Why Is My Insurance Constantly Rising?

Sadly , loyalty to an insurance company means you probably NEVER check your policy and they slowly .....

Wife and I found this out the "Hard way" also... and the SOB's from that ostrich/Boston company were double dipping when one of them took the WRONG Stephen off of our policy....Wife called and the "Jack-a$$" on the other side had her in tears for"daring to ?? " our policy....

Needless to say they were DROPPED when I heard the above.... They then tried to give us back $$ and lower rates with me... I politely told them to F@ck off

With the move to Florida we did get another price shock and were told it was due to "the company pay outs" .....Florida closely watches rates and pay-outs and keeps the insurance company solvent

With that being said, AARP, yes I am that OLD, hooked us up for full coverage at almost 1/2 of current rates we had and they "Shop for me" every year

 

Sometimes they keep raising rates as you get older to get you off their policy without being accused of age discrimination. They sux.
I went from my 2013 Taco with 145k miles on the clock to a 2019 GMC AT4 and my insurance went down $15 a month!!
The reason they said was because I the new truck has all the safety stuff in it. Lane keeping, braking, etc...

 

Fuck State Farm

 

THIS

also, inflation

 

Florida is the worst like getting raped without a kiss....

 

Truth!

 

Jake from state farm would never do that!

 

Unless you have a classic vehicle where insurance is based on a certain mileage allowance every year, the miles you drive per year don't factor into what they charge you.

 

When I went to the 4 runner from the 17 Taco w/all the safety shit and the 4 runner not so much insurance went down $31 mo

 

All of the above, but a couple of things to consider. Insurance rates are based on projected losses the insurance company would have if you file a claim. Insurance companies pay out a lot more for medical costs related to accidents than they do paying for vehicle repair or replacement. As health care costs go up so do insurance rates. And a $1000 clunker will kill and injure just as many people as a $100,000 luxury car. And the $1000

clunker could end costing the insurance company much more than the $100,000 car due to more modern cars being safer.​

Most insurance companies also use your FICO score to determine your rate. They do a spot check about once a year. A couple of years ago I paid off my home and a student loan I took out for my son the same month. That actually caused my credit rating to drop a few points for a couple of months. And guess when my insurance company checked my FICO score. Mine went up 20-25/month on 3 vehicles. If your credit rating dropped some recently this could also be a factor.

 

Thanks for all these informative replies!
Well I live in San Francisco but that was never an issue till lately. Last time I learned of my credit score was when I bought this Lexus in '16. I came in with cash so I still cannot figure why they did a credit check but it was 788 then. Since then I only use one credit card like AMEX where I always pay in full before the interest hits. So I'm assuming it's close to perfect by now four years later.
To me I can take reasonable rate hikes given costs, but it rising $75 in one shot? And about $135 more than when it was brand new? Something don't smell right with this.
They had this "drive safe & save" thing (funny I learned they killed that program) where I'd record the mileage on the RX and the Taco and I'd get another discount as the Taco I only drive about 5000 a year and the RX about 6000 a year. Between both I still fall under the National average so it's like a few said in here, obviously I'm helping to pay up for the scumbag behavior of others.
And someone also said here they hope to take advantage of a loyal customer's complacency. I believe that too!

 

there are well over 100 different rating factors which make up your premium. in ca annual mileage is important. your insurance company may use maintenance/claims/other records to validate this figure. they have the right to change it and you have the right to file a complaint with the state's dept of insurance. you also have the right to quote around to different companies. when you are with an agent (your choosing or not), you can sometimes see higher premiums to compensate for their fees and commissions. if you quote direct with a company you are not charged for those things.

now to address other info in this thread thus far.....

insurance is not a scam. but it is an evil necessity.

yes, cost of business does go up on all consumer goods, when it's appropriate. insurance is a consumer good.

ratings factors and how insurance companies do business does vary greatly from state to state and even policy to policy. it's never fair to compare your insurance experience with someone else. NEVER!

switching companies can be a good thing and it can also be a bad thing. if you switch too often it will work against you.

if your insurance company does not explain why premiums change when they do change, they are not being honest with you. we always know why prices change. sometimes it's because of something you did, sometimes it's because of something beyond your control. but we always know.

@Woolybugger if that truck wasn't registered in your name, that ticket should not have counted against you. i'm guessing it was some type of equipment violation? situations like that or payload violations should not be held against the operator of the truck. speeding, accidents, etc should.

moving to a different zip code is a very big rating factor.

geico is owned by warren buffet. the rates can be super low to start with, but they are probably the most rate unstable insurance companies out there and it's because of the way warren does business. he stated in a recent interview that progressive has the most accurate and stable rates of any company.

newer vehicles have more safety features, but yes they can also be more expensive to fix. 'value' of vehicles are going up in general as well. so in the event of a total loss, insurance companies are now paying out way more than 5, 10, 20+ years ago. see above - cost of consumer goods goes up.

there is NO SUCH THING AS 'FULL COVERAGE.' true professionals in the industry will never use that term. insurance policy options vary greatly and not everyone may choose the same coverages/deductables. so what does 'full coverage' mean? it can mean anything i want it to, basically.

how do you know your insurance company wants to push you out the door? they may find legal ways to raise your premium higher than for someone they want to retain. yes, it's legal. this tactic is due to the insured doing something to be in the high risk category, ie: a lot of accidents, claims, roadside events, missed payments, policy changes, etc. in other situations companies may refuse to renew with you and tell you to pound sand.

different companies use different rating factors. most give (small) credit for safety features - automatic emergency braking, blind spot warning, anti-lock brakes, alarm system, vin etching, etc, etc. this varies from company to company and state to state.

@Seth's Shadow yes, annual mileage is a rating factor in california. it may also be used for some user based insurance plans with various companies in other states.

@Marshall R vehicles themselves aren't used so much to determined medical cost/bodily injury risk, as the driver themselves. insurance companies use credit (in most states) as a rating factor but we do NOT USE YOUR FICO SCORE. nor is it a hard inquiry. we pull your credit report and formulate our own 'insurance credit score' and use that. since your credit worthiness can change over time, insurance companies will reevaluate your credit worthiness from time to time. these new checks are not always done automatically, sometimes you have to call and request them.

insurance (of all types) is a shared risk. might as well accept it now. it's not changing.

 

https://www.tacomaworld.com/threads/ask-an-insurance-expert-the-insurance-non-bs-thread.620973/

 

Drop them like a hot potato. I've changed insurance companies at least half a dozen times. Currently, I am back with the one I started with as a teenager. You will save around $600.00 a year right off the bat. They can do whatever they want with the numbers. When the new insurer gets as high as the previous one, find another one. Loyalty to an insurance company doesn't mean squat to me. When I hear excuses like your getting older, it's an automatic inflation increase, rates are going up everywhere, Etc.....I'm gone.

 

+2. Look, insurance companies like all companies have to cover both operating costs and hold profit rates for their owners and investors. You need to shop for and get different insurance. Low customer churn in a for-profit enterprise means they can do what they want. In your case, raise your rates. Get new insurance, today.

 

When mine went up for no reason (Esurance), I was told it was a normal "market adjustment" increase. Meaning I guess that there are more idiots around me getting into wrecks and raising the cost of insurance for everyone.

 

Thanks for answering the tag!

Nothing like getting it straight from the source, IMHO. Thanks for sticking around!

BTW, you could paste your thread into your signature line- it'll show up in every post past, present and future..

 

ah, so i guess there really was a reason.

see my post above about this.

 

Geico is the only company I know of that increases rates based on non-moving violations. It’s ridiculous.

 

Texting drivers causing accidents and uninsured drivers ar making everyones rates go up. It sucks. NCDOI raised uninsured motorist on all policies in the state in 2017.

https://lipstoneinsurance.com/why-did-my-north-carolina-car-insurance-go-up/

Believe it or not $732 /half is less than alot of people are paying.
https://www.valuepenguin.com/cheapest-suv-auto-insurance

https://www.insure.com/car-insurance/insurance-rates-by-car.html