auto/home insurance rates

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Dmanse02
Posts: 29
Joined: Sat Dec 20, 2014 1:37 am

auto/home insurance rates

Post by Dmanse02 » Wed Sep 19, 2018 8:28 pm

curious to hear if people are having similar experiences with insurance companies. I have seen/heard the rule of thumb to shop quotes every 2-3 years. I wish I could make it that long with any one insurance company. Every time a renewal comes due, my rates increase 15-20% without any claims, accidents, traffic violations, etc. When I call to question these absurd increases for nothing I did, I get the same old spiel - "we have had more claims than expected, so we had to increase rates." I don't believe this for an instant given the intense mathematics behind the numbers. I shop, I get a much better rate, and move on. I suppose I fall for the bait as rates just seem to skyrocket when renewals come due. I have had different home/auto every year for the last 3 years. Is this an anomaly? Any insurance company recommended that doesn't do this? I could definitely expect and stay loyal to an insurance company for about a 2-3% increase every year, but 15-20% is outrageous.

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fortfun
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Re: auto/home insurance rates

Post by fortfun » Wed Sep 19, 2018 8:48 pm

Dmanse02 wrote:
Wed Sep 19, 2018 8:28 pm
curious to hear if people are having similar experiences with insurance companies. I have seen/heard the rule of thumb to shop quotes every 2-3 years. I wish I could make it that long with any one insurance company. Every time a renewal comes due, my rates increase 15-20% without any claims, accidents, traffic violations, etc. When I call to question these absurd increases for nothing I did, I get the same old spiel - "we have had more claims than expected, so we had to increase rates." I don't believe this for an instant given the intense mathematics behind the numbers. I shop, I get a much better rate, and move on. I suppose I fall for the bait as rates just seem to skyrocket when renewals come due. I have had different home/auto every year for the last 3 years. Is this an anomaly? Any insurance company recommended that doesn't do this? I could definitely expect and stay loyal to an insurance company for about a 2-3% increase every year, but 15-20% is outrageous.
Me too. Interestingly, my home owners (travelers) thru Geico did not increase. When I called travelers directly, it would have been 1k more than the same policy that I have with them through Geico (reseller). Strange... I have had to change every couple of years too.

spitty
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Re: auto/home insurance rates

Post by spitty » Thu Sep 20, 2018 7:57 am

"Price optimization"...I learned this game about 5 years ago; insurance companies are masters at it and why we have to regularly shop rates. It's illegal in some states. IWe've been with an indy broker since who (apparently?) shops rates yearly. He's had us with Safeco for 3 and they've bumped rates up only a very small amount.
@HelpingRhinos...1 rhino poached every 8 hours last year...501(c)(3)

Momus
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Re: auto/home insurance rates

Post by Momus » Thu Sep 20, 2018 8:04 am

I used to have mercury. What a mistake, it's cheap but I don't like price increases... Went from $35/mo to $55/mo liability only ins in a couple yrs with 0 claim.

https://www.valuepenguin.com/auto-insur ... california

Use that as a guide. I switched to AAA (auto club), got their roadside assistance + auto insurance for less total than what mercury charging (just auto), I've been happy since....

michaeljc70
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Re: auto/home insurance rates

Post by michaeljc70 » Thu Sep 20, 2018 9:37 am

Some insurance companies give you a new customer discount (labelled different ways) to make their rates appear cheaper than other companies and get you to switch to them. Eventually, the discount drops off and your rate is higher. Of course, there are regular rate increases too.

Then the multi-policy discounts are usually huge, so it is tough to justify going with the cheapest auto insurer and the cheapest home insurer.

If you have any tickets/accidents/claims, shopping around and getting a good rate becomes very difficult. Also, if you switch and then have an accident/claim, there is probably a bigger chance they will drop you compared to being with a company a long time. I'm not saying you shouldn't shop around and switch, but that is something to consider.

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jharkin
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Location: Boston suburbs

Re: auto/home insurance rates

Post by jharkin » Thu Sep 20, 2018 9:39 am

OP - where do you live ? (not specific, just the state or general region - Northeast, Southwest, upper Midwest, etc)?

The reason I ask is that I live in the Northeast and I never get these kinds of massive increases. Many of the members who have posted about this issue, turned out they live in an area that has suffered recent and repeated natural disasters, especially hurricanes and flooding - i.e. Florida, Texas, Louisiana,etc.

Insurance companies are paying out widespread and massive claims in these areas and most of the climate models predict that its only going to get worse, so the Ins co's have to factor this into their underwriting and recoup the costs somewhere.....

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dm200
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Re: auto/home insurance rates

Post by dm200 » Thu Sep 20, 2018 10:59 am

I/we have been with State Farm - auto 46 years and homeowners for 40. Very happy - premiums are low (compared to what I understand).

denovo
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Re: auto/home insurance rates

Post by denovo » Thu Sep 20, 2018 12:22 pm

Dmanse02 wrote:
Wed Sep 19, 2018 8:28 pm
curious to hear if people are having similar experiences with insurance companies. I have seen/heard the rule of thumb to shop quotes every 2-3 years. I wish I could make it that long with any one insurance company. Every time a renewal comes due, my rates increase 15-20% without any claims, accidents, traffic violations, etc. When I call to question these absurd increases for nothing I did, I get the same old spiel - "we have had more claims than expected, so we had to increase rates." I don't believe this for an instant given the intense mathematics behind the numbers. I shop, I get a much better rate, and move on. I suppose I fall for the bait as rates just seem to skyrocket when renewals come due. I have had different home/auto every year for the last 3 years. Is this an anomaly? Any insurance company recommended that doesn't do this? I could definitely expect and stay loyal to an insurance company for about a 2-3% increase every year, but 15-20% is outrageous.
You have to just deal with it and shop around. It's so easy to do these days online anyways. For auto insurance when you provide one name and address, they can even usually pull up the rest of the owners/cars on most websites. Anecdotally though, GEICO has been pretty stable.
"Don't trust everything you read on the Internet"- Abraham Lincoln

drawpoker
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Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: auto/home insurance rates

Post by drawpoker » Thu Sep 20, 2018 3:45 pm

spitty wrote:
Thu Sep 20, 2018 7:57 am
"Price optimization"...I learned this game about 5 years ago; insurance companies are masters at it and why we have to regularly shop rates. It's illegal in some states.....
Yes. But they are cunning about it, hiding their tracks, managing to stay under the radar of the regulators.

For ex: SnakeFarm indignantly proclaims we do not engage in price optimization! No way, that's terrible! But, when the policy-holders do a little digging, turns out they just call it by a different name - "Predictive modeling". Same thing.

Hartford, with their cozy "endorsement" by the "trusted AARP name", regularly snares the sr. citizens with lowball quotes for H.O. and auto, then sticks it to them good a few years later. Giant premium increases they know many will meekly accept since, unfortunately, too many sr. citizens are very gullible. Allstate rakes in money by deliberately overinflating the per sq. foot cost of rebuilding the dwelling. A homeowner who is ignorant of local building costs (this can easily be looked up) might not catch this, and end up needlessly paying several hundred dollars a year more.

When I wised up (also about 5 years ago) I also discovered that by shopping rates with the smaller lesser-known companies I could snare some very good premiums. For the very same coverage the Big Names were offering. Apparently, the smaller companies are able to do this by concentrating more on preferred risks than standard risks.

If you have a high credit score, no accidents or tickets, and no H.O. claims for like 10 or 20 years, would recommend you have indep brokers get quotes for you from these smaller companies.

kayakprof
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Re: auto/home insurance rates

Post by kayakprof » Thu Sep 20, 2018 5:45 pm

I have moved from FL, to GA to OH to NC to CO and MD over the past 15 years. I've stuck with State Farm the entire time. I bundle auto, home, boat, and any other insurance costs with them. I have experienced almost no increases over time, perhaps 2-3% per year. I have checked the market maybe every two years just to see if anyone can compete. Nope. Maybe it is because I haven't made any claims for any reasons? Any claims I would have made would have been lower than the high deductibles I keep.

drawpoker
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Location: Delmarva

Re: auto/home insurance rates

Post by drawpoker » Thu Sep 20, 2018 8:56 pm

kayakprof wrote:
Thu Sep 20, 2018 5:45 pm
.....Maybe it is because I haven't made any claims for any reasons? Any claims I would have made would have been lower than the high deductibles I keep.
I didn't have any claims either but SnakeFarm tried to pull their stunts on me. Over 40 years continuous on auto, 21 years on H.O.

Just how high are your deductibles? If you are up around $2,500-$5,000 range on H.O. coverage they may have looked at you already, decided there wasn't enough potential for more money to be made, and moved on to others.

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jeffyscott
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Location: Wisconsin

Re: auto/home insurance rates

Post by jeffyscott » Fri Sep 21, 2018 10:41 am

Dmanse02 wrote:
Wed Sep 19, 2018 8:28 pm
Every time a renewal comes due, my rates increase 15-20% without any claims, accidents, traffic violations, etc. When I call to question these absurd increases for nothing I did, I get the same old spiel - "we have had more claims than expected, so we had to increase rates." I don't believe this for an instant given the intense mathematics behind the numbers. I shop, I get a much better rate, and move on.
We had several years of smaller increases, but something like 20-25% this year from Amica. Shopped and ended up with about a 20-25% decrease instead and that was with a doubling of liability limits on cars and 60% lower deductible on the house. I guess that company magically did not have higher claims than expected, despite writing policies in the same state.

Edit:
I was curious and found I could still check what we were charged as far back as 2013 on the Amica site. I found that from 2013 to 2017 we actually had essentially no change at all for auto or homeowner's (we did bump deductible from $2500 to $5000, though). Umbrella went up 18% over those years, but total premiums for all coverages changed by a total of only 1-2% as a result. Then this year they wanted to jack auto up 18% and homeowner's by 24%, while umbrella had small increase for total combined rate increase of 19%, which became a decrease of 20% after shopping.
press on, regardless - John C. Bogle

annielouise
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Re: auto/home insurance rates

Post by annielouise » Fri Sep 21, 2018 11:16 am

spitty wrote:
Thu Sep 20, 2018 7:57 am
"Price optimization"...I learned this game about 5 years ago; insurance companies are masters at it and why we have to regularly shop rates. It's illegal in some states. IWe've been with an indy broker since who (apparently?) shops rates yearly. He's had us with Safeco for 3 and they've bumped rates up only a very small amount.
Lucky for you. Safeco increased our auto and umbrella over 10% this year. Homeowners was minor increase (inflation reasonable). Our indy broker was unable to get better quotes, but I'm sure that was due to frozen credit. Now that unfreezing is free, we will try again next time they come due (too much on our plates to do it now).

nc700
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Re: auto/home insurance rates

Post by nc700 » Thu Oct 11, 2018 1:59 pm

I'm in Charlotte North Carolina and I have Amica insurance for home and auto. My auto rate increased 19% this year. I've had no accidents or anything that would cause the increase. I called them to see if it was a mistake and they said rates had gone up to keep up with inflation. That's a pretty steep inflation rate !!!

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dm200
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Re: auto/home insurance rates

Post by dm200 » Thu Oct 11, 2018 3:09 pm

dm200 wrote:
Thu Sep 20, 2018 10:59 am
I/we have been with State Farm - auto 46 years and homeowners for 40. Very happy - premiums are low (compared to what I understand).
We now pay less than $500 per year for State Farm Homeowners and $70 per month for Sate Farm liability and un/underinsured motorist for two older cars and two older drivers.

Broken Man 1999
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Re: auto/home insurance rates

Post by Broken Man 1999 » Thu Oct 11, 2018 4:44 pm

dm200 wrote:
Thu Oct 11, 2018 3:09 pm
dm200 wrote:
Thu Sep 20, 2018 10:59 am
I/we have been with State Farm - auto 46 years and homeowners for 40. Very happy - premiums are low (compared to what I understand).
We now pay less than $500 per year for State Farm Homeowners and $70 per month for Sate Farm liability and un/underinsured motorist for two older cars and two older drivers.
You know, for the life of me I cannot understand why I can never get a competitive quote from State Farm. I have a ten year old van, we drive about 8.000 miles a year, I have lived in my current home since 1999, excellent credit, no at-fault accidents ever, and no accidents or homeowners claims at all for 15-20 years. Our one homeowner's claim was due to our home being burglarized.

I'm starting to get a complex! :confused

Good for you if you have State Farm. Could you put in a good word for me? :D

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

michaeljc70
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Re: auto/home insurance rates

Post by michaeljc70 » Thu Oct 11, 2018 4:54 pm

A lot of these quotes aren't really meaningful without location and home replacement cost. Obviously insuring a $1 million home in Miami and $250k home in Des Moines aren't the same.

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dm200
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Re: auto/home insurance rates

Post by dm200 » Thu Oct 11, 2018 4:56 pm

Broken Man 1999 wrote:
Thu Oct 11, 2018 4:44 pm
dm200 wrote:
Thu Oct 11, 2018 3:09 pm
dm200 wrote:
Thu Sep 20, 2018 10:59 am
I/we have been with State Farm - auto 46 years and homeowners for 40. Very happy - premiums are low (compared to what I understand).
We now pay less than $500 per year for State Farm Homeowners and $70 per month for Sate Farm liability and un/underinsured motorist for two older cars and two older drivers.
You know, for the life of me I cannot understand why I can never get a competitive quote from State Farm. I have a ten year old van, we drive about 8.000 miles a year, I have lived in my current home since 1999, excellent credit, no at-fault accidents ever, and no accidents or homeowners claims at all for 15-20 years. Our one homeowner's claim was due to our home being burglarized.
I'm starting to get a complex! :confused
Good for you if you have State Farm. Could you put in a good word for me? :D
Broken Man 1999
Maybe State Farm starts a little higher and then drops as you are with them for a time? How much higher is State Farm?

Wakefield1
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Re: auto/home insurance rates

Post by Wakefield1 » Thu Oct 11, 2018 7:19 pm

dm200 wrote:
Thu Sep 20, 2018 10:59 am
I/we have been with State Farm - auto 46 years and homeowners for 40. Very happy - premiums are low (compared to what I understand).
State Farm just lowered my (auto) premium a little bit (been with them for 17 or so years)
I think having a good Agent might have some bearing on the "price optimization" issue (or lack of it)

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ClevrChico
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Re: auto/home insurance rates

Post by ClevrChico » Thu Oct 11, 2018 7:27 pm

I'm an Amica customer. This year, one premium decreased and another increased. I'm happy.

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