Car Insurance Rate Increase

Wife and I both drive 10 year old vehicles. We have had clean driving records for 9 years. Rates have hiked 30%. Who else is experiencing this?

Well, ya gotta pay for all those tornados, hurricanes and floods that damage vehicles in other parts of the country, ya know.

Same here. Both clean driving records and received a notice from Stare Farm of our rates going up. Called and politely asked for an explanation as to why and was essentially told our rates are going up because the cost to repair vehicles is going up. Lady on the phone said they can’t get caught up (still in the red) on homeowners policies because of all the severe weather the last couple years so I’m expecting to see that go up in the near future as well.

We have not gotten a recent renewal notice so I don’t know what ours will do but appears to be going up across the board.

https://www.kiplinger.com/personal-finance/car-insurance/car-insurance-costs-skyrocket-in-2024

I heard the same thing.

Car insurance and homeowners went up, a lot. I price check against some other providers and found the same coverage for quite a bit cheaper

I’ve had the same company for Home Auto and Life for 28 years. I was just informed they will no longer be writing new Home policies in MN. This was from a friend who is a retired insider, he says all agents in MN and WI are taking a nearly 50% cut in pay. It was suggested that I start shopping around soon, as some drastic changes will be taking place in the future.
My rates jumped enough this year for me to plan on making a change. The insurance company is blaming storms over the last few years for homeowner policy increases, as well as the dramatic cost of newer vehicles and the cost to repair them, for auto rate increases.

someone should make a post about something that has gone down in price since the pandemic?

My homeowners didn’t go up much. I just got the new annual statement.

My auto policy is renewed in June so I’ll be closely looking at it.

Seems ridiculous to increase someone’s premiums by a significant amount if they haven’t submitted a claim and they’ve been a loyal customer. I say charge the people who submit claims a higher amount, not everyone.

My boat policy was renewed in late December for 2024. That actually went down.

Ours is up over 20%. No claims no traffic tickets for years.
My wife called the agent and asked why.
Cars cost more to repair, parts and labor both cost more.
Damage from natural causes.
Auto theft, catalytic converter theft and other vandalism.

mojo wrote:

I’ve had the same company for Home Auto and Life for 28 years. I was just informed they will no longer be writing new Home policies in MN. This was from a friend who is a retired insider, he says all agents in MN and WI are taking a nearly 50% cut in pay. It was suggested that I start shopping around soon, as some drastic changes will be taking place in the future.
My rates jumped enough this year for me to plan on making a change. The insurance company is blaming storms over the last few years for homeowner policy increases, as well as the dramatic cost of newer vehicles and the cost to repair them, for auto rate increases.

I also heard insurance companies not writing new home owners policies as well as some companies (I believe smaller companies from Wisconsin) are dropping people from Minnesota. My agent claims in addition to the increase number of claims in Minnesota the last few years that in Minnesota we have some of the higher costs being charged for both home damage and auto collision repairs.

Too high for repair costs in Minnesota for the same services provided in other states? I do not know the reality of this and I can’t say that I have heard this before.

In the past I normally did not look closely at some of the documents sent from my home insurance company. I would recommend that you do. If your home owner rates have not went up then most likely your coverage was changed.

Thats why we have Justin at Woods and water insurance on here, he saved me $2400 leaving American Family who I had been with for 40 years.

I use Justin for my boat insurance. Can’t say enough good things about him.

Just curious is this a MN thing or bigger city change state farm on some of our auto and other things no change in cost in WI.

Mine has gone up only $2-5 per car per month the last couple renewals. My home insurance has gotten crazy though. Just shop around and switch, there’s no benefit to being a longtime customer but there’s always deals for new business.

Our car and farm insurance took a 30% jump so I checked other agents and they all came back with stay where we are and to check with them next year.

Do not be afraid to shop around. Most insurance companies count on loyal customers being too lazy, loyal, or indifferent to move on.

Brittman wrote:

Do not be afraid to shop around. Most insurance companies count on loyal customers being too lazy, loyal, or indifferent to move on.

Exactly! If you want to save money on insurance you have to shop around. It’s a pain but necessary to save $$$$

AARP notified me , going up 25 percent ! Everyone has cheaper rates but coverage was always less . I shopped a few years back is was the same across the board . Low ball rates until you look at line by line . State Farm has my boat , he said right now they all are raising rates .

Find an Independent insurance broker that represents many companies.
I switch either my auto or home insurance every year.
I call him up and ask him to find me a better deal with the same coverage. I might need to slightly raise my deductible but try not to do that to get a better rate.
I don’t do any of the work of shopping around. That’s his job.

gim wrote:

Seems ridiculous to increase someone’s premiums by a significant amount if they haven’t submitted a claim and they’ve been a loyal customer. I say charge the people who submit claims a higher amount, not everyone.

From what I have heard, most people either are dropped after a claim is made or move to a different company to find a lower rate after making a claim because their rate goes up. That only leaves the current customers to fork over the money to get the company back in the black.

Mine went up 30% so I called and told them they better figure something out or Im leaving. Wife and I have clean records and no claims and drive older vehicles. Came back the next day with a different quote from a new company $600 cheaper. Pays to shop around

There’s really x2 trains of thought with insurance.

1. Shop for the consistent, best rate and be willing to switch as needed with brokers or just by reaching out to different companies to run your rate information. You can definitely save money but have to do your homework.

2. Go the “loyalty” route and find an agent who will pick up the phone any time you call with answers and who knows your plan/s inside and out. This is not likely to be your cheapest route.

***I used to jump around quite a bit to save money. We’ve settled in with a local agent who we give all of our business to. We’ve got a boat, vehicles, equipment, tritoon, house, umbrella, life insurance, etc. with the same agent and our relatives who are in the same situation next to us through him as well. He knows we come as a package deal and that if one is disgruntled we are all leaving. Some of the farm rates are crazy expensive and relatively easy money for the agents. If I sent our agent a text, I’d have a detailed answer within 10 minutes….7 days a week (or he may just stop by in person). When there’s nearby hail or storm damage he’s sent me personalized messages telling me to go into the app and he’ll be sure to get someone out to our place FIRST before the wave of claims/inspections are requested. My brother hit a deer with a vehicle of mine and totalled it a few years back. I had a check in my hand for that vehicle x4 days later and never talked to a person on the phone or anything, he handled 100% of it. More expensive? Probably. Customer service has its price though.

gim wrote:

. I say charge the people who submit claims a higher amount, not everyone

The whole premise of insurance, is that the cost of a claim is shared by everyone equally.

Huntindave wrote:

The whole premise of insurance, is that the cost of a claim is shared by everyone equally.

Thats why its such a croc. Why should I have to pay for Joe blows accidents, and why should Joe blow have to pay for mine

Shopping around is always a good idea imo. My dad and brother have done the whole loyalty route by staying with the same agent and company but I think they are paying way more. We used to have the same agent as them but switched years ago and got better coverage for less. We asked if they could price match before we left but they said they couldn’t.

As to accident repairs going up that’s from all the newer vehicles with all the safety sensors as well as parts and labor rates going up. For example I’m doing a $1700 squirrel hit right now. It somehow took out the wave radar sensor that cost $665 as well as some bumper parts. I have also done $20k deer hits.

Jake D wrote:

<div class=”d4p-bbt-quote-title”>Huntindave wrote:</div>
The whole premise of insurance, is that the cost of a claim is shared by everyone equally.

Thats why its such a croc. Why should I have to pay for Joe blows accidents, and why should Joe blow have to pay for mine

Exactly. People who have accidents should be the one’s paying. Not the one’s who don’t submit claims. This isn’t obamacare for auto or home insurance.

gim wrote:

Exactly. People who have accidents should be the one’s paying. Not the one’s who don’t submit claims. This isn’t obamacare for auto or home insurance.

Ohbummer Care. Dont even get started on one of the biggest scams in history

LOL ya let’s not go down that rabbit hole.

If you never file a claim and are sick of high premiums, maybe consider a liability only policy?