Large Auto Insurance Increases Coming

[3feetpete]

I just got my GEICO invoice and it had a 20% increase. I am interested to hear what others are experiencing. I think most insurance companies will be increasing their fees a lot. Due to:

-Used car prices are way up making payouts higher
-The cost to repair cars has gone up.
-The lack of repair parts has mean it takes more time to get a repair done and this means rentals will be longer
-Rental rates have gone way up
-Medical costs have gone up

[susa]

We insure several cars on Progressive. All late models and all rates same or less than last year. Premium paid Feb 2022

[Makefile]

I haven't (yet?) had 20% but it goes up every year for sure.

In addition to what you mentioned, the deterioration in driving habits since the pandemic has set back crash statistics by 15 years or so. An interesting counterpoint to the "teenager needs car" threads where some urge all the latest safety features as if a 2017 Accord is a Model T. Arguably, the safety features could even be one of the causes due to "risk compensation" ("I have automatic emergency braking so I can tailgate"). Of course I refer to the features intended to prevent crashes; post-crash features (airbags) of course are needed more than ever.

Another factor that gets mentioned is that due to the increase in sensors on cars due to all the new features, classic fender benders like a dented bumper become some invasive repair to fix all those electronics.

There were some comments at the 2021 Berkshire Hathaway annual meeting that Progressive had a period of better matching rates to risk, and that GEICO was in catch-up mode. Particularly mentioned was telematics, so maybe that's an avenue to explore on your policy to try and get the rate under control.

[arf1410]

My Geico Auto (WA STATE) was up 40% , and homeowners, similar, because of law change stating I would no longer get preferential rates based on my good credit score. So I switched both auto and home, and got back down to what I was paying in 2020.

[Broken Man 1999]

Farmers bought out MetLife Auto last year. Just got my Farmers renewal for 3/2022 -3/2023. Up 5.85% from 3/2021-3/2022.

Still a little lower than 3/2020-3/2021.

Not as bad as I was expecting.

Broken Man 1999

[Longdog]

Agree on your first two points. Don’t agree on points 3 and 4, since insurance companies limit the duration (e.g., 30 days) and daily allowance (e.g., $20/day) for rental vehicles during a repair, so whether they go up in price does not equate to insurance companies paying out more. On point 5, I’m sure medical costs have gone up - not sure if they’ve gone up at faster rate this year than in past years. So, sure, auto insurance rates will likely go up. Probably more than they have been, all else being equal. They’ll go up even faster for higher risk drivers.

BTW, I didn’t experience this at all when I renewed about a month ago.

[willthrill81]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

[Lmf1171]

Just got our renewal forms and the auto rate is exactly the same as last year for the same coverage.

Homeowner's is also about the same. I think it went up less than $20 for the year. And our umbrella policy went from $153/yr to $70. Very happy with Erie!

[JoMoney]

My GEICO auto insurance premium just decreased $1.40 relative to the last 6 month period, the prior period was down $1.30 relative to the period prior that, relative to the period prior that it was relatively up because of a COVID rebate in mid-2020.
Relative to my premium for the same coverage 3 years ago, my rate is down about 6%. I don't carry comprehensive/collision, and my liability/medical coverage is a fixed $ amount that hasn't changed.

[Boatguy]

Some insurance companies are quicker to react to increasing trends than others. Once they do react, they have to file their proposed rates with each state and then, in many cases, await approval. Many states are intentionally moving very slowly through the approval process, and at least one very large state flat out told insurers that they will not approve any increases at the present time.

Physical damage (Comprehensive and Collision) is what’s killing insurers, so it’s related to used car prices, labor rates, and parts prices. Also, slow repair times due to a lack of skilled labor and parts supplies is driving up rental days, which is a big insurer expense.

[Metsfan91]

Renewed recently. AAA. Lexis Nexis score went up. Premium went down by about 20%. Big surprise!!! Totally unexpected.

[furwut]

It wouldn’t be unusual for businesses, in a time of inflation, to try to tack on a little extra price increase for more profit.

[MilleniumBuc]

I think like any other insurance product, it depends on user and location.

Just received my progressive auto insurance renewal and it went up $27 for the next 6 month period with pay in full discount. It’s a 3.1% increase from Sept 2021. The previous one was $67 increase for an 8.4% increase and probably accounted for the fast rise in used vehicle prices. Good thing that auto insurance is one of the quickest to quote and change.

[sailaway]

I have never had Geico for two years straight because they always go up so much.

My rates with Progressive were slightly down when I renewed in January.

[Escapevelocity]

I just got my Geico renewal notice and it came in approx. 10% lower than prior one. We have been using the DriveEasy telematics program on our phones and this saved us a chunk (our scores are very high on their grading system). Only one of our 4 vehicles is carrying collision coverage, so maybe that's why we escaped the inflation monster.

[CaptainT]

Call them. I have had good luck in past getting my rates lowered by calling and politely but firmly asking and letting them know you are willing to switch to their most disliked competition

[stoptothink]

We insure several cars on Progressive. All late models and all rates same or less than last year. Premium paid Feb 2022

Our premium from Progressive is due March 1st. It went up ~20% with no changes on our end. I did get quotes and Progressive is still nearly 50% cheaper for us than anybody else.

[fortunefavored]

I just did my massive tedious requote process across several mainline carriers and a couple brokers.

Auto insurance +4.2% (same coverage levels.)

But my vehicles are 5 to 10 years old and I don't drive much. I imagine a fancy new car is more expensive.

[retiringwhen]

Renewed recently. AAA. Lexis Nexis score went up. Premium went down by about 20%. Big surprise!!! Totally unexpected.

What is a Lexis Nexis Score? I have gotten a report, but never saw a score.

[PatrickA5]

Just got renewal from State Farm for next 6 months. Down 5.65%. 2021 vehicle.

[jebmke]

My USAA renewal for 2/22-8/22 is down 3% from last six months. I don't have any records before that.

[BruDude]

My GEICO policy just renewed with no increase

[pizzy]

Comparing rates without comparing coverages/vehicles is an exercise in futility

[bob60014]

Just renewed my Geico policy, went from $249 to $251......I'm furious!!

[mmmodem]

I think insurance companies are like cable companies. They lure you in with low introductory rates. The next year, they raise prices significantly and expect enough of us to sign on again due to inertia. Some do, some don't. I've had premiums with more insurance companies than I can count.

Last year, I switched to Geico because they gave me the better rates than Liberty Mutual. This year, I switched away from QBE which last year gave me the best rates. One year, I stayed with Hartford because their increase was too low for me to bother switching. And despite what any CSR, online article, or BH member speculates the reason, prices go up with no rhyme or reason and strikes some premiums or people harder than others.

[chuckwalla]

I renewed my Geico auto last month, and it was down a few bucks compared to the previous 6-month premium.

[SilverSmurfer]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

I'm selling my Rav4 Prime for more than I paid for it last June. We also claimed the $7500 tax credit.
I think that will offset any increase to auto insurance. We'll also be down to one car for a few months, while awaiting a fairly priced replacement.

"inflation doesn't matter" if you can adapt your spending to accommodate (I know that not everyone can)

[retiringwhen]

I think insurance companies are like cable companies. They lure you in with low introductory rates. The next year, they raise prices significantly and expect enough of us to sign on again due to inertia. Some do, some don't. I've had premiums with more insurance companies than I can count.

Last year, I switched to Geico because they gave me the better rates than Liberty Mutual. This year, I switched away from QBE which last year gave me the best rates. One year, I stayed with Hartford because their increase was too low for me to bother switching. And despite what any CSR, online article, or BH member speculates the reason, prices go up with no rhyme or reason and strikes some premiums or people harder than others.

You can find a good local market insurance company that keeps customers long-term by having consistently low rates. In New Jersey, NJM (New Jersey Manufacturers) is a good example.

I have shopped them many times, and competitors could hardly ever beat their rates. This is for family with good driving records and combined rates for home, auto, umbrella. Bundled discounts make a huge difference.

OTOH, my son's experience after he moved out with a very bad driving record was the opposite. It paid for him to move carriers every 6 mos. There was a willing market to undercut high risk policy rates! Progressive, Liberty, etc. all wanted his business!

[Broken Man 1999]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Could be that auto insurance is a negligible percentage of their expenses. It is for DW and I. We are insuring a 2008 E150 van.

Broken Man 1999

[willthrill81]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Could be that auto insurance is a negligible percentage of their expenses. It is for DW and I. We are insuring a 2008 E150 van.

Broken Man 1999

That's irrelevant to whether inflation impacts one's auto insurance premiums.

[jebmke]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Could be that auto insurance is a negligible percentage of their expenses. It is for DW and I. We are insuring a 2008 E150 van.

Broken Man 1999

That's irrelevant to whether inflation impacts one's auto insurance premiums.

I may be wrong but I think Broken was referring to "matter." As far as I can tell, a significant number the "inflation doesn't matter" folks don't deny that inflation exists, they are more speaking to whether it impacts their behavior. You can't really say "x" doesn't matter if you deny that "x" exists.

[willthrill81]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Could be that auto insurance is a negligible percentage of their expenses. It is for DW and I. We are insuring a 2008 E150 van.

Broken Man 1999

That's irrelevant to whether inflation impacts one's auto insurance premiums.

I may be wrong but I think Broken was referring to "matter." As far as I can tell, a significant number the "inflation doesn't matter" folks don't deny that inflation exists, they are more speaking to whether it impacts their behavior. You can't really say "x" doesn't matter if you deny that "x" exists.

There are certainly some in the 'inflation doesn't matter' camp who literally believe precisely that. Those are the the ones to whom I am referring.

Auto insurance is only one of many spending categories that are impacted by inflation, and as I pointed out, there's little to be done to avoid it.

[jebmke]

There are certainly some in the 'inflation doesn't matter' camp who literally believe precisely that. Those are the the ones to whom I am referring.

by "just that" do you mean it doesn't exist or doesn't affect them? It doesn't have the same affect on me as many and it doesn't affect my behavior but I don't deny it exists and affects others.

[willthrill81]

There are certainly some in the 'inflation doesn't matter' camp who literally believe precisely that. Those are the the ones to whom I am referring.

by "just that" do you mean it doesn't exist or doesn't affect them? It doesn't have the same affect on me as many and it doesn't affect my behavior but I don't deny it exists and affects others.

They believe that it has no impact on them (i.e., their financial situation).

[Grasshopper]

I just renewed with Progressive and 6 month renewal went up $10. I in fact was surprised because we had a $500 windshield replaced at no cost since our last renewal.

[Broken Man 1999]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Could be that auto insurance is a negligible percentage of their expenses. It is for DW and I. We are insuring a 2008 E150 van.

Broken Man 1999

That's irrelevant to whether inflation impacts one's auto insurance premiums.

Honestly, I assumed you would know that inflation certainly impacts one's auto insurance premiums. I never thought otherwise.

I thought you might instead inquiring about the experiences of the "inflation doesn't matter" crowd, since you seemed to wonder if they somehow could avoid buying auto insurance, or just not drive at all?

Broken Man 1999

[tortoise84]

At every renewal, I always get online quotes from at least these three companies: Progressive, Geico, esurance, and go with the cheapest. But I also get a new quote from the insurer I'm already with because they may offer discounts for 'new' customers. Once, Progressive sent me a renewal for $618 (2 x 2012 cars, 250k/500k/100k, no uninsured, no comp/collision), but when I got a quote as a new customer it was $540, so I cancelled the renewal and went with the new policy. I also did their Snapshot driver monitoring program and on the next renewal it went down to $467.

[willthrill81]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Could be that auto insurance is a negligible percentage of their expenses. It is for DW and I. We are insuring a 2008 E150 van.

Broken Man 1999

That's irrelevant to whether inflation impacts one's auto insurance premiums.

Honestly, I assumed you would know that inflation certainly impacts one's auto insurance premiums. I never thought otherwise.

I thought you might instead inquiring about the experiences of the "inflation doesn't matter" crowd, since you seemed to wonder if they somehow could avoid buying auto insurance, or just not drive at all?

Broken Man 1999

I was being facetious and thought that was obvious. If one drives at all, then one is impacted to some extent by inflation, and the 'inflation doesn't matter' folks are wrong.

[Steelersfan]

Erie Insurance, 2014 Corolla, single senior driver, premium increased $13.00 in the bill I received two days ago. 2.0%

[plutoblackhole]

While I don't use Geico, as I understand it, owning just one share of BRK.B gives you an 8% discount on car insurance. Might help someone.

[TropikThunder]

At every renewal, I always get online quotes from at least these three companies: Progressive, Geico, esurance, and go with the cheapest. But I also get a new quote from the insurer I'm already with because they may offer discounts for 'new' customers. Once, Progressive sent me a renewal for $618 (2 x 2012 cars, 250k/500k/100k, no uninsured, no comp/collision), but when I got a quote as a new customer it was $540, so I cancelled the renewal and went with the new policy. I also did their Snapshot driver monitoring program and on the next renewal it went down to $467.

I’m considered a “poor risk” if I use Snapshot or similar trackers. I work evenings at a hospital, and I’d have to speed to get home before 11:00 pm when the “dangerous late night driving” penalty kicks in. They count the entire trip as high-risk if any of it occurs between 11:00 pm and 5:00 am. Apparently 11:01 pm and 2:00 am when the bars close have the same risk profile.

[beardsicles]

Where are the 'inflation doesn't matter' folks in these threads? Can they somehow avoid buying auto insurance, or do they just not drive at all?

Actually yeah. I've been combing through our finances for signs of inflation and wasn't seeing anything. But it turns out it's basically invisible to us since we don't eat meat, don't rent, and don't drive much. The only place we're seeing any inflation is in heating.

[dm200]

I just got my GEICO invoice and it had a 20% increase. I am interested to hear what others are experiencing. I think most insurance companies will be increasing their fees a lot. Due to:

-Used car prices are way up making payouts higher
-The cost to repair cars has gone up.
-The lack of repair parts has mean it takes more time to get a repair done and this means rentals will be longer
-Rental rates have gone way up
-Medical costs have gone up

Our auto insurance renewal just came in the mail for mid March and was just about the same premium as six months ago. We have State Farm.

[tj]

Farmers bought out MetLife Auto last year. Just got my Farmers renewal for 3/2022 -3/2023. Up 5.85% from 3/2021-3/2022.

Still a little lower than 3/2020-3/2021.

Not as bad as I was expecting.

Broken Man 1999

Are your policies the former Metlife policies or were you already with Farmers?

[UALflyer]

Call them. I have had good luck in past getting my rates lowered by calling and politely but firmly asking and letting them know you are willing to switch to their most disliked competition

Auto insurance rates are all regulated, so there's no such thing as premium negotiations. This isn't your cable provider or your cell phone provider, which offer retention rates. With auto insurance it doesn't matter if you threaten to leave and it doesn't matter whether you'd be switching to "their most disliked competition."

Having said that, it never hurts to have your insurance company go over the policy to see if they've opened up another program/insurance pool that would save you money. This just doesn't have anything to do with any threats to take your business elsewhere.

[tj]

Call them. I have had good luck in past getting my rates lowered by calling and politely but firmly asking and letting them know you are willing to switch to their most disliked competition

Auto insurance rates are all regulated, so there's no such thing as premium negotiations. This isn't your cable provider or your cell phone provider, which offer retention rates. With auto insurance it doesn't matter if you threaten to leave and it doesn't matter whether you'd be switching to "their most disliked competition."

Having said that, it never hurts to have your insurance company go over the policy to see if they've opened up another program/insurance pool that would save you money. This just doesn't have anything to do with any threats to take your business elsewhere.

And certainly compare the cheaper quote to what was originally quoted, I'd hate for someone to think they are saving money when in reality they are just reducing their coverage.

[UALflyer]

I think insurance companies are like cable companies. They lure you in with low introductory rates. The next year, they raise prices significantly and expect enough of us to sign on again due to inertia.

A ton of insurance companies do not have new customer discounts. Those that do only offer small new customer discounts. So, this is a completely different situation from that of cable companies, where with cable your non-promo rates are way more expensive.

There are a few insurance companies out there that use price optimization (your rates are set higher if the insurance company thinks that you're less likely to switch to another company), but this doesn't have anything to do with low teaser rates that you're talking about. Regardless, most insurance companies out there do not use price optimization (and a few states have banned the practice outright).

Last year, I switched to Geico because they gave me the better rates than Liberty Mutual. This year, I switched away from QBE which last year gave me the best rates. One year, I stayed with Hartford because their increase was too low for me to bother switching.

Keep in mind that with a number of insurance companies, your history of frequent switching will actually prevent you from qualifying for the best rates.

[SlowMovingInvestor]

I just got my GEICO invoice and it had a 20% increase. I am interested to hear what others are experiencing. I think most insurance companies will be increasing their fees a lot. Due to:
...
-Rental rates have gone way up

Rental rates had gone up a LOT last year, they seem to have gone back to mostly normal now although there will be local spikes certainly if there's a lot of summer travel.

My GEICO policy renewal just came, up around $25, but it's not strictly comparable because I got a ticket that would show up this period .

[Broken Man 1999]

Farmers bought out MetLife Auto last year. Just got my Farmers renewal for 3/2022 -3/2023. Up 5.85% from 3/2021-3/2022.

Still a little lower than 3/2020-3/2021.

Not as bad as I was expecting.

Broken Man 1999

Are your policies the former Metlife policies or were you already with Farmers?

I was with MetLife Auto for several years, now my policy is thru Farmers due to the buy-out. Farmers is also writing homeowners policies in Florida.

Broken Man 1999

[anon_investor]

Farmers bought out MetLife Auto last year. Just got my Farmers renewal for 3/2022 -3/2023. Up 5.85% from 3/2021-3/2022.

Still a little lower than 3/2020-3/2021.

Not as bad as I was expecting.

Broken Man 1999

That is good to know, my Farmers (formerly MetLife) auto insurance renews in April.