Car insurance premium increases in 2023

[JoeWras]

Everyone here also seems to be forgetting that the most of your premum goes towards Bodily Injury Liability and now a large part to Med Pay and Uninsured and Underinsured Motorist coverage ? Basically medical bills....have they gone up lately ?

I don't think everybody is forgetting.

Some of this depends on your state or your zip code.

In my case, body liability and medical is $150 (per 6 months). My property liability and collision is $284. So it isn't most of my premium. Your point is well taken: medical aspects of car insurance continue their inexorable rise and a decades-long megatrend. In my state, uninsured coverage includes liability of all kinds, so it is hard to break out. But yeah, it has gone up a lot.

The thing is, the property component in the past few years has been significant. For many of us, our own collision/comprehensive has gone up year-over-year. This rarely happens. Normally, the value of the car going down causes that to drop. It is going up.

Here's a little table of my component changes from July 2021 to January 2023. Cars and coverage are identical over this time.

Liability(Injury)	6.8%
Liability(Property)	10.4%
Medical Payments	9.1%
Collision and Comprehensive	19.3%
Uninsured	98%

 

[Telly]

...... If an insurer writes off a car as a total loss, is anyone allowed to salvage it for other parts at least or repair and use it or re-sell it?

Or sell other parts?

Or does the insurer take control of the car and sell it to some salvage operation to recoup some of their write-off?

Years ago, one of our cars was totaled due to hail damage. The ins. co. would give us $4k for the car, which was ~20 years old, and they would send it to salvage. Or, we could keep the car, and in effect pay the ins. co. the salvage cost, which they quoted as $220. We kept the car, and they deducted the $220 from the $4k payment to us.

End Story - It filled a transportation need for us at the time, later became redundant, and parlayed it into a state emissions cash for clunkers program that had very narrow requirements. And form submissions that opened up once a month akin to the much-later stressful and short-window early COVID-19 vaccine online signups. $3k voucher to be used within 30 days on specific classes of higher-mileage vehicles.

 

[Teacher Terry]

My policy is set to renew in July so curious to see if it will go up again like last year.

 

[JoeWras]

My policy is set to renew in July so curious to see if it will go up again like last year.

2 years ago, Amica went to a 6 month renewal instead of 1 yr. They saw the rapid rise and wanted to make sure to catch it every 6 months.

 

[scrabbler1]

Everyone here also seems to be forgetting that the most of your premum goes towards Bodily Injury Liability and now a large part to Med Pay and Uninsured and Underinsured Motorist coverage ? Basically medical bills....have they gone up lately ?

You have to take into account what your limits and deductibles are, especially the BI Liability limit. No-Fault, which some states allow in lieu on the narrower Med Pay coverage, is usually costlier than Med Pay because it includes non-medical coverages such as income loss. Granted, most of No-Fault pays for Medical bills.

A newer and/or more expensive car will have high Collision rates, possibly higher than your BI rate if you don't have a high BI limit. Comprehensive tends to be a cheaper coverage but how it varies can track Collision. If you live in a part of a state prone to lots of natural disasters such as floods or hurricanes, you may see higher Comp rates despite smoothing procedures which can prevent large swings in those rates.

As for UM and UIM, they vary a lot by state. For me, UM/UIM is a very cheap coverage, never being more than 7% of my premium. I do have lower limits for UM/UIM than I have for BI, but having higher limits of UM/UIM wouldn't push up that percentage much. UIMBI can vary a lot by state because the way the coverage applies can vary a lot by state. If you live in a state with the broadest possible UIMBI coverage, you will pay more, possibly a lot more, especially if you live in an urban area in that state, especially if you buy high limits.

 

[JoeWras]

I normally drop collision and comprehensive when the car is 10+.

Not this time! I'm keeping it on our 12, 13 and 14 year old vehicles since their replacement value has been going up. Maybe used cars prices will crater soon and I'll drop it.

 

[Koolau]

Years ago, one of our cars was totaled due to hail damage. The ins. co. would give us $4k for the car, which was ~20 years old, and they would send it to salvage. Or, we could keep the car, and in effect pay the ins. co. the salvage cost, which they quoted as $220. We kept the car, and they deducted the $220 from the $4k payment to us.

End Story - It filled a transportation need for us at the time, later became redundant, and parlayed it into a state emissions cash for clunkers program that had very narrow requirements. And form submissions that opened up once a month akin to the much-later stressful and short-window early COVID-19 vaccine online signups. $3k voucher to be used within 30 days on specific classes of higher-mileage vehicles.

I've always thought it would be great to be able to buy a "totaled" hail-damaged car off a dealers lot - for the deductible. You'd have a new car (beat up, of course) warrantee, all the bells and whistles, etc. Probably last as long as a perfect car. Cheap transportation at an affordable price.

 

[Teacher Terry]

So GEICO just sent me my 6 month renewal and it went up 30%. I think 100/month for a 15 year old Toyota Corolla that is only driven 2700 miles a year is ridiculous. So I called and said I was going to shop around and she looked at my policy and said that she couldn’t go cheaper.

I then got quotes and nothing was cheaper. I looked at my coverage and lowered 2 of them from 300-500k to 100-300k and that got the premium down 15/month. I googled it and various places said that is sufficient coverage. I already have a 1k deductible. My car is still worth between 5500-6500 so not dropping collision. I just read that Nevada has some of the highest rates in the country.

 

[Telly]

We received our 6 month auto renewal with SF... 21% increase.
Our SF 12 month umbrella just went up 14%. It had been the same cost for the last 5 years. And 6 years before that, it was stable at a few dollars more than the next 5 years (reduction in cost).
So these large insurance increases are pretty unusual.

 

[Koolau]

So GEICO just sent me my 6 month renewal and it went up 30%.

Betcha wanted to stomp on the Gecko.

 

[Morgan22]

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.

We have Mercury also for auto. We have our truck as garaged in San Diego. Just received our renewal notice and it actually decreased this year by $546, or by 37.5%. We carry high limits since we have umbrella also. I was very surprised by the decrease since they use actual mileage. We drove 19k miles last year, compared to the year before of 11k.

But we won't be renewing with them since we are officially relocating across country (again). I hope our insurance for our new state will be just as low.

 

[explanade]

CNBC has a story about car insurance premiums being among the service most affected by inflation.

- The auto insurance inflation rate is up 17% in the past year, according to the May consumer price index.

- Meanwhile, the average price for new vehicles has been declining. Pricing in the used vehicle market is poised to soon do the same, economists said.

- Auto insurers have raised premiums amid a higher frequency of crashes and repair costs during the pandemic era.

- Auto insurance premiums have been among the fastest-rising prices for consumers over the past year, according to federal data — a dynamic that might seem at odds with car prices, which are broadly trending lower.

So, what's going on?

In short: Auto insurance prices generally track those in the car market but do so with a lag, economists explain. Insurance costs have jumped following record-high car prices during the pandemic era, and are likewise expected to fall in coming months.

Read in CNBC: https://apple.news/AmLFzPZlOQFWxwswW_s3eMA


I usually pay car insurance premiums for the whole year.

Do people usually see month to month premium fluctuations?

 

[friar1610]

My USAA premium for 2 cars (2011 Buick Regal and 2015 Volvo XC-70) went from $16xx to $18xx for 12 months in MA. I dropped the collision on the Buick and that kept it about the same as last year. Senior drivers, low annual mileage.

 

[ncbill]

Liability has always been a flat premium across all my vehicles.

Now with the latest policy (added a vehicle) I get charged for liability premium based on the individual vehicle's value, which makes no sense.