Insurance rates skyrocketing in California

[Muse]

My policy is with Mercury. I posted my insurance agent yesterday about this time:

My auto insurance payment is due today. Looking at my data I see that they have been increasing my bill tremendously. My full payment (which I
paid) in April 2023 was $238.88. The next payment, which I paid October
2023 was 23% higher, at $293.88. The one they want me to pay by today is 18% higher than October's at $346.88. That's a 45% increase over one year! My driving record is spotless in every aspect. I have been driving well under 1000 miles/year. How is it they want me to pay ~$1.00/mile for insurance? I'm going to call you shortly.

His reply shortly thereafter:

I double checked your policy and you are receiving all of the same discounts. The annual mileage is estimated to be 671 which is the bottom price tier of zero to three thousand.

California is in a full blown crisis for both auto and property insurance presently. Every single carrier, not just yours, have taken hefty rate increases lately. And there is no "shopping around" like there used to be. Every other auto carrier we represent is closed for new clients. This includes Progressive, Travelers, Safeco, Nationwide (leaving California 9/1/2024) and Stillwater Insurance.

If I can think of anything to lower the price I will let you know. But for now, things are pretty grim.

 

[sdifox]

Full synthetic lightly run doesn't require change every 6 months.

You are still going to have water in it.

 

[WilliamM2]

You are still going to have water in it.

It's easy to see if it has excessive water in it. I wouldn't think condensation is a huge issue in his climate. Read the link, they tested for water content as well.

I've never had any oil related engine problems. In fact, in over 40 years of driving, I've never had any engine problems at all.

 

[repoman0]

Water burns out of motor oil by running the engine normally at operating temperature for 10-20 minutes. Nothing to worry about unless you only ever take really short trips.

 

[nakedfrog]

Insurance rates in WA have nearly doubled over the past two years.

Mine haven't with USAA... 12% increase from January 2022 to 2024.

 

[SteveGrabowski]

Yeah, that's a consideration. I drive so little and so well...

But, if I get in an accident, even if I'm not the least at fault and it's serious enough, I think I am obligated to share info about my insurance, no?

Could always go the Sopranos route

 

[GodisanAtheist]

Yep, California has the added benefit of its regulatory environment being somewhat stupid. Normally you get a 6.9% increase because 7% and above triggers a whole review process by the CADOI etc.

Well over Covid rate increases were paused (and refund checks were mandated) but labor and part costs skyrocketed.

Well, chickens and roosting and all of that. Now the Comish is oking 20%+ rate increases to stop companies from pulling out of the market.

Ricardo Lara is a fucking idiot, I would have voted for a Republican for CA insurance Comish but then the moron opined on his love of Donald Trump and went and lost my vote lickety split.

 

[manly]

Switch to a cheaper company... Or are you suggesting that the market isn't working?

I think OP and I have the same insurer, Mercury Insurance. I've shopped the rates once in a while, and they are actually a lot cheaper than the biggest names in the industry: State Farm and Allstate, for example. I don't think GEICO is less in California, but you have to compare to find out. The insurance market in California is actually probably "broken" to some degree, although supposedly it's a clusterfuck in Florida.

Mercury didn't club me with a 45% YoY increase, but IIRC it's nearly doubled over 7 years for my mom's 20 year old car (the YoY increase was about industry avg, 21%?). As the car gets older and older (historically that meant they'd get cheaper to insure, or at least not go up). What really annoyed me was they'd been jacking up the rate well before pandemic inflation (CAGR is well in excess of inflation). So I finally dropped collision and comp, which normally people drop at around the 10 year old mark. But used cars are holding value better, so it's a judgment call. My mom had a collision claim about 3 years ago and that was over $2k that they covered, and they've always been reasonable with claims for us.

@Muse there are some per-mile auto insurance companies out there. I've never priced it out, but I think it's safe to say it'd be cheaper than $800 annually for you. You have to plug a GPS device into your car's OBD2 port (okay, not sure if your clunker has that LOL, but maybe). I have no recommendations, but I've heard of Metromile. I've also noticed billboards that claim auto insurance for $1/day, but that's obviously targeted to low income households (that don't own a home). As a homeowner, you want liability closer to "full coverage" than to the state minimums.

I don't think it's bad advice to say stop driving and insuring a car, but you can't take your estate with you to the grave. If you're healthy and drive safely, I'd do that as long as you can afford to do so. I believe you shop at Costco, and unless you do that with a friend, I don't see how it's practical to use Uber for Costco runs. You have zero auto depreciation, so it's really just insurance, gas and basic maintenance. Is your freedom worth $1300 per year to you? I sorta feel that it is.

Yeah, that's a consideration. I drive so little and so well...

But, if I get in an accident, even if I'm not the least at fault and it's serious enough, I think I am obligated to share info about my insurance, no?

Aren't you a homeowner? Besides the ethical considerations, not having auto insurance would be insanely stupid.

 

[herm0016]

i changed companies this year in Colorado and saved about 30% on the total package. home, auto, umbrella, etc. our home owners rate had went up about 30 % and the auto doubled in the last few years with the old carrier. no claims. try a local broker.

 

[AdamK47]

My policy is with Mercury. I posted my insurance agent yesterday about this time:

My auto insurance payment is due today. Looking at my data I see that they have been increasing my bill tremendously. My full payment (which I
paid) in April 2023 was $238.88. The next payment, which I paid October
2023 was 23% higher, at $293.88. The one they want me to pay by today is 18% higher than October's at $346.88. That's a 45% increase over one year! My driving record is spotless in every aspect. I have been driving well under 1000 miles/year. How is it they want me to pay ~$1.00/mile for insurance? I'm going to call you shortly.

His reply shortly thereafter:

I double checked your policy and you are receiving all of the same discounts. The annual mileage is estimated to be 671 which is the bottom price tier of zero to three thousand.

California is in a full blown crisis for both auto and property insurance presently. Every single carrier, not just yours, have taken hefty rate increases lately. And there is no "shopping around" like there used to be. Every other auto carrier we represent is closed for new clients. This includes Progressive, Travelers, Safeco, Nationwide (leaving California 9/1/2024) and Stillwater Insurance.

If I can think of anything to lower the price I will let you know. But for now, things are pretty grim.

If it makes you feel any better, your payments for 6 months are lower than my payments for a single month in Ohio. Two cars. No accidents or any tickets.

 

[Muse]

I think OP and I have the same insurer, Mercury Insurance. I've shopped the rates once in a while, and they are actually a lot cheaper than the biggest names in the industry: State Farm and Allstate, for example. I don't think GEICO is less in California, but you have to compare to find out. The insurance market in California is actually probably "broken" to some degree, although supposedly it's a clusterfuck in Florida.

Mercury didn't club me with a 45% YoY increase, but IIRC it's nearly doubled over 7 years for my mom's 20 year old car (the YoY increase was about industry avg, 21%?). As the car gets older and older (historically that meant they'd get cheaper to insure, or at least not go up). What really annoyed me was they'd been jacking up the rate well before pandemic inflation (CAGR is well in excess of inflation). So I finally dropped collision and comp, which normally people drop at around the 10 year old mark. But used cars are holding value better, so it's a judgment call. My mom had a collision claim about 3 years ago and that was over $2k that they covered, and they've always been reasonable with claims for us.

@Muse there are some per-mile auto insurance companies out there. I've never priced it out, but I think it's safe to say it'd be cheaper than $800 annually for you. You have to plug a GPS device into your car's OBD2 port (okay, not sure if your clunker has that LOL, but maybe). I have no recommendations, but I've heard of Metromile. I've also noticed billboards that claim auto insurance for $1/day, but that's obviously targeted to low income households (that don't own a home). As a homeowner, you want liability closer to "full coverage" than to the state minimums.

I don't think it's bad advice to say stop driving and insuring a car, but you can't take your estate with you to the grave. If you're healthy and drive safely, I'd do that as long as you can afford to do so. I believe you shop at Costco, and unless you do that with a friend, I don't see how it's practical to use Uber for Costco runs. You have zero auto depreciation, so it's really just insurance, gas and basic maintenance. Is your freedom worth $1300 per year to you? I sorta feel that it is.

Aren't you a homeowner? Besides the ethical considerations, not having auto insurance would be insanely stupid.

Been with Mercury since around 2007.

Yeah, I've heard of those per mile companies, and checked out Metromile, used to get letters from them for a while. Wasn't sure how I liked the idea of a device attached to the car checking on me. My agent said, yes, I can get lower car insurance but I'd lose the discount I get for insuring my house and car together with them. So, I dropped the idea.

In the back of my mind was the fact that I had trouble getting my house insured outside of the California Fair Plan before I got on with Mercury. Not having central heating, was the issue. I still don't, but it's been getting warmer (!), and people say I should install a heat pump system. It's on my to-do list, don't know where I'm going to go with that.

Yeah, the freedom to have my car parked right next to the house is a big incentive. My mileage kind of sucks being around 20mi/gal., but I haven't been driving much. Electric is attractive for reduced carbon footprint and lower cost of gasoline + electricity, or just the cost of electricity.

 

[FelixDeCat]

Its not just CA its TX too. I posted in numerous threads that my car insurance premiums have gone up 63% over the last 3 years.

They wanted yet another 20% increase and this time I said fuck no.

I dropped full coverage (for now) and have just liability. My car is worth about $25,000 with the current miles, age and condition. Doing this dropped the renewal premium from $1,000 for six months to $355.

I still have uninsured motorist. I may re-add full coverage later. I saw a horrible accident today that gave me the chills!

One suspected culprit was insurers secretly gathering driving data. You have a credit score and soon you will need a driving score. This driving score is collected from that little shark fin antenna on newer model cars. It gathers data including speed, acceleration, travel distances, hard stops, etc. I had to cancel the connected features (which were free) to disable it.

 

[WilliamM2]

I dropped full coverage (for now) and have just liability. My car is worth about $25,000 with the current miles, age and condition. Doing this dropped the renewal premium from $1,000 for six months to $355.

I still have uninsured motorist. I may re-add full coverage later. I saw a horrible accident today that gave me the chills!

You're willing to risk $25,000 to save on insurance? I tried that once 30 years ago, though the car was only worth about $4K.

Got totalled the next month. I'm in a no fault state, so that was that. Saved me $75 on insurance though!

 

[WilliamM2]

Yeah, the freedom to have my car parked right next to the house is a big incentive. My mileage kind of sucks being around 20mi/gal., but I haven't been driving much. Electric is attractive for reduced carbon footprint and lower cost of gasoline + electricity, or just the cost of electricity.

Had to drive in town today. Had to stop at the store, then Walgreen's for prescriptions, the lab for annual blood tests, and finally dropped off recycling on the way home.

Total trip was 28 miles, and took just under 2 hours. Wonder what Uber would cost for that? I think I just paid for about 2 months of my "car expenses" at least.

As far as getting a new electric, you will never save enough in gas to make it worthwhile, especially with your low annual mileage. And if you think your insurance is high now...

 

[Drach]

E bike with pedals and a side car or trailer for the goods.

 

[AdamK47]

Could put the car under storage insurance when you know you won't be driving for long periods of time. That's what I do in the salty road months with my fun cars. Drops the monthly premium considerably.

That is if you own the car outright (like me). A bank won't let you do that since they technically own it.

 

[IronWing]

If it makes you feel any better, your payments for 6 months are lower than my payments for a single month in Ohio. Two cars. No accidents or any tickets.

I suspect the replacement costs for your cars are a wee bit higher.

 

[manly]

Been with Mercury since around 2007.

Yeah, I've heard of those per mile companies, and checked out Metromile, used to get letters from them for a while. Wasn't sure how I liked the idea of a device attached to the car checking on me. My agent said, yes, I can get lower car insurance but I'd lose the discount I get for insuring my house and car together with them. So, I dropped the idea.

In the back of my mind was the fact that I had trouble getting my house insured outside of the California Fair Plan before I got on with Mercury. Not having central heating, was the issue. I still don't, but it's been getting warmer (!), and people say I should install a heat pump system. It's on my to-do list, don't know where I'm going to go with that.

Yeah, the freedom to have my car parked right next to the house is a big incentive. My mileage kind of sucks being around 20mi/gal., but I haven't been driving much. Electric is attractive for reduced carbon footprint and lower cost of gasoline + electricity, or just the cost of electricity.

Fuel efficiency is irrelevant; you're spending like $200 on gas annually LOL. If carbon emissions bothers you, then you could find something like a 13 year old Prius to replace your old Mazda. Or alternately a first gen Nissan Leaf, but those have terrible range. But now you're spending money instead of saving money.

You're willing to risk $25,000 to save on insurance? I tried that once 30 years ago, though the car was only worth about $4K.

Got totalled the next month. I'm in a no fault state, so that was that. Saved me $75 on insurance though!

Penny wise, pound foolish. Felix is a Trump-tard, obviously.

 

[WilliamM2]

Fuel efficiency is irrelevant; you're spending like $200 on gas annually LOL. If carbon emissions bothers you, then you could find something like a 13 year old Prius to replace your old Mazda. Or alternately a first gen Nissan Leaf, but those have terrible range. But now you're spending money instead of saving money.

Any new car, gas, electric, or hybrid, will create more of a carbon footprint just from manufacturing, than he will driving his old car for decades. At his (or mine) rate of driving.

Used would be the best option there.

 

[zinfamous]

Get rid of your car. Uber or rent when you need one

this. you clearly don't need to won a car, OP. With what you're paying right now, it would cost you a fraction to just do a zip car once a month.

whoa, have you guys not heard of zipcar?

Instantly Book Rental Cars Near you | 24/7 Car Sharing | Zipcar

Find and unlock affordable rental cars on our app—with gas included. Car sharing membership plans start at $9.

www.zipcar.com

why all this uber recommendation? lol

 

[biostud]

My insurance company is member owned, which means that it is driven by a professional board, but surplus is paid back to the policyholders.

 

[Brainonska511]

this. you clearly don't need to won a car, OP. With what you're paying right now, it would cost you a fraction to just do a zip car once a month.

whoa, have you guys not heard of zipcar?

Instantly Book Rental Cars Near you | 24/7 Car Sharing | Zipcar

Find and unlock affordable rental cars on our app—with gas included. Car sharing membership plans start at $9.

www.zipcar.com

why all this uber recommendation? lol

Lots of options here for those that drive very little (somewhat dependent on where they are):

1) Walk/public transit
2) Bike (and get a rack/panniers and/or a trailer to help haul stuff)
3) E-bike (easier to haul stuff than #2 and less work to go further)
4) Uber/Lyft/local taxi company
5) Zipcar or other local car share
6) Dedicated rental car (ie, for trips over car share mileage limits or multiday journeys)

 

[FelixDeCat]

You're willing to risk $25,000 to save on insurance? I tried that once 30 years ago, though the car was only worth about $4K.

Got totalled the next month. I'm in a no fault state, so that was that. Saved me $75 on insurance though!

I know. I normally always have full coverage. I had a dream last night I was in an accident. Maybe it's my consciousness telling me to give in and pay.

I know it doesn't mean much, but I haven't been in an accident in 19 years. Imagine all the money I could have saved.

I've always had 100/300/100 liability mins for things like this.

 

[Brainonska511]

I know it doesn't mean much, but I haven't been in an accident in 19 years. Imagine all the money I could have saved.

Hindsight is 20/20, and past driving history doesn't indicate future driving incidents.

 

[Red Squirrel]

The infuriating part is the fact that the main reason we have to pay for insurance is because of other people's stupidities. I only have liability but it is a risk I'm taking because if some asshole damages my vehicle then it won't be covered. If I make a mistake then at least I can blame myself for it but I have no control over idiots who do idiot things.

I know someone who had a project car in his driveway, didn't have insurance because why pay an extra ~$100 per month on a car not being driven. Some asshole steals a Jeep and runs through a whole block of yards destroying people's property, and his car got hit too. Everyone was on the hook to deal with that, either going through insurance or out of pocket. It's BS that it works that way, we shouldn't have to be the ones responsible for damage caused by others, they should be the ones held accountable.