Insurance increases year over year are crazy

[tominboise]

I just did a roll up of my insurance coverage. I have 8 vehicles and 2 houses insured with a major national brand (think "Jake from ....). My vehicle policies all increased, an average of 12.16%, with one going up 24.37% (on a 2019 VW Golf) and another going up 22.10% (on a 2006 Chevy Silverado pickup). The least increase was 4.66%. There have been no tickets nor claims on any of these vehicles.

The two house policies went up 20.04% and 21.97%, respectively. The two houses are both located in Idaho. No floods, tornadoes, hurricanes.

Maybe all insurance is going up to cover the losses the industry is suffering in general. Seems like I have to cover the losses all by myself LOL.

Is it worth going to an independent broker and getting all these policies requoted? I have been with the current provider for 25 years.

 

[Qs Laptop]

Yes, I think it would be beneficial to get quotes from competitors. I've found that changing insurance companies every 6-8 years saves me a lot of money. It seems that insurance companies get you onto their policies with low prices and then gradually raise them year-over-year until there is a point where the increase really raises eyebrows. That appear to be where you are at right now.

It's a hassle but worth it.

 

[Kings over Queens]

Maybe all insurance is going up to cover the losses the industry is suffering in general. Seems like I have to cover the losses all by myself LOL.

Is it worth going to an independent broker and getting all these policies requoted? I have been with the current provider for 25 years.

It's as bad an insurance market as I've seen in 39 years.

worth a shot quoting with carriers, but keep in mind, they are going to look at your account through a new set of eyes. they may push for higher dwelling limits, as an example. they may inspect your property and notice that raised flag of concrete that is a trip hazard, or the slight curling in your 25 year roof tiles.

Pan>fire...as it were.

 

[Surewhitey]

We reduced 1 car to liability only & upped the house deductible. Made a big difference.

Why 8 cars?

 

[foxcreek9]

We reduced 1 car to liability only & upped the house deductible. Made a big difference.

Why 8 cars?

I keep collision on older cars for towing and storage fees, the cost is minimal (at least for us). My son works in auto claims, he has seen how the costs can rack up and has always recommended keeping collision.

 

[nvestysly]

Our policy renewal period is mid-August. We recently received our premium letter and found the overall increase for 6 vehicles, house, umbrella policy was in the 15% range. We have been with this carrier for over 30 years and believe them to be one of the best in the industry. It's not a name that most people have ever heard of but they are usually in the top 3 insurance providers when it comes to customer service and ease of claims - Cincinnati Insurance.

Our local, independent agent/broker represents many national carriers. The agent recommended that we stick with our carrier. The agent went further to say... we are not recommending anyone change carriers (no matter the "brand") unless the premium increase was more than 20%.

As with many things, insurance premiums are somewhat localized - weather patterns, driver habits, propensity for litigation, etc. are all considered when carriers adjust premiums.

With all the Do-We-Screw-Em-And-How attorneys advertising on television and radio, it's not unexpected to see the downside is higher premiums for nearly everyone.

 

[tominboise]

We reduced 1 car to liability only & upped the house deductible. Made a big difference.

Why 8 cars?

I messed up, it's actually 6 cars and two dual sport motorcycles.

 

[jazz4cash]

They really screw you when your number of cars > the number of drivers as if you can drive more than one at a time. Many yrs ago the insurer I used discontinued a discount for < 5k annual mileage. A pay by the mile policy might work but you have to give up some privacy.

I was rear ended last week and the adjuster is nagging me about them having to pay $150/day for storage so it might make sense to keep collision active but haven’t in the past.

Best deal going if you have multiple cars is collector car coverage if you qualify.

 

[MichaelB]

Just for kicks I took a look at Allstate’s financial results. They are terrible. From ‘21 to ‘23 the cost of claims rose 40% and they lost money in ‘22 and ‘23 despite hefty price increases. No wonder insurance prices continue to increase so sharply.

 

[ncbill]

We reduced 1 car to liability only & upped the house deductible. Made a big difference.

Why 8 cars?

Maximum home deductible allowed by my current insurer is only $2,500.

And at one point I had 7 vehicles for 4 drivers...now down to 4 vehicles for 2 drivers.

 

[Surewhitey]

Just for kicks I took a look at Allstate’s financial results. They are terrible. From ‘21 to ‘23 the cost of claims rose 40% and they lost money in ‘22 and ‘23 despite hefty price increases. No wonder insurance prices continue to increase so sharply.

Don't forget the inflation of salaries, bonuses and RSU's for my wife. She's killing it & she's in the environmental, worker's comp insurance biz. Insurance is up there with the big pharma on fleecing everyone.

 

[old medic]

We reduced 1 car to liability only & upped the house deductible. Made a big difference.

We just bought a newer truck, went from 05 to 22, same style 4WD Silverado, keep liability on the 05 and ours dropped $93 /6 months. They say it was because of newer tech/safety features.

 

[Koolau]

I just started a thread regarding the potential settlement of the Lahaina Maui fires from last year. The settlement looks like it will be around $4 billion (without the insurance companies direct involvement as nearly as I understand it.) SO, my SWAG is that those 7 entities involved will likely be looking to have their various insurance carriers make them whole. (Honestly, I don't know how this all w*rks, so stay tuned.) And then those insurance carriers will come after insured customers to make THEM whole. It all sorta runs down the proverbial hill though YMMV.

In any case, we've already heard "threats" from the insurance industry that they will simply pull out of Hawaii if they aren't allowed to raise rates to cover their losses. SO, I'm expecting unpleasant increases in insurance costs in my future.

 

[ziggy29]

Insurance (home and auto) are frustrating because underwriting criteria can vary so much from one insurer to another. And, as they say about the real estate market, "location, location, location". Where we live, we've not seen much in the way of increases at all. Yet I hear from others who have the same insurer as we do, in California, Texas, Florida, Arizona... they have been seeing rate increases up to 50% or more. Even here in Oregon, folks inland are seeing significant increases in homeowners (I assume wildfire risk) but here on the coast, our base rate actually went down about 3% this year.

Between all the wildfires, hurricanes, and massive rebuilding costs in part because of the supply chain disruptions circa 2021-22, insurers took a pretty massive hit.

 

[JoeWras]

There is a lot going on.

Deductible choices haven't kept up with inflation. People keep very low deductibles these days.

Young people access insurance much more readily than previous generations. The internet tells them to. Not saying it is wrong. Everyone has a right to access their insurance contract to the fullest. But with the lower deductibles and the opinion that insurance companies are evil, they feel encouraged to "stick it them."

People continue to move to risky areas, developers continue to build in these high risk areas. Governments continue to allow it, sometimes encourage it.

Cars are complex. Crash regulations result in more "save the people, not the car" accidents. This is done by easy crushing, explosive airbags, etc.

People demand style with the cars. This costs. 40 years ago, you tap a bollard and it results in you replacing a seal beamed headlight ($10) and maybe beating that slight crease out of the corner of the hood. Today, that's a $2000 repair.

Home complexity is also increasing. Homes are air tight. People are aware of environmental issues. A small kitchen fire of a grease pot burning may result in $15k worth of smoke remediation. 40 years ago, mom and dad filled the house with cigarette smoke and probably wouldn't have even noticed the smell from the grease fire.

Remediation companies and roofers have found ways to make insurance pay. Moisture extraction machines run for a few days at $200 per hour and insurance pays. Fair price? I dunno. Mom and dad would have opened the windows for a few days. It is a change in thought. And honestly, some is selling by fear, mostly of mold.

 

[pletal]

I just did a roll up of my insurance coverage. I have 8 vehicles and 2 houses insured with a major national brand (think "Jake from ....). My vehicle policies all increased, an average of 12.16%, with one going up 24.37% (on a 2019 VW Golf) and another going up 22.10% (on a 2006 Chevy Silverado pickup). The least increase was 4.66%. There have been no tickets nor claims on any of these vehicles.

The two house policies went up 20.04% and 21.97%, respectively. The two houses are both located in Idaho. No floods, tornadoes, hurricanes.

Maybe all insurance is going up to cover the losses the industry is suffering in general. Seems like I have to cover the losses all by myself LOL.

Is it worth going to an independent broker and getting all these policies requoted? I have been with the current provider for 25 years.

As an insurance agent , yes worth the time to check. Not sure if Country Financial insures in your state, but they are very good and rates are less because they stay away from risky states (Florida) as example

 

[motley]

I messed up, it's actually 6 cars and two dual sport motorcycles.

Oh well, if that's all...

tbh IMO if you can afford six cars and two motorcycles, I don't get why a roughly 10-20% insurance increase really bothers you all that much. It's significant, but I wouldn't say "crazy."

For my auto and home, I mostly go by price (for the same coverage). As a veteran I had a great deal at USAA and thought I always would...then my renewal came up and they literally doubled the price for my auto insurance. Good-bye USAA. Shopping around pays off. I found coverage for only slightly more than I had with USAA before.

 

[ziggy29]

For my auto and home, I mostly go by price (for the same coverage). As a veteran I had a great deal at USAA and thought I always would...then my renewal came up and they literally doubled the price for my auto insurance. Good-bye USAA. Shopping around pays off. I found coverage for only slightly more than I had with USAA before.

I have USAA as well. And it seems like I have heard a LOT of stories about folks who have been claims-free with USAA for even decades getting 20%, 30%, even 50% or more rate increases for home and auto. It feels like there is more sensitivity to specific places where they think risk is higher. We've not seen any increases, home or auto, more than about 6%.

But yes, every insurer seems to have just enough difference in how they price risk by situation and location that it's always worth shopping around.