insurance, but I have heard that over 25% of the people do not have valid insurance.
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Old 10-17-2017, 03:57 PM   #4
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shop your insurance.
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Old 10-17-2017, 04:00 PM   #5
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Quote:
Originally Posted by aja8888 View Post
The car insurance rate increase has me really peeved. We drive less, are retired, don't live in a high risk county and have not had a claim in 10 years or longer. I called the agent and her answer to the rate increases was "all insurance rates in Texas" went up...." Ughh, I stated to her that the inflation rate is only 2% in the U.S.?? No reply. I doubt that she knows why there was such a high rate increase.
I had almost exactly the same experience with my homeowner's insurance a few years ago. When I called to inquire about a large premium increase, the agent I spoke with said that it was due to an across-the-board rate increase in Georgia plus some other minor factors. She wasn't willing to offer even a small discount for me as a long-time customer. So I called around to a couple other insurance companies, got some competitive quotes, and ended up saving myself well over $200/year by switching. When I called my original insurance company to tell them I was leaving due to their overpriced premiums, all they said was "OK... sorry to see you go." It was baffling.

As for things like cable/internet, natural gas, lawn service, auto insurance etc., I have been following a semi-regular routine of getting competitive quotes every year or two to keep costs in check. Usually I can use these quotes to get my current provider to lower their prices to match, but sometimes I have to actually switch. In today's world, not doing this and just blindly sticking with the same providers for years and years is very much like flushing money down the toilet.
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Old 10-17-2017, 04:17 PM   #6
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Only cable.
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Old 10-17-2017, 04:19 PM   #7
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My property tax is going up $500+ so that is a pretty big hike.

You can shop around some other companies for car insurance and homeowners to see if you can save some money. I had Farmers last year and the rates on my vehicles and home got to the ridiculous level so I was able to move to another company and saved about 40% even after adding umbrella insurance and increasing the limits on auto.
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Old 10-17-2017, 04:29 PM   #8
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I called my car insurance agent and asked why their rates went up so much. I was told it was because I lived in an area where the population has increased a lot and therefore there were more miles being driven and more accidents to cover.
A lot of garbage, as the county I live in hasn't grown that much and I have never had an accident and only one ticket (years ago) in my 50 years of driving.
Next renewal I am going to check prices of other companies and see if I can do better. I've been with this same place close to 30 years so it will be a shame to leave, but they are pricing themselves out of what I am willing to pay.
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Old 10-17-2017, 04:39 PM   #9
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shop your insurance.
Being done as I type this. The Broker is shopping it with dozens of carriers. We have used several carriers over the last 20 years.

It seems like this kind of task should be done every few years or like now, when a shocking rate increase hits you in the face.

On the thought that because a big storm or other natural disaster causes rates to increase across the board, I'm not buying that as insurers should already have that risk baked into the premiums for the location. We had a hurricane recently (Harvey) and my auto policy costs went through the roof?
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Old 10-17-2017, 04:50 PM   #10
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Timely!

I got my home insurance bill today - 30% more! I called another A rated insurance company and got a quote - with a lower deductible - for just a few $s more.

My auto insurance went up by $100+. But I looked around a bit and it was still cheaper than the rest. I'll go through that again in 6 months.

It is very annoying. I didn't ER so I could spend my time chasing these bums.
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Old 10-17-2017, 05:15 PM   #11
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It could be that TX has so many people driving without insurance that the ones with insurance have to pay more.

Here in MN it is a law to have insurance, but I have heard that over 25% of the people do not have valid insurance.
In TX auto insurance is required by law. Not only do we have people driving without insurance, but we even have some driving without licenses, just like in MN.
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Old 10-17-2017, 06:02 PM   #12
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Everything goes up every year. Property taxes, health insurance and costs, MV insurance and upkeep.

I don't worry about it and I don't shop around for better rates. I've got that nut covered.
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Old 10-17-2017, 06:04 PM   #13
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One reason I don't buy a new car is that the licensing fees in my area recently doubled to tripled due to a proposition that passed to enhance mass transit. If I replaced my 5 year old car with a new one, the fee I pay would be about 8x what I now pay.

And insurance on the car has gone up about 15% in the past year due to 'increased costs of repairing modern cars with accident damage'. And, I believe, more accidents due to mobile phone usage while driving.

So... if I was a new car dealer, I would not be happy with the tax increase on the product I sell. And the careless folks who cause insurance on the product I sell to increase.

The same proposition has driven the sales tax percentage to double digits. Now more people I know are now ordering from out of state sites that don't collect sales tax in my state. This is good?
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Old 10-17-2017, 06:20 PM   #14
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Originally Posted by SheitlQueen View Post
I called my car insurance agent and asked why their rates went up so much. I was told it was because I lived in an area where the population has increased a lot and therefore there were more miles being driven and more accidents to cover.
A lot of garbage, as the county I live in hasn't grown that much and I have never had an accident and only one ticket (years ago) in my 50 years of driving.
Next renewal I am going to check prices of other companies and see if I can do better. I've been with this same place close to 30 years so it will be a shame to leave, but they are pricing themselves out of what I am willing to pay.
Good plan, I finally phoned around and discovered my insurance agent I had used for 10 years was charging me too much, and he was a RELATIVE !!!

Now I see how he afforded the big house, and the Lexus vehicles..

I Switched...
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Old 10-17-2017, 06:24 PM   #15
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When I saw "rate creep" I expected this thread to be about painfully tiny savings rate increases. I would describe fees for Insurance and services as rate leap instead of rate creep.
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Old 10-17-2017, 06:33 PM   #16
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When I saw "rate creep" I expected this thread to be about painfully tiny savings rate increases. I would describe fees for Insurance and services as rate leap instead of rate creep.
Yeah, rate leap!!
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Old 10-17-2017, 06:36 PM   #17
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And here I thought it was going to be about comparing unpleasant people one meets on dating sites.
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Old 10-17-2017, 06:36 PM   #18
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I don't understand, the inflation CPI was 2% for the year... this shouldn't be happening
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Old 10-17-2017, 06:41 PM   #19
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And here I thought it was going to be about comparing unpleasant people one meets on dating sites.
I'm sure you can start a new thread on that subject if you wish!
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Old 10-17-2017, 06:45 PM   #20
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It’s called price optimization. They raise the rate “because they can.” It was in the news a while back.

Price Optimization: Being A Loyal Auto Insurance Customer Can Cost You : NPR

My dear old Dad was a loyal customer of the same company for at least 30 years. When I took over the estate as executor after he died, I discovered he was paying over $2k per year for a 2012 Camry; I live in the same county and pay around $600 for similar coverage on a brand new Ridgeline and an old CRV. Highway robbery, plain and simple.
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