Insurance rate increases

[dm]

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.

 

[REWahoo]

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.

 

[chinaco]

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.

 

[zinger1457]

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.

 

[dm]

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.

 

[Aiming_4_55]

I hear you DM.

My homeowners went from $900 to $1150. I'm currently shopping around.

 

[Trawler]

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.

 

[Sue J]

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.

 

[sheehs1]

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....

 

[Amethyst]

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

 

[obgyn65]

You should shop around for better rates (as many on this website do ).

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.

 

[Buckeye]

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?

 

[SteveL]

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.

 

[Chuckanut]

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.

 

[W2R]

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%

 

[TromboneAl]

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.

 

[Delawaredave5]

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.

 

[John Galt III]

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.

 

[Chuckanut]

Haven't the insurance companies heard of deflation??

 

[FIREd]

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.

 

[braumeister]

Auto policy increased by less than 3% this year.

Homeowner's policy increased by nearly 23% this year. The vast majority of the increase was due to the Earthquake component essentially doubling. Even though we are nowhere near a recognized fault line, I still think it's a good idea. That coverage is still only about $15 a month.

 

[rescueme]

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%

More importantly, what was the increase vs. your total budget?

 

[W2R]

More importantly, what was the increase vs. your total budget?

Well, that's a moving target since the budget I decide on each year depends on so many factors. I do have "fixed income" from my itsy bitsy teeny weenie [-]yellow polka-dot bikini[/-] federal pension, but much of my income is from my portfolio.

 

[rescueme]

Well, that's a moving target since the budget I decide on each year depends on so many factors. I do have "fixed income" from my itsy bitsy teeny weenie [-]yellow polka-dot bikini[/-] federal pension, but most of my income is from investments.

Income sources may vary, but your actual budget forecast usually dosen't (except for large one-time items - that you should have planned for, anyway).

That was my original question ...

In the scheme of things, do insurance (or any other budget line item) increases make a major impact on your total expected expenses?

Speaking for myself? No. It's a line item that usually increases (and get's my blood boiling) but overall has little impact to my overall budget which has increased 2-2.5% per year (over the last four years of my retirement) for all expense catagories...

 

[W2R]

Income varies, but budget usually dosen't (except for one-time items).

I realize from what you are saying that a budget that is a moving target isn't usual for you, but as I already said (quite clearly, I thought?) right now mine is moving a great deal, as are my actual expenditures, in opposite directions I might add.

However, there are several other members who have given their percentage increase in insurance costs in this thread. I am sure they will be glad to provide you with the information you seek when you ask them directly by quote/username, as you did me.