AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

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xerxes101
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AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sat Oct 20, 2018 11:54 am

Hi All,

Just opened the policy declaration for our home insurance, and I was really shocked to see a 47.8% rate increase :annoyed . I talked to them and they claim that this increase is due to "increased inflation rate" and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one .

What are my options?

1. I am considering increasing my deductible to max. that they offer: $5,000, thereby decreasing my rate.
2. Also considering getting multiple quotes from other home insurance companies.
3. AAA pulled the same thing with me with our auto insurance (substantial rate increase) and I switched and literally saved a $1000/year on our car insurance premium. AAA used to be a trusted name for me, but the more I do business with them the less I am convinced of that, especially because they market themselves as a "non-profit business", or at least they used to.

Any other thoughts or ideas on how to tackle this?

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goingup
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by goingup » Sat Oct 20, 2018 11:59 am

Start your quote shopping with the company you have auto insurance through. We get a good discount at USAA for having home, auto, life. It's called bundling.

shell921
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by shell921 » Sat Oct 20, 2018 12:24 pm

xerxes101 wrote:
Sat Oct 20, 2018 11:54 am
Hi All,

Just opened the policy declaration for our home insurance, and I was really shocked to see a 47.8% rate increase :annoyed . I talked to them and they claim that this increase is due to "increased inflation rate" and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one .

What are my options?

1. I am considering increasing my deductible to max. that they offer: $5,000, thereby decreasing my rate.
2. Also considering getting multiple quotes from other home insurance companies.
3. AAA pulled the same thing with me with our auto insurance (substantial rate increase) and I switched and literally saved a $1000/year on our car insurance premium. AAA used to be a trusted name for me, but the more I do business with them the less I am convinced of that, especially because they market themselves as a "non-profit business", or at least they used to.

Any other thoughts or ideas on how to tackle this?
AAA dropped me 2 years ago for home, earthquake and umbrella because I am in a wildfire area. Then they raised my auto insurance
from $800 a year to $1200 ! Because I am no longer a "multi-policy holder"! I have never had a ticket or an auto accident.
I had to go with Pacific Insurance for all but the auto. I stayed with AAA for the auto insurance but
I am shopping around.

Which auto insurance company are you now with?

Mr.Wu
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Joined: Mon Feb 27, 2017 3:02 pm

Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by Mr.Wu » Sat Oct 20, 2018 12:47 pm

No need to take it personally. This is how this business runs. Rates are adjusted periodically in response to change in premium and loss data. Just get quotes from other insurance companies and move on.

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dwickenh
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Location: Illinois

Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by dwickenh » Sat Oct 20, 2018 1:03 pm

They are likely doing you a favor as getting competitive bids will save you 10-30% in most bundling(auto and homeowners) cases.

congrats and good luck.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett


Rupert
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by Rupert » Sat Oct 20, 2018 2:40 pm

OP, AAA just dropped you without officially dropping you. In other words, they want you to find other coverage. You should accept their invitation and do so.

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F150HD
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by F150HD » Sat Oct 20, 2018 3:27 pm

xerxes101 wrote:
Sat Oct 20, 2018 11:54 am
...and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one .
Have you had claims in other years? That's kinda how that reads to me.

xerxes101
Posts: 68
Joined: Sat Oct 14, 2017 11:25 am

Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sat Oct 20, 2018 3:33 pm

F150HD wrote:
Sat Oct 20, 2018 3:27 pm
xerxes101 wrote:
Sat Oct 20, 2018 11:54 am
...and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one .
Have you had claims in other years? That's kinda how that reads to me.
I have not had any claims during the past 17 years, to be exact. The wording was mostly to underscore that I could see no justifiable reason for such a drastic rate increase.

xerxes101
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sat Oct 20, 2018 3:33 pm

Rupert wrote:
Sat Oct 20, 2018 2:40 pm
OP, AAA just dropped you without officially dropping you. In other words, they want you to find other coverage. You should accept their invitation and do so.
I like your mindset, thank you! :sharebeer

xerxes101
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sat Oct 20, 2018 3:34 pm

Rupert wrote:
Sat Oct 20, 2018 2:40 pm
OP, AAA just dropped you without officially dropping you. In other words, they want you to find other coverage. You should accept their invitation and do so.
I like your mindset, thank you! :sharebeer

xerxes101
Posts: 68
Joined: Sat Oct 14, 2017 11:25 am

Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sat Oct 20, 2018 3:36 pm

goingup wrote:
Sat Oct 20, 2018 11:59 am
Start your quote shopping with the company you have auto insurance through. We get a good discount at USAA for having home, auto, life. It's called bundling.
Yes, I am aware of bundling discount; however, the challenge is that I have my car insurance is with Geico and they do not offer home insurance in the state.

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c.coyle
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by c.coyle » Sat Oct 20, 2018 4:00 pm

OP, where are you located?
VTSAX - 40%, VTIAX - 10%, VBTLX - 50%

123
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by 123 » Sat Oct 20, 2018 4:01 pm

I can think of 2 possible things that could be responsible. Neither of these are the result of anything that you necessarily did. Has there been a significant decline in the credit rating of anyone named as an insured on the policy (fraudulent credit activity by someone else on a card could screw up a credit rating? Has there been nearby fire/flood/weather issues that could have caused the insurance company to adjust rates (nearby could be a couple of hundred miles away for some types of risks (hurricane))?

Edited to add:
If the residence is in California the insurance carrier could have re-evaluated the risk of loss due to fire after the heavy losses due to wildfires in the state in recent years. If one carrier increases rates after re-evaluating risks it is quite possible competing carriers will do so as well.
The closest helping hand is at the end of your own arm.

xerxes101
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sat Oct 20, 2018 4:23 pm

123 wrote:
Sat Oct 20, 2018 4:01 pm
I can think of 2 possible things that could be responsible. Neither of these are the result of anything that you necessarily did. Has there been a significant decline in the credit rating of anyone named as an insured on the policy (fraudulent credit activity by someone else on a card could screw up a credit rating? Has there been nearby fire/flood/weather issues that could have caused the insurance company to adjust rates (nearby could be a couple of hundred miles away for some types of risks (hurricane))?

Edited to add:
If the residence is in California the insurance carrier could have re-evaluated the risk of loss due to fire after the heavy losses due to wildfires in the state in recent years. If one carrier increases rates after re-evaluating risks it is quite possible competing carriers will do so as well.
No significant decline in my credit rating, my credit rating is in 800's.

Residence is in California, so maybe that is the reason.

Nate79
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by Nate79 » Sat Oct 20, 2018 7:45 pm

Get a local independant broker to shop around for all of your insurance needs.

Zott
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by Zott » Sat Oct 20, 2018 8:57 pm

xerxes101 wrote:
Sat Oct 20, 2018 3:36 pm
goingup wrote:
Sat Oct 20, 2018 11:59 am
Start your quote shopping with the company you have auto insurance through. We get a good discount at USAA for having home, auto, life. It's called bundling.
Yes, I am aware of bundling discount; however, the challenge is that I have my car insurance is with Geico and they do not offer home insurance in the state.
Geico doesn't underwrite home insurance in my state either, but through their brokerage I have Travelers which I've been happy with (so far). They give me the multi-line discount. Ask them what they can do for you, if anything.

typical.investor
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by typical.investor » Sat Oct 20, 2018 9:14 pm

Yikes, it seems kind of normal.

2017 saw an average of a 0.3% increase. Yet some customers saw from 47% to 75.5% to 91.3% increases. Others saw decrease of 27% or 28% or 29%.

https://www.valuepenguin.com/2017/10/20 ... california

Momus
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by Momus » Sat Oct 20, 2018 9:27 pm

xerxes101 wrote:
Sat Oct 20, 2018 3:33 pm
F150HD wrote:
Sat Oct 20, 2018 3:27 pm
xerxes101 wrote:
Sat Oct 20, 2018 11:54 am
...and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one .
Have you had claims in other years? That's kinda how that reads to me.
I have not had any claims during the past 17 years, to be exact. The wording was mostly to underscore that I could see no justifiable reason for such a drastic rate increase.
Have you had any increases the past 17 yrs? If not, that 50% increase is justifiable.

talzara
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by talzara » Sat Oct 20, 2018 9:38 pm

xerxes101 wrote:
Sat Oct 20, 2018 11:54 am
Just opened the policy declaration for our home insurance, and I was really shocked to see a 47.8% rate increase :annoyed . I talked to them and they claim that this increase is due to "increased inflation rate" and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one.
There are two AAAs in California. AAA SoCal has not increased its homeowners rates since 2015. AAA of Northern California increased its homeowners rates by 6.9% in February 2018. Since neither is close to the 47.8% rate increase that you saw, it has to be something specific to your policy.

However, your agent is not going to spend the time to figure out the real reason. After a 47.8% rate increase, they figure you're going to leave no matter what they do.

talzara
Posts: 624
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by talzara » Sat Oct 20, 2018 9:55 pm

Zott wrote:
Sat Oct 20, 2018 8:57 pm
xerxes101 wrote:
Sat Oct 20, 2018 3:36 pm
Yes, I am aware of bundling discount; however, the challenge is that I have my car insurance is with Geico and they do not offer home insurance in the state.
Geico doesn't underwrite home insurance in my state either, but through their brokerage I have Travelers which I've been happy with (so far). They give me the multi-line discount. Ask them what they can do for you, if anything.
GEICO doesn't underwrite homeowners insurance in any state. They sold off their unprofitable homeowners business in the 1990s. Since then, GEICO has only sold homeowners policies written by other companies.

GEICO's bundling discount is only 3%, so it often makes sense to buy your insurance directly from another company. You have to give up the bundling discount on both policies, but you might still save money that way.

MJS
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by MJS » Sat Oct 20, 2018 10:18 pm

I left AAA in September for CostCo's insurance affiliate (Ameriprise in my area). Saved $500 and got another 2% discount from using CostCo card to pay.

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mrc
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by mrc » Sun Oct 21, 2018 4:40 am

MJS wrote:
Sat Oct 20, 2018 10:18 pm
I left AAA in September for CostCo's insurance affiliate (Ameriprise in my area). Saved $500 and got another 2% discount from using CostCo card to pay.
This got me thinking about our insurance (auto, home, umbrella). So I went to the Costco/Ameriprise website and started with a home quote. I was surprised to be declined for coverage:
We are declining coverage because the fire protection for your home does not meet our underwriting requirements.
We have smoke detectors, fire extinguishers, but no sprinkler system. None of the homes around here of the same vintage (1987) have sprinklers! Very shocking. I had hopes of switching carriers from MetLife because of some rather hefty premium increases—no claims. I wonder if it has more to do with being father away from a firehouse than many, and with well/septic around here, no hydrants.
If it’s not long term it’s small talk

Eric76
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by Eric76 » Sun Oct 21, 2018 5:13 am

SpideyIndexer wrote:
Sat Oct 20, 2018 1:32 pm
Try Farmer's.
I've heard they know a thing or two about a thing or two.

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oldcomputerguy
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by oldcomputerguy » Sun Oct 21, 2018 6:12 am

SpideyIndexer wrote:
Sat Oct 20, 2018 1:32 pm
Try Farmer's.
+1. We've had our homeowners insurance with Farmers for thirty-seven years (the entire time we've been homeowners), and our drivers insurance for seven or eight years before that. Never had a problem with them.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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beyou
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by beyou » Sun Oct 21, 2018 7:48 am

With all the impactful hurricanes, forest fires, don’t be surprised if this is a trend. After Hurricane Andrew in early 90s, our rates in the northeast were raised significantly because of a hurricane in the southeast.

xerxes101
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by xerxes101 » Sun Oct 21, 2018 8:26 am

Momus wrote:
Sat Oct 20, 2018 9:27 pm
xerxes101 wrote:
Sat Oct 20, 2018 3:33 pm
F150HD wrote:
Sat Oct 20, 2018 3:27 pm
xerxes101 wrote:
Sat Oct 20, 2018 11:54 am
...and also "yearly rate adjustment" :shock:. I have not filed for any claims during the past year, and neither of those two reasons are convincing or reasonable to me, especially the first one .
Have you had claims in other years? That's kinda how that reads to me.
I have not had any claims during the past 17 years, to be exact. The wording was mostly to underscore that I could see no justifiable reason for such a drastic rate increase.
Have you had any increases the past 17 yrs? If not, that 50% increase is justifiable.
Oh definitely, I have had many increases over the years, are you kidding?

shell921
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by shell921 » Sun Oct 21, 2018 8:42 am

oldcomputerguy wrote:
Sun Oct 21, 2018 6:12 am
SpideyIndexer wrote:
Sat Oct 20, 2018 1:32 pm
Try Farmer's.
+1. We've had our homeowners insurance with Farmers for thirty-seven years (the entire time we've been homeowners), and our drivers insurance for seven or eight years before that. Never had a problem with them.
Have you ever had a TOTAL LOSS? After the 2007 wildfire that TOTALLY destroyed 1400 homes in San Diego County, the
3 worst insurance companies were All State, State Farm and Farmers. The 2 best were AAA and USAA. We went to a few fire victims
meetings and the people who were fighting with their insurance companies were insured by those 3 worst. They might be fine
for claims other than a total loss of your home and all possessions.

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oldcomputerguy
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by oldcomputerguy » Sun Oct 21, 2018 8:52 am

shell921 wrote:
Sun Oct 21, 2018 8:42 am
oldcomputerguy wrote:
Sun Oct 21, 2018 6:12 am
SpideyIndexer wrote:
Sat Oct 20, 2018 1:32 pm
Try Farmer's.
+1. We've had our homeowners insurance with Farmers for thirty-seven years (the entire time we've been homeowners), and our drivers insurance for seven or eight years before that. Never had a problem with them.
Have you ever had a TOTAL LOSS? After the 2007 wildfire that TOTALLY destroyed 1400 homes in San Diego County, the
3 worst insurance companies were All State, State Farm and Farmers. The 2 best were AAA and USAA. We went to a few fire victims
meetings and the people who were fighting with their insurance companies were insured by those 3 worst. They might be fine
for claims other than a total loss of your home and all possessions.

Nope, we've been fortunate and never have had a total loss. Closest we've ever come was a massive hailstorm that came through some years ago, pelted our vehicles, broke nine windows in the house, damaged our siding, and destroyed our roof. Farmers paid without a quiver, and did not raise our rates.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

shell921
Posts: 143
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by shell921 » Sun Oct 21, 2018 9:04 am

oldcomputerguy wrote:
Sun Oct 21, 2018 8:52 am
shell921 wrote:
Sun Oct 21, 2018 8:42 am
oldcomputerguy wrote:
Sun Oct 21, 2018 6:12 am
SpideyIndexer wrote:
Sat Oct 20, 2018 1:32 pm
Try Farmer's.
+1. We've had our homeowners insurance with Farmers for thirty-seven years (the entire time we've been homeowners), and our drivers insurance for seven or eight years before that. Never had a problem with them.
Have you ever had a TOTAL LOSS? After the 2007 wildfire that TOTALLY destroyed 1400 homes in San Diego County, the
3 worst insurance companies were All State, State Farm and Farmers. The 2 best were AAA and USAA. We went to a few fire victims
meetings and the people who were fighting with their insurance companies were insured by those 3 worst. They might be fine
for claims other than a total loss of your home and all possessions.

Nope, we've been fortunate and never have had a total loss. Closest we've ever come was a massive hailstorm that came through some years ago, pelted our vehicles, broke nine windows in the house, damaged our siding, and destroyed our roof. Farmers paid without a quiver, and did not raise our rates.
I'm glad you have never lost everything and I hope you never do !

I was wrong - there were 1600 homes lost in 2007 [ not 1400 ] :

http://articles.latimes.com/2008/oct/23 ... erinsure23


https://www.kpbs.org/news/2017/oct/18/2 ... nged-thei/

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oldcomputerguy
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Re: AAA Insurance is increasing my home insurance premium by 47.8%!!! with no claims filed

Post by oldcomputerguy » Tue Oct 23, 2018 5:55 am

oldcomputerguy wrote:
Sun Oct 21, 2018 6:12 am
SpideyIndexer wrote:
Sat Oct 20, 2018 1:32 pm
Try Farmer's.
+1. We've had our homeowners insurance with Farmers for thirty-seven years (the entire time we've been homeowners), and our drivers insurance for seven or eight years before that. Never had a problem with them.

Bad form to reply to myself, I know...

I was informed last night by DW that I made an incorrect assumption in this post, namely that "Farmers" was the same outfit as the one through which we had our insurance, which is in fact the local "Farm Bureau". I had seen the ads on TV and never thought much about it, just assumed that "Farmers" was the same as "Farm Bureau", but apparently not. We've been very happy with our coverage at "Farm Bureau". We have our auto and homeowners there, and are about to do an umbrella policy with them.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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