Car insurance premium increases in 2023

[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.

 

[frank]

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.

 

[Midpack]

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.

 

[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.

 

[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.

 

[Midpack]

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.

+1. There are some makes with headlights that cost $2000-3000 - BMW, Mercedes, Volvo and others. They used to be less than $100…

 

[Dtail]

Car insurance only went up slightly this year. Lucky.

 

[JoeWras]

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.

 

[TrvlBug]

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.

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.

 

[Chuckanut]

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.

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.

 

[JoeWras]

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.

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_vehicle_fatality_rate_in_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

 

[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?

 

[braumeister]

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?

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.

 

[scrabbler1]

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.

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.

 

[W2R]

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.

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%.

 

[madatrub]

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.

Uninsured Motorists, 28 mil:

https://www.insurance-research.org/sites/default/files/downloads/UM NR 032221.pdf

Unlicensed Adults, 38 mil:

https://hedgescompany.com/blog/2018...f Americans don,have a valid driver's license.

2 million, just in CA:

https://getjerry.com/questions/how-many-unlicensed-drivers-are-there

229 million licensed drivers.

https://www.fhwa.dot.gov/policyinformation/statistics/2019/dl1c.cfm


260 million adults over 18:

https://www.census.gov/quickfacts/fact/table/US/LFE046221

Illegals? Somewhere between 11 million and 50 million? Dozens of sources on this.

 

[REWahoo]

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.

 

[mcbraemer]

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.

 

[FloridaJim57]

Just read an article on how much car insurance has gone up here in Florida.

 

[kgtest]

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.

 

[Pointby2]

Our insurance went up again this year. This time because we were getting older. Sigh.
Still only $49.98 a month per car though since we drive limited miles.



It's actually gone down since 2017 and we're in SoCal. We are with Mercury.

 

[rk911]

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.

We have 4-vehicles. in total our most recent State Farm premiums were up 13%. Our motorhome policy was actually down .5% but our antique '46 Willys Jeep was up a whopping 30% (no claims). Our two primary cars ('03 Wrangler, '10 Liberty) were up around 11%.

 

[Retire2023]

Our auto premium is set to increase by more than 35% next month! No claims or points. We did turn 62 this spring. Would just that cause the rates to go up that much?

 

[rk911]

our SF insurance on our 2010 Jeep Liberty went up $48 or 11% for the next 6-mos. we've been with SF for the last 53-yrs. We're happy.

 

[F.I.R.E User]

Our insurance went up again this year. This time because we were getting older. Sigh.
Still only $49.98 a month per car though since we drive limited miles.



It's actually gone down since 2017 and we're in SoCal. We are with Mercury.

Which company? Is this just liability?