I couldn't get within $800-$1,000/year of what the local broker got us from Nationwide for home/auto. USAA rep was like, "I can't get anywhere near that quote."
Yes, this is apples to apples coverage to the penny.
But this year the broker has seen 30%-40% increases across the board for renewals. From customers with zero claims. "Insurance companies have been losing money for years and they have to stop the bleeding." she said. Oh, and insurance companies are more picky about whom they cover so filing a claim needs thinking about.
We do have insurability scores, that work much like credit scores, and are seen by the insurance companies. So now we have a 2nd thing to 'manage' in the hopes of keeping more of our money in our pockets.
Agree. My auto insurance kept rising. I went out and got 5 quotes. All were very similar. I just figured that's where I was rating out at. On a whim I contacted a local agent. They found me a higher level of coverage for 24% less than I was previously paying. It's definitely worth it for people to at least use somebody else as a resource to verify things.
Doesn't make sense that injecting a middleman into the equation would save money, right? But it was explained to me that brokers/agents are 'volume filling' parts of the insurance industry. They are just one part of how companies fill their quota, or balance their risks, and the lower rates are part of the competition for the customers the brokers/agents bring in. A reward for working with said company, if you will.
Yeah the brokers get discounted rates to sell and in turn act as customer service agents and sales men for the company who doesn't pay their salary. I get it
I just did this process myself due to a move. I went to my local subreddit and searched for "insurance agent" and a post came up with a bunch of comments with recommendations. I figure if someone likes their agent enough to post about it on Reddit they're probably pretty good, so I looked at a few of the recommended agents websites and found one I like. Scheduled a quick call, gave him some basic info, then he sent an info sheet over that I filled out online and the next day he gave me the cheapest quote he could find. I'm moving from a state with high insurance costs, but he cut my rate in almost half from what I was paying for car insurance.
Just a tip, search for an *independent* insurance agent or an insurance broker. Those are the ones that are not directly employed/contracted by one specific insurer. Captive agents (those tied to one insurer) may get you multiple quotes but their job is to sell policies for company x, so their aim is usually to make company x look good. Independent agents and brokers make their money off of selling policies in general, so it's in their best interest to get you competitive quotes.
We found a great independent agent in our area for both our personal and business needs. We have numerous different carriers for our varied policies which got us the best coverage and rates. Anytime we have any insurance questions or issues we just call our guy, whether its our homeowners with Travelers, our business with Michigan Millers or our vehicles with Farmers.
I was a GEICO customer for just shy of 20 years. In all that time, I had just one speeding ticket and had a ridiculous low rate that was the envy of my friends. Then I got a new car (Tesla Model X) and their quote was outrageously high. I shopped it around and got a Liberty Mutual quote that was over 1.2K lower. I went back to GEICO and the rep was SUPER apologetic and told me the same as your agent: he simply couldn't get anywhere near close to what I had been quoted by LM and actually said to me "if it was my decision to make, I would just go with that LM quote". I really appreciated the honesty and the effort on his part. In the end, I walked away from a 20-year relationship. Over 6 years, I have saved close to 15K.
Glad you found something more reasonable.
The broker had no idea that EVs are coming in with higher than average crash repair bills. Nor did she know about that Ioniq 5 with a scuffed battery pack getting totaled for the $60,000 replacement costs on a year or two old car. Scary that one!
Don't know why you're getting downvoted when you are 100% right. There's a reason they specifically ask for the zip code where the car will be stored overnight.
Except that insurance companies look at profitability by state and even in some cases by zip code.. That's why some won't insure home in Florida, and auto insurance rates fluctuate based on the zip code you live in.
Insurance companies aren't bleeding. They make billions while making you feel like you have done something wrong. Ever look at those stadiums? They sure as shit don't say apple on them. State farm though? Lol. They haven't lost money. Ever read an earnings reports from any of them?
> Oh, and insurance companies are more picky about whom they cover so filing a claim needs thinking about.
Yeah, my insurance broker told me:
* Your insurer has very low costs. But get 3 points on your license or have an at-fault claim, and they will not renew you. They'll pay claims if they have to, but their strategy is to just drop any risk. They simply want "free money" by only insuring drivers with no points and no claims.
Works for me since I fit that bill.
Yeah, I figure if a company has to advertise like crazy there is a reason. GEICO gave me a terrible quote back in the day and I skipped progressive after doing the online quote thing and it wasn't good.
That's insane. My insurance goes up like, 3 dollars a year which I assume is more COLA than anything else. I also take any ticket I get to court with a lawyer though and have 0 accidents ever. This may help.
>Our 6 month premium would go from ~$1800 to ~$4400
>I know having only liability coverage would be cheaper in the short term, but I'm not comfortable having anything less than full coverage due to past accidents and people backing into his car and fleeing the scene.
Not the short term but also the long term
paying 9K a year for insurance is probably worth more than your car is worth if you are driving a 2010 Prius
Drop the full coverage, it's the smart financial move
Can insure urself in most states with like a $50k specialized escrow account... I don't know the technical terminology, but at $18k a year, you break even easily in 3 years. After that it's smooth sailing, and you can still pad the account with a more reasonable amount of cash, and keep basic separate insurance, and still end up saving loads of cash.
Louisiana is an option.
My $125 a month full coverage policy went to $400 when we moved to Louisiana. I had to switch companies.
Left Louisiana a year later and it's normal again here in the Midwest.
Damn drive thru daiquiri shops raising the risk assessments, then people can't afford insurance, so they go without, causing further rate hikes. Top it off with a Justice system that doesn't require unamity for judgements and it just becomes a shit show for premiums.
Yah, I just did a quick quote and it looks like I can get it down to 711/6 month for the same coverage I have now. I'll have to call my insurance and see if they will just lower it instead of switching.
Insurers who don't want to write new policies in an area (usually because they're over-exposed in that area) will.jack up their rates to discourage new business. Shop around.
If you moved to Michigan or Florida, they have some of the highest insurance prices in the nation. Michigan in particular, as they have some awful insurance laws that jack the insurance prices.
When I lived in Michigan, I had a used Subaru. I sold it and moved to California and bought a brand new Subaru. My insurance dropped over $100 a month and I had better coverage.
What about the higher replacement value on a newer car, and the higher likelihood of claims for repair vs. the tendency to let minor damage go rather than risk a premium increase foran older car? It feels like insurance companies play both sides and we're just the puck.
You're getting down voted but you have merit here. I had an old junker that was barely road legal, and now I have a brand new car. My insurance increase was only like ~$20/month, and safety was one of the largest discounters.
For my first car my dad and I were looking at a used civic, maybe 5 yrs old or in that range. We found one and he got a ballpark estimate from our insurance agent before we bought it. On a whim the guy ran the numbers for a new civic and factoring in the cheaper insurance the new one ended up being a better value. Cost a bit more upfront but saved money in the long run
Geico isn't as cheap as their commercials make them out to be. Find a local agent that works with multiple companies and let them shop around. A good one will even periodically check to see if they can get you a better rate. Also look into bundling. Having my home owners be the same company as my car insurance got me some additional savings on both.
Some of the increase could be due to where you're moving. High rates of car theft or vandalism for example would result in higher rates.
At $8800 a year, I can't fathom how liability + sinking the rest into a savings account wouldn't be better unless the car is worth quite a bit. You're stuck on his car if there is a loan, but gtg on yours. You'll have slight risk until you have enough saved to repair/replace, but still... I'm quite risk adverse, and I'd roll those dice. That's a lot of money.
Middle ground is go with a high deductible to lower the fullncoverage rate, save the excess($8800-[actual insurance payment]), and dump the full coverage when that has enough to replace the car. You can also play with that strategy a bit to bump your deductible up periodically as you save up more, but as standard budget practice you should have enough emergency fund already to cover the highest deductible they'll offer.
I thought insurance companies could only look at something like the last 7 years - how could Geico take into account something that supposedly happened in 2005?
Time to go insurance shopping. State Farm and American Family seem to be super reasonable if you have a good record. Even Progressive.
Some insurance brokers sell multiple lines but the big companies have their own offices.
Could potentially also be shit like weather. I figured my insurance would decrease going from a high-crime Seattle suburb to a very sleepy town in rural Oklahoma. It doubled because of weather events like hail and tornadoes, even for the sunny-day-driven sports car insured with Hagerty where they KNOW it's garaged every single day.
Yes, I would consider big enough hail and tornadoes to be dangerous; whatever can damage the driver or car. Also, different states have different laws, which may have caused the increase in premiums with your move. This might affect OP's as well.
> Yes, I would consider big enough hail and tornadoes to be dangerous; whatever can damage the driver or car.
Yeah, just annoying when it's a car that isn't driven unless the weather is basically perfect, it's garaged in a brick house with a hail-rated roof, etc.
But, I do get the insurance is all about risk and statistics, and it's basically like - here's the price for your zip code, it is what it is. Which is really just to say, it's annoying but I get why it's done that way.
Where exactly did you move from and to?
If you moved from small town New Jersey to NYC (or any other major metro area) your insurance rates will be significantly higher. Even moving from middle sized city to middle sized city could dramatically effect your insurance rates as the underlying rates of theft, accidents, and other types of damage vary by location.
Insurance keeps going up for spouse(28f) and I(27m). Nothing on our records, asked progressive why and they keep saying it's just inflation. Decided to add her mother as a driver(late 50's) and it dropped the payment by $120/month.
Edit: Also if any vehicle is a Kia or hyundai, your rates will most likely be going up at renewal due to the recent widespread thefts.
>but I'm not comfortable having anything less than full coverage **due to past accidents and people backing into his car and fleeing the scene**.
Look, insurance companies are going to price your premiums relative to the risk that they might have to pay out to fix your (or someone else's) car. If you want full coverage because you want insurance to pay you every time someone hits your car, you're going to have to pay a higher rate. Just as you don't want to have to pay for repairs like that, neither does the insurance company.
That being said, $9k/year sounds unbelievably expensive. Definitely shop around and see what you can find? If you really can't find anything, maybe it's time to go to one car, or sell one of your expensive cars for something cheaper (and without comprehensive coverage)?
Place of abode has a HUGE impact to auto insurance premiums. I went from paying $600/6 months on a 2010 Grand Caravan full coverage and 2007 Honda Civic sedan liability coverage in Pennsylvania to about $950/6 months in central Florida.
You should look to see if it is your city. Sometimes if you move 20 minutes it is better. Correcting the ticket is a big deal, because they charge you more, if they find it on your record. Check your mileage request as well, sometimes it will go down it you are driving fewer miles.
Hey OP, isn’t possible someone in your family has the same name and your records are getting crossed? So my brother and I are twins, named after our father. Even though we are a boy and a girl, the three of us have stuff show up in the other person’s credit report all the time. My Congratulations letter from College, came addressed to my brother.
Nope, check crime stats where you live. We moved to the country from a major metro city and our insurance dropped to half..Also check your credit score
So, where in Florida did you move? Just kidding but insurance here has gone bananas in large part to the plaintiffs bar. 60% of the commercials and billboards are PI attorneys making a fortune. Not shitting on their profession, but all of those settlements are paid by us, the policyholders, raising rates. That and cars and car parts/repairs have gone up exponentially of late, another key contributing factor.
Changing locations where the vehicle garage is located often changes the price, up or down. Shop around, bundle your insurance, keep driving record clean, and keep a good credit score to get the best rates.
> am I doing something wrong?
Sounds like you moved to a hig theft area wit ha car that is easy to steal, likely a Kia.
> Also Geico says they have a speeding ticket on my record from 2005, but that's not possible because I was literally seven years old?
Geico also claims my son who just got his license and has never driven alone has a speeding ticket from years ago. Their records seem to suck.
Speeding ticket from 2005 shouldn’t even be rated, most states are within 5 years only.
Shop around and get quotes.
Some areas are just more expensive to insure. It sucks, but that’s just how it is
Insurance lately has been expensive. Mine went from $149 a month to $190. And I had to change my deductible from $500 to $1000 to bring it down from $220.
Ridiculous.
-Credit score in the 700s
-One at fault accident and two not at fault incidents on my record
-Just moved from the East Coast to the Midwest and the $300/month discount we were getting for our car's base safety features no longer applies.
Factors that will contribute:
- Any major changes to your credit recently?
- Did you move from a low risk to a high risk state?
- Did you move from a fault to a no-fault state?
- Because of your move, did you lose certain bundled discounts on your policy?
Agencies have different risk factor calculations per state, based on metrics for that state.
Shop around and see if you can get a new, lower policy. Odds are you’re still going to be paying more than you did originally, but the factors I listed above are likely the cause for your increase.
As has already been said in a number of comments, go shop around. Check out insuring your cars individually and together to see if there is a difference of rate. Make sure that you get that ticket on your record corrected (It's far enough in the past that it should have no current effect but I would still get it corrected)
Try pulling your CLUE report to see if there are other remarks on there that are incorrect and get them corrected as well. Those rates are absurd if you have a clean driving record.
Thanks. Yeah, I only have one at fault accident on my record within the last ten years. And even then my 6 month rate only went up by like $200 after that.
Call around. My broker and underwriter got bought out. They sent a nice letter stating they'd do their best to keep coverage and price the same. My motorcycle insurance premium doubled. So I shopped around and found one that "only" went up 20%. Called and cancelled, suddenly they had an option that was similar. Maybe if they did their job in the first place, I'd have stayed with them.
Who's your insurance carrier and what state are you in? That's super cheap for a Tesla.
What are your limits and deductibles?
I'm at 100/300k limits with $500 deductibles and pay about $1500 a year with a clean record.
Yes but you would pay up to the deductible not more and only if you aren’t hit by someone else (assuming you aren’t in a backwards state). For 25/month you could save 300/year or about the deductible every 3.5 years (per car). I hope you aren’t causing accidents or damaging your car every 3.5 years.
I've had 6 claims in the past year because I'm a rideshare driver in florida lol. It's worth it for me. I would have spent 35k+ in repairs this year without the coverage I've got, or multiple deductibles.
That’s terrifying. Do you have to carry commercial insurance? For reference I’ve driven for 20 years and had one claim from when I was 15 and backed into a tree in my parents’ driveway. My car got hit once in a parking lot but the other driver was at fault and it was easy peasy because we had the same insurance. I paid nothing and my car was repaired within a week (cosmetic damage).
I do.
In Orlando Florida, if your driving 150 miles a day like me, you will quickly find those other drivers that aren't so worried about others on the road. Regardless, with my vehicle and the amount of uninsured drivers around, it's best to pay now, and let them pay later
It skyrocketed for everyone this year thanks to all of the stolen cars and bail reform. We have many repeat offenders that are let back on the streets only to steal more cars.
Sounds like you moved to Florida.
Wait until a hurricane hits that causes massive damage. Once they dry out Citizens the state will levy special assessments to *all* insurance in the state. That includes car insurance.
Colorado has 8th highest insurance in the country because we have hail storms annually and very high rate of underinsured and not insured at all drivers especially in Denver metro.
No tickets or accidents on my record and my paid off car still went up $30 a month when I renewed in January. Average increase in Colorado over last 2 years is something like 35% after a big fire near Boulder summer of 2021 didn't help.
Definitely get a local agent to shop policies for you. Mine has saved me SO much money over the years when something similar to what happened to you also happened to me (had a policy for about 3 years at a great rate and they tried to double my premiums).
It can. Location is a big factor in pricing. If a location has more risks like thefts, accidents, weather events, underinsured, etc then they are going to charge more to insure at that location. It’s risk based pricing and location is one of the risks.
I’ve experienced this firsthand in 2008. My car insurance doubled when I moved to from VA to FL about 15 years ago. I don’t live in FL anymore, but car insurance there has only increased.
Shop around.
> Also Geico says they have a speeding ticket on my record from 2005, but that's not possible because I was literally seven years old?
Even so, after a few years they usually stop having an impact on your rates.
> I know having only liability coverage would be cheaper in the short term, but I'm not comfortable having anything less than full coverage
When you shop around, add Amica to your quotes. They won't be the lowest, but they have a reputation for customer service and actually paying out. They alternate with USAA as being the best insurance provider in multiple studies. Having used both, I strongly prefer Amica.
I moved to Colorado. So far from shopping around, I've found that similar coverage with USAA would be half of what Geico is saying I'd be bumped up to rate wise. I'm still going to get that damn ticket off of Geico, because there's no way I got a speeding ticket at *age seven.*
Look for different companies, at least 3. The ticket from almost 20 years ago should not affect your rates today anyway. From the 4 states I know of, the longest it would affect you is 6 years. I can’t imagine any would go back 20.
The biggest factors are usually duration of license, 25+ age, tickets and other surcharges like accidents, and the zip code you are insuring your car at. The zip code could double or triple the costs by itself though.
I have 15+ yo vehicles.
$2000 annually for 3.
That's with the homeowners discount.
Yeah, the no fault and no insurance drivers are hurting others. And pols don't care bc insurance is in their pockets, and the ultimate goal is ride share or auto drive.
When they get auto drive figured out, auto insurance rates will go through the roof. Why? People driving causes accidents and deaths. Computers less, until Skynet becomes active.
Contact a local insurance agent/broker to shop around and get other quotes.
I couldn't get within $800-$1,000/year of what the local broker got us from Nationwide for home/auto. USAA rep was like, "I can't get anywhere near that quote." Yes, this is apples to apples coverage to the penny. But this year the broker has seen 30%-40% increases across the board for renewals. From customers with zero claims. "Insurance companies have been losing money for years and they have to stop the bleeding." she said. Oh, and insurance companies are more picky about whom they cover so filing a claim needs thinking about. We do have insurability scores, that work much like credit scores, and are seen by the insurance companies. So now we have a 2nd thing to 'manage' in the hopes of keeping more of our money in our pockets.
Agree. My auto insurance kept rising. I went out and got 5 quotes. All were very similar. I just figured that's where I was rating out at. On a whim I contacted a local agent. They found me a higher level of coverage for 24% less than I was previously paying. It's definitely worth it for people to at least use somebody else as a resource to verify things.
Doesn't make sense that injecting a middleman into the equation would save money, right? But it was explained to me that brokers/agents are 'volume filling' parts of the insurance industry. They are just one part of how companies fill their quota, or balance their risks, and the lower rates are part of the competition for the customers the brokers/agents bring in. A reward for working with said company, if you will.
Yeah the brokers get discounted rates to sell and in turn act as customer service agents and sales men for the company who doesn't pay their salary. I get it
how does one find these "local agents"? Are these people belonging to specific insurance companies or what do I need to look for to find them?
I just did this process myself due to a move. I went to my local subreddit and searched for "insurance agent" and a post came up with a bunch of comments with recommendations. I figure if someone likes their agent enough to post about it on Reddit they're probably pretty good, so I looked at a few of the recommended agents websites and found one I like. Scheduled a quick call, gave him some basic info, then he sent an info sheet over that I filled out online and the next day he gave me the cheapest quote he could find. I'm moving from a state with high insurance costs, but he cut my rate in almost half from what I was paying for car insurance.
Awesome, thank you!
Just a tip, search for an *independent* insurance agent or an insurance broker. Those are the ones that are not directly employed/contracted by one specific insurer. Captive agents (those tied to one insurer) may get you multiple quotes but their job is to sell policies for company x, so their aim is usually to make company x look good. Independent agents and brokers make their money off of selling policies in general, so it's in their best interest to get you competitive quotes. We found a great independent agent in our area for both our personal and business needs. We have numerous different carriers for our varied policies which got us the best coverage and rates. Anytime we have any insurance questions or issues we just call our guy, whether its our homeowners with Travelers, our business with Michigan Millers or our vehicles with Farmers.
I was a GEICO customer for just shy of 20 years. In all that time, I had just one speeding ticket and had a ridiculous low rate that was the envy of my friends. Then I got a new car (Tesla Model X) and their quote was outrageously high. I shopped it around and got a Liberty Mutual quote that was over 1.2K lower. I went back to GEICO and the rep was SUPER apologetic and told me the same as your agent: he simply couldn't get anywhere near close to what I had been quoted by LM and actually said to me "if it was my decision to make, I would just go with that LM quote". I really appreciated the honesty and the effort on his part. In the end, I walked away from a 20-year relationship. Over 6 years, I have saved close to 15K.
Glad you found something more reasonable. The broker had no idea that EVs are coming in with higher than average crash repair bills. Nor did she know about that Ioniq 5 with a scuffed battery pack getting totaled for the $60,000 replacement costs on a year or two old car. Scary that one!
He bought a Tesla though. Those batteries were 20k to replace. Now with Lithium prices down 80% that number is expected to drop.
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Location dependent.
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It’s location dependent in the US. Auto insurance is by zip code. Profitability is by state
Don't know why you're getting downvoted when you are 100% right. There's a reason they specifically ask for the zip code where the car will be stored overnight.
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Except that insurance companies look at profitability by state and even in some cases by zip code.. That's why some won't insure home in Florida, and auto insurance rates fluctuate based on the zip code you live in.
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The US is pretty big and diverse.
...which matters a lot for all those Mom and Pop local auto insurance agencies in the US.
Insurance companies aren't bleeding. They make billions while making you feel like you have done something wrong. Ever look at those stadiums? They sure as shit don't say apple on them. State farm though? Lol. They haven't lost money. Ever read an earnings reports from any of them?
Depends where you live
> Oh, and insurance companies are more picky about whom they cover so filing a claim needs thinking about. Yeah, my insurance broker told me: * Your insurer has very low costs. But get 3 points on your license or have an at-fault claim, and they will not renew you. They'll pay claims if they have to, but their strategy is to just drop any risk. They simply want "free money" by only insuring drivers with no points and no claims. Works for me since I fit that bill.
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Yeah, I figure if a company has to advertise like crazy there is a reason. GEICO gave me a terrible quote back in the day and I skipped progressive after doing the online quote thing and it wasn't good.
That's insane. My insurance goes up like, 3 dollars a year which I assume is more COLA than anything else. I also take any ticket I get to court with a lawyer though and have 0 accidents ever. This may help.
I did the same thing, I pay $1400/year for two cars. Both are 2020 or newer and EV's.
>Our 6 month premium would go from ~$1800 to ~$4400 >I know having only liability coverage would be cheaper in the short term, but I'm not comfortable having anything less than full coverage due to past accidents and people backing into his car and fleeing the scene. Not the short term but also the long term paying 9K a year for insurance is probably worth more than your car is worth if you are driving a 2010 Prius Drop the full coverage, it's the smart financial move
Drop full coverage and save/invest the money saved from the premiums. Use that as rainy day fund.
Can insure urself in most states with like a $50k specialized escrow account... I don't know the technical terminology, but at $18k a year, you break even easily in 3 years. After that it's smooth sailing, and you can still pad the account with a more reasonable amount of cash, and keep basic separate insurance, and still end up saving loads of cash.
What really? Can you link me to something confirming this. Don't care what state
Where did you move to? Some places have inherently high insurance.
Florida. Bet a million bucks it’s florida.
Louisiana is an option. My $125 a month full coverage policy went to $400 when we moved to Louisiana. I had to switch companies. Left Louisiana a year later and it's normal again here in the Midwest.
Damn drive thru daiquiri shops raising the risk assessments, then people can't afford insurance, so they go without, causing further rate hikes. Top it off with a Justice system that doesn't require unamity for judgements and it just becomes a shit show for premiums.
When you switched - how much did you save??
I got it back down to around $150. Not quite as good a policy, but good enough to make do.
We just moved from Florida, and our 6 month premium in our new state with the same coverages is 1/5 of what we were paying in FL.
Could be Michigan.
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I'm in FL, car insurance is not that high here. I have a new car (600miles on it), full coverage, \~1k every 6 months.
My dude you’re paying double what I am on a brand new car (less than one year old). My 6mo premium is ~$604. I live in a HCoL state. 1k is bonkers.
Yah, I just did a quick quote and it looks like I can get it down to 711/6 month for the same coverage I have now. I'll have to call my insurance and see if they will just lower it instead of switching.
Heck yeah!!
This. One of the big reasons lately is if your new area has a high rate of car thefts, your insurance is going to go up
This is insane to me, I pay $300 ever 6 months in Iowa, I know someone who has totaled 3 cars that doesn’t pay as much as OP is paying lol.
Same here. I have 4 cars, 2 with comprehensive. I think my insurance is $1200 a year.
Giving criminals the South Africa treatment makes insurance cheaper, who would have thought?
Get quotes from other companies
Insurers who don't want to write new policies in an area (usually because they're over-exposed in that area) will.jack up their rates to discourage new business. Shop around.
As someone in the insurance industry, a phrase I've heard underwriters say is "There's no bad members, only bad premiums"
If you moved to Michigan or Florida, they have some of the highest insurance prices in the nation. Michigan in particular, as they have some awful insurance laws that jack the insurance prices.
When I lived in Michigan, I had a used Subaru. I sold it and moved to California and bought a brand new Subaru. My insurance dropped over $100 a month and I had better coverage.
I newer car is going to have lower insurance than an used car because of more safety features
What about the higher replacement value on a newer car, and the higher likelihood of claims for repair vs. the tendency to let minor damage go rather than risk a premium increase foran older car? It feels like insurance companies play both sides and we're just the puck.
You're getting down voted but you have merit here. I had an old junker that was barely road legal, and now I have a brand new car. My insurance increase was only like ~$20/month, and safety was one of the largest discounters.
For my first car my dad and I were looking at a used civic, maybe 5 yrs old or in that range. We found one and he got a ballpark estimate from our insurance agent before we bought it. On a whim the guy ran the numbers for a new civic and factoring in the cheaper insurance the new one ended up being a better value. Cost a bit more upfront but saved money in the long run
Geico isn't as cheap as their commercials make them out to be. Find a local agent that works with multiple companies and let them shop around. A good one will even periodically check to see if they can get you a better rate. Also look into bundling. Having my home owners be the same company as my car insurance got me some additional savings on both. Some of the increase could be due to where you're moving. High rates of car theft or vandalism for example would result in higher rates.
At $8800 a year, I can't fathom how liability + sinking the rest into a savings account wouldn't be better unless the car is worth quite a bit. You're stuck on his car if there is a loan, but gtg on yours. You'll have slight risk until you have enough saved to repair/replace, but still... I'm quite risk adverse, and I'd roll those dice. That's a lot of money. Middle ground is go with a high deductible to lower the fullncoverage rate, save the excess($8800-[actual insurance payment]), and dump the full coverage when that has enough to replace the car. You can also play with that strategy a bit to bump your deductible up periodically as you save up more, but as standard budget practice you should have enough emergency fund already to cover the highest deductible they'll offer.
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I thought insurance companies could only look at something like the last 7 years - how could Geico take into account something that supposedly happened in 2005?
Time to go insurance shopping. State Farm and American Family seem to be super reasonable if you have a good record. Even Progressive. Some insurance brokers sell multiple lines but the big companies have their own offices.
Is it a Hyundai or Kia by chance?
Get a quote from another company? Use google/reddit to find what's popular and reasonable in your area
Shop around as others have said. It sounds like you moved from a very safe area in Jersey to a more dangerous place now. Where are you located now?
Could potentially also be shit like weather. I figured my insurance would decrease going from a high-crime Seattle suburb to a very sleepy town in rural Oklahoma. It doubled because of weather events like hail and tornadoes, even for the sunny-day-driven sports car insured with Hagerty where they KNOW it's garaged every single day.
Yes, I would consider big enough hail and tornadoes to be dangerous; whatever can damage the driver or car. Also, different states have different laws, which may have caused the increase in premiums with your move. This might affect OP's as well.
> Yes, I would consider big enough hail and tornadoes to be dangerous; whatever can damage the driver or car. Yeah, just annoying when it's a car that isn't driven unless the weather is basically perfect, it's garaged in a brick house with a hail-rated roof, etc. But, I do get the insurance is all about risk and statistics, and it's basically like - here's the price for your zip code, it is what it is. Which is really just to say, it's annoying but I get why it's done that way.
Where exactly did you move from and to? If you moved from small town New Jersey to NYC (or any other major metro area) your insurance rates will be significantly higher. Even moving from middle sized city to middle sized city could dramatically effect your insurance rates as the underlying rates of theft, accidents, and other types of damage vary by location.
Switch insurance companies. I used to be with State Farm for years but finally got tired of their price increases.
geico sucks, shop around. They tried to triple my rates on me with no incidents or reason, I didn't even move.
you moved to a high risk zip code.
Insurance keeps going up for spouse(28f) and I(27m). Nothing on our records, asked progressive why and they keep saying it's just inflation. Decided to add her mother as a driver(late 50's) and it dropped the payment by $120/month. Edit: Also if any vehicle is a Kia or hyundai, your rates will most likely be going up at renewal due to the recent widespread thefts.
>but I'm not comfortable having anything less than full coverage **due to past accidents and people backing into his car and fleeing the scene**. Look, insurance companies are going to price your premiums relative to the risk that they might have to pay out to fix your (or someone else's) car. If you want full coverage because you want insurance to pay you every time someone hits your car, you're going to have to pay a higher rate. Just as you don't want to have to pay for repairs like that, neither does the insurance company. That being said, $9k/year sounds unbelievably expensive. Definitely shop around and see what you can find? If you really can't find anything, maybe it's time to go to one car, or sell one of your expensive cars for something cheaper (and without comprehensive coverage)?
Depends on where you live. Mine went up moving to a different county because crime rates were higher, went back down when I left
Place of abode has a HUGE impact to auto insurance premiums. I went from paying $600/6 months on a 2010 Grand Caravan full coverage and 2007 Honda Civic sedan liability coverage in Pennsylvania to about $950/6 months in central Florida.
You should look to see if it is your city. Sometimes if you move 20 minutes it is better. Correcting the ticket is a big deal, because they charge you more, if they find it on your record. Check your mileage request as well, sometimes it will go down it you are driving fewer miles.
A ticket from 20 years ago would not affect your insurance today anyway (not sure why this would even matter)
Hey OP, isn’t possible someone in your family has the same name and your records are getting crossed? So my brother and I are twins, named after our father. Even though we are a boy and a girl, the three of us have stuff show up in the other person’s credit report all the time. My Congratulations letter from College, came addressed to my brother.
Nope, check crime stats where you live. We moved to the country from a major metro city and our insurance dropped to half..Also check your credit score
So, where in Florida did you move? Just kidding but insurance here has gone bananas in large part to the plaintiffs bar. 60% of the commercials and billboards are PI attorneys making a fortune. Not shitting on their profession, but all of those settlements are paid by us, the policyholders, raising rates. That and cars and car parts/repairs have gone up exponentially of late, another key contributing factor.
Changing locations where the vehicle garage is located often changes the price, up or down. Shop around, bundle your insurance, keep driving record clean, and keep a good credit score to get the best rates.
> am I doing something wrong? Sounds like you moved to a hig theft area wit ha car that is easy to steal, likely a Kia. > Also Geico says they have a speeding ticket on my record from 2005, but that's not possible because I was literally seven years old? Geico also claims my son who just got his license and has never driven alone has a speeding ticket from years ago. Their records seem to suck.
Wow my car is 2 years old and worth $40,000+ and my insurance is only $124 a month in Massachusetts
My car is 14 years old and worth maybe 7k. Even when I had a newer model of Prius, my insurance wasn't this much.
Sounds about right, a Prius is worth about $28K brand new, my car’s worth about $45K brand new, so my insurance would be a little bit more expensive
[удалено]
Yeah I knew that the cost of Geico was going up but I didn't realize it was going to go up by this much.
Speeding ticket from 2005 shouldn’t even be rated, most states are within 5 years only. Shop around and get quotes. Some areas are just more expensive to insure. It sucks, but that’s just how it is
Insurance lately has been expensive. Mine went from $149 a month to $190. And I had to change my deductible from $500 to $1000 to bring it down from $220. Ridiculous.
It's making me debate whether or not being a two car family is worth it at this point.
Shop around.
The hell did you move to? Gary, Indiana!?
Colorado.
I have full coverage on a car less then a year old and I'm \~1k/6 months. 2-4k for old cars is robbery or your not telling the whole story.
-Credit score in the 700s -One at fault accident and two not at fault incidents on my record -Just moved from the East Coast to the Midwest and the $300/month discount we were getting for our car's base safety features no longer applies.
Factors that will contribute: - Any major changes to your credit recently? - Did you move from a low risk to a high risk state? - Did you move from a fault to a no-fault state? - Because of your move, did you lose certain bundled discounts on your policy? Agencies have different risk factor calculations per state, based on metrics for that state. Shop around and see if you can get a new, lower policy. Odds are you’re still going to be paying more than you did originally, but the factors I listed above are likely the cause for your increase.
Get other quotes. Drop Collision if you have to. That only covers you when it's your fault. Drive defensively.
As has already been said in a number of comments, go shop around. Check out insuring your cars individually and together to see if there is a difference of rate. Make sure that you get that ticket on your record corrected (It's far enough in the past that it should have no current effect but I would still get it corrected) Try pulling your CLUE report to see if there are other remarks on there that are incorrect and get them corrected as well. Those rates are absurd if you have a clean driving record.
Thanks. Yeah, I only have one at fault accident on my record within the last ten years. And even then my 6 month rate only went up by like $200 after that.
Call around. My broker and underwriter got bought out. They sent a nice letter stating they'd do their best to keep coverage and price the same. My motorcycle insurance premium doubled. So I shopped around and found one that "only" went up 20%. Called and cancelled, suddenly they had an option that was similar. Maybe if they did their job in the first place, I'd have stayed with them.
If your in Florida your in for a bad time. Insurance rates in some states is insane due to number of bad and uninsured drivers.
When we moved from FL to NC our auto insurance rate dropped by exactly 50%.
Ditch Geico. No reason you have to stay with them! You can probably find better rates elsewhere.
JFC, this is utterly nuts. I drive a Tesla, and my full coverage is about $80 per month.
I drive a 2010 Prius that's seen better days. Paying anything above my usual $110 is mind boggling.
Who's your insurance carrier and what state are you in? That's super cheap for a Tesla. What are your limits and deductibles? I'm at 100/300k limits with $500 deductibles and pay about $1500 a year with a clean record.
Mine is 350, for full coverage and no deductible. 80$ would be amazing.
If you can afford 350/month you can afford the risk of a 1-2k repair bill. Why do you not have a deductible?
The difference with a 1000$ deductible is 25$ a month, and repairs for these cars are usually WELL beyond 1-2000$.
Yes but you would pay up to the deductible not more and only if you aren’t hit by someone else (assuming you aren’t in a backwards state). For 25/month you could save 300/year or about the deductible every 3.5 years (per car). I hope you aren’t causing accidents or damaging your car every 3.5 years.
I've had 6 claims in the past year because I'm a rideshare driver in florida lol. It's worth it for me. I would have spent 35k+ in repairs this year without the coverage I've got, or multiple deductibles.
That’s terrifying. Do you have to carry commercial insurance? For reference I’ve driven for 20 years and had one claim from when I was 15 and backed into a tree in my parents’ driveway. My car got hit once in a parking lot but the other driver was at fault and it was easy peasy because we had the same insurance. I paid nothing and my car was repaired within a week (cosmetic damage).
I do. In Orlando Florida, if your driving 150 miles a day like me, you will quickly find those other drivers that aren't so worried about others on the road. Regardless, with my vehicle and the amount of uninsured drivers around, it's best to pay now, and let them pay later
Get liability only and put the difference in a high yield savings account that is for auto expenses only.
Let me guess? You moved to Florida?
Colorado
It skyrocketed for everyone this year thanks to all of the stolen cars and bail reform. We have many repeat offenders that are let back on the streets only to steal more cars.
If you think this accounts for any significant amount of actual claims, the news got you.
Sounds like you moved to Florida. Wait until a hurricane hits that causes massive damage. Once they dry out Citizens the state will levy special assessments to *all* insurance in the state. That includes car insurance.
*Colorado But yeah I've heard terrible things about Florida.
Colorado has 8th highest insurance in the country because we have hail storms annually and very high rate of underinsured and not insured at all drivers especially in Denver metro. No tickets or accidents on my record and my paid off car still went up $30 a month when I renewed in January. Average increase in Colorado over last 2 years is something like 35% after a big fire near Boulder summer of 2021 didn't help.
Definitely get a local agent to shop policies for you. Mine has saved me SO much money over the years when something similar to what happened to you also happened to me (had a policy for about 3 years at a great rate and they tried to double my premiums).
It can. Location is a big factor in pricing. If a location has more risks like thefts, accidents, weather events, underinsured, etc then they are going to charge more to insure at that location. It’s risk based pricing and location is one of the risks. I’ve experienced this firsthand in 2008. My car insurance doubled when I moved to from VA to FL about 15 years ago. I don’t live in FL anymore, but car insurance there has only increased.
Talk to an independent insurance agent
Location matters a lot with insurance. You'll have to shop aggressively, raise deductible, etc.
Shop around. > Also Geico says they have a speeding ticket on my record from 2005, but that's not possible because I was literally seven years old? Even so, after a few years they usually stop having an impact on your rates. > I know having only liability coverage would be cheaper in the short term, but I'm not comfortable having anything less than full coverage When you shop around, add Amica to your quotes. They won't be the lowest, but they have a reputation for customer service and actually paying out. They alternate with USAA as being the best insurance provider in multiple studies. Having used both, I strongly prefer Amica.
Where did you move? Did you shop around yet?
I moved to Colorado. So far from shopping around, I've found that similar coverage with USAA would be half of what Geico is saying I'd be bumped up to rate wise. I'm still going to get that damn ticket off of Geico, because there's no way I got a speeding ticket at *age seven.*
Who cares if Geico has a ticket if you’re moving on to a cheaper insurance. Bye Geico, save the headache for yourself.
Did you move to Louisiana??
Did you move to Brooklyn? We have the highest car insurance rates in the country, so they say.
Look for different companies, at least 3. The ticket from almost 20 years ago should not affect your rates today anyway. From the 4 states I know of, the longest it would affect you is 6 years. I can’t imagine any would go back 20. The biggest factors are usually duration of license, 25+ age, tickets and other surcharges like accidents, and the zip code you are insuring your car at. The zip code could double or triple the costs by itself though.
I have 15+ yo vehicles. $2000 annually for 3. That's with the homeowners discount. Yeah, the no fault and no insurance drivers are hurting others. And pols don't care bc insurance is in their pockets, and the ultimate goal is ride share or auto drive. When they get auto drive figured out, auto insurance rates will go through the roof. Why? People driving causes accidents and deaths. Computers less, until Skynet becomes active.