Insurance rates increasing

[BarneyFife]

I thought after I hit the age of 25, that my insurance rates would start decreasing and they did. I bought a 2008 MKZ in January of 2008 and my insurance rate was around 780 for the year. Fast forward to today and I get my rates for next year, I'm at $922 a year. During this time, their has been no accidents, insurance claims filed, or tickets. I still have the same address. Why the 20% increase? Is everyone else having the same issues (people that are over 25)?

 

[StageLeft]

Find another insurance company. Many do increase just arbitrarily. Try geico or progressive or allstate until you get a better rate.

 

[Kroze]

that is still dirt cheap. I'm 26 y/o male without any accident history or ticket and mine is usually $1400-1600 depending on the car.

 

[vi edit]

I'm about ready to drop Allstate for another company. I've been with them for almost 16 years now and over the last 5 years my rates have gone up $5 a month or more without a single claim or incident.

 

[fstime]

Do people really stick with the same insurance company for their entire life?

You just bought a new car, OBVIOUSLY they are going to raise your rates.

The key is finding another insurance company so you can start a clean sheet and do this every 2 years, lowering it every time.

I have gotten my rates down to almost nothing and just pay off the whole year.

 

[TridenT]

Do people really stick with the same insurance company for their entire life?

You just bought a new car, OBVIOUSLY they are going to raise your rates.

The key is finding another insurance company so you can start a clean sheet and do this every 2 years, lowering it every time.

I have gotten my rates down to almost nothing and just pay off the whole year.

Learn to read? He bought the fucking car in 2008.

 

[CptCrunch]

Progressive did that to me, so I switched to Geico. Then I went to Grange (great company BTW) and it dropped by 20 every 6 months. If the rate every 6 months increases with no claims/tickets/etc on my part, I search for a new insurance company.

 

[waffleironhead]

they usually claim that the cost to insure a particular car changes over time based on claims

 

[fstime]

Learn to read? He bought the fucking car in 2008.

Your point? His policy was probably for a specific time period, afterwards which he got his new rate with a policy renewal.

 

[rh71]

much like many other things, they will raise your rates over time... the only way to keep competitive rates is to switch around every year and/or get them to price match. Dealing with this crap with my oil company right now.

 

[KentState]

Your point? His policy was probably for a specific time period, afterwards which he got his new rate with a policy renewal.

That's not how it works.

 

[StageLeft]

When you buy a new car the rate increase kicks in right away so if that was already built in the policy renewal is not in play now unless he had prepaid a year or something.

I'm with Geico right now. Allstate keeps sending me quotes because I have home insurance with them but they're all higher than geico.

 

[BarneyFife]

I tried pricing with Geico a couple years ago when I got my car and they were always way more than AAA in Michigan. I'm in the process of buying a house so I'm just going to wait until I get into my new address and see what happens.

 

[T2urtle]

i'm assuming the car you bought recently had a whole bunch of accidents happen hence the reason why the rates went up.

sadly you are paying for what other people do to the same car. i dont see a reason why such a car would do this but that would be a reason since you obviously didn't do anything to raise the rates.. do you have a 2nd car that you can compare to.

maybe crime rate in your area has skyrocketed.


for you guys who switch up insurance companies every 2-3 years to get the best rates, do you guys only switch up the auto insurance? We have homeowners, extra garage insurance for my tools, free life insurance and then 3 cars all under state-farm and they have given up a GREAT number of discounts. When we cross-shopped 3-4 years ago they were the lowest and well each year its just went down slighly or remain the same. We have no reason to go out and shop around but it might be interesting to see if i can save some more cash moving all the policies over or maybe just the auto.

 

[Yowen]

I know that in michigan, where I live, it went up, my buddy turned 25 and his went up too. And he didn't switch cars... Something we can thank Granholm for... I think its something to do with the recession and people just no buying insurance and just risking going without it, which is not very hard to do in a no-fault state. Some people actually buy insurance and when they get the piece of paper in the mail they cancel it and get their money back.

 

[superunknown98]

The same thing happened to me. I complained to my insurance agent and she tried to make some excuses. However, in NJ I know they can also base your rate on your credit score, which some states don't allow. I used to have Travelers and saved around 400 dollars a year after switching to progressive. Now progressive is raising my rates.

 

[Gibson486]

That's not how it works.

Yes it is. companies change methods of computing rates all the time. Your rate could go up for no reason at all. Geico does this alot. They give you this really low rate, but they slowly increase it after each renewel sometimes. If you get into an accident, your rate just explodes. What do they care if you leave? You already gave them your money. They will just lure other people in with really low rates. Everytime you are due for renewal, you should be shopping for insurance.