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Car insurance premium increases in 2023
05-27-2023, 11:27 PM
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#1
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Posts: 7,214
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Car insurance premium increases in 2023
My annual premium is up 25.7%, SF. Bay Area.
I Googled, there are several stories about 8.4% increase on average across the nation.
Ridiculous, I haven't submitted a claim in over 2 decades, no points on my record either.
And I think I have it set to low mileage on the vehicle but I probably didn't even put 2000 miles on it the past year.
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05-28-2023, 05:15 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jan 2010
Location: dubuque
Posts: 1,136
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mine went up 20 percent and I thought I would check around. I checked 3 other major companies and they were all within 100 dollars for 2 houses, 2 cars, and an umbrella. it is hard to believe there is no collaboration going on between the insurance companies.
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05-28-2023, 06:53 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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All businesses adjust their pricing to be competitive, they have to. It’s only collaboration in an indirect sense. Price increases won’t stick unless there’s an underlying cost increase for an industry - lots of that across the board lately.
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05-28-2023, 07:48 AM
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#4
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Recycles dryer sheets
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Keep in mind that the insurance company can't just arbitrarily raise your rates. Granted, they have been trying to recover rate increases that were paused during covid, but as I politely reminded, the insurance commission and/or department of your respective state controls how much of an increase will be permitted.
Basically, the insurance company files an application with actuarial data supporting the rate increase they request, the insurance department reviews it and gives them permission to implement the increase, or perhaps an increase lower than what they have requested.
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05-28-2023, 07:48 AM
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#5
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Recycles dryer sheets
Join Date: Apr 2023
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one of the issues driving these increases is the increased cost to repair even the smallest bumper bender, given the technology with cameras and sensors.
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05-28-2023, 08:17 AM
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#6
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Quote:
Originally Posted by Kings over Queens
one of the issues driving these increases is the increased cost to repair even the smallest bumper bender, given the technology with cameras and sensors.
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+1. There are some makes with headlights that cost $2000-3000 - BMW, Mercedes, Volvo and others. They used to be less than $100…
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 40% bonds / 10% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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05-28-2023, 08:24 AM
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#7
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Car insurance only went up slightly this year. Lucky.
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TGIM
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05-28-2023, 08:26 AM
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#8
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Increased cost to repair, increased valuations.
Usually you get a bump down in valuation each year so your rate drops because the "total-out" price lowers. In the last two years, it has probably actually risen in value.
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05-28-2023, 08:30 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2012
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Quote:
Originally Posted by explanade
M... ...
And I think I have it set to low mileage on the vehicle but I probably didn't even put 2000 miles on it the past year.
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Check this. My company also has a program where your premium is based on very low mileage. One of our cars is driven less than 1K miles/year and the other, about 4-5K/yr. Occasionally, the premium reverts back to 'average' miles driven and I have to call and they adjust the premium.
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05-28-2023, 10:37 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by Kings over Queens
one of the issues driving these increases is the increased cost to repair even the smallest bumper bender, given the technology with cameras and sensors.
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True, but shouldn’t some of that tech be preventing accidents also?
Are we a net winner or loser on the cost of this tech?
I don't know.
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05-28-2023, 12:08 PM
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#11
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Quote:
Originally Posted by Chuckanut
True, but shouldn’t some of that tech be preventing accidents also?
Are we a net winner or loser on the cost of this tech?
I don't know.
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Losers. It is disappointing. Fatalities per mile and population are trending up. Something is wrong. Perhaps the extra assists give people a feeling to be more distracted? Drive faster? More recklessly? It is not a good trend and experts are trying to understand it.
Fatalities are not improving, and costs are skyrocketing. I realized this with my 2011 Honda I recently bought that has blind spot indicators. Turns out any minor bumper hit would break these.
Statistical source: https://en.wikipedia.org/wiki/Motor_...n_U.S._by_year
Summary:
Year | Per 100M Miles | Per 100k pop | 1970 | 4.74 | 25.67 | 1980 | 3.35 | 22.48 | 1990 | 2.08 | 17.88 | 2000 | 1.53 | 14.86 | 2010 | 1.11 | 10.67 | 2015 | 1.15 | 11.06 | 2018 | 1.13 | 11.18 | 2019 | 1.10 | 10.99 | 2020 | 1.34 | 11.67 | 2021 | 1.37 | 12.81 | 2022 | 1.35 | TBD |
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05-28-2023, 01:18 PM
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#12
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Recycles dryer sheets
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Maybe it has something to do with the 28 million uninsured motorists, the 38 million US citizens without a valid drivers license driving around, and the untold millions of people here illegally behind the wheel.
What percent of accidents are caused by people without a valid license?
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05-28-2023, 02:20 PM
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#13
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Moderator
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Location: Flyover country
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Quote:
Originally Posted by madatrub
Maybe it has something to do with the 28 million uninsured motorists, the 38 million US citizens without a valid drivers license driving around, and the untold millions of people here illegally behind the wheel.
What percent of accidents are caused by people without a valid license?
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You have some sources to back that up, I presume?
The numbers cited sound ridiculous to me.
But on the last point, the AAA estimates that about 20% of accidents involve an unlicensed driver.
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05-28-2023, 03:20 PM
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#14
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Quote:
Originally Posted by Kings over Queens
Keep in mind that the insurance company can't just arbitrarily raise your rates. Granted, they have been trying to recover rate increases that were paused during covid, but as I politely reminded, the insurance commission and/or department of your respective state controls how much of an increase will be permitted.
Basically, the insurance company files an application with actuarial data supporting the rate increase they request, the insurance department reviews it and gives them permission to implement the increase, or perhaps an increase lower than what they have requested.
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I worked in the actuarial field for 23 years, specializing in personal auto insurance. Some states are like the ones you described ("prior approval"). But others did not require prior approval of rate changes. Those were called "file and use" states. I don't recall the exact breakdown between these two broad groups, but I can say that the states where car insurance was more expensive in general tended to be prior approval ones. Those states asked us the most questions and gave us the hardest time before they would grant approvals.
As for my own car, the rates dropped a lot during COVID. This was for liability coverages (which did not depend on aging of my car) and for physical damage coverages (Comprehensive and Collision) whose rates dropped also due to the car aging.
But with COVID behind us, at least as far as car insurance goes, the rates for my liability coverages have risen pretty sharply this year, back to pre-COVID levels, while physical damage coverages have risen slightly, as opposed to still dropping due to the car's aging. Physical Damage rates, for me, are only about 20% of the total premium.
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05-28-2023, 03:47 PM
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#15
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,207
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Quote:
Originally Posted by explanade
My annual premium is up 25.7%, SF. Bay Area.
I Googled, there are several stories about 8.4% increase on average across the nation.
Ridiculous, I haven't submitted a claim in over 2 decades, no points on my record either.
And I think I have it set to low mileage on the vehicle but I probably didn't even put 2000 miles on it the past year.
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25.7%? That's rough.
Luckily my car insurance (Allstate) went up "only" 13.2% from a year ago, which is not great but it sure is better than 25.7%.
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05-28-2023, 04:04 PM
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#17
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My USAA auto policy increased 14% vs six months ago, however I saw only a 7% increase since I signed up for their Safe Pilot discount last year. If the discount continues at the current level I will see an annual savings of about $600.
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Numbers is hard
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05-28-2023, 04:44 PM
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#18
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Recycles dryer sheets
Join Date: Jan 2017
Posts: 136
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Geico auto insurance for 3 relatively newer cars went up just over 11% the last renewal of our policy in
April. Location is Columbus OH suburb.
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05-28-2023, 06:00 PM
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#19
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Recycles dryer sheets
Join Date: Sep 2020
Location: Tampa, FL
Posts: 131
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Just read an article on how much car insurance has gone up here in Florida.
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05-28-2023, 06:30 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Location: North
Posts: 3,806
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Ours went up a lot with SF so we switched to AAA with higher deductible and a little less coverage. (Dropped rental from my truck policy, low PD)
So we got a cheaper policy but a little less coverage / more risk.
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