Vehicle Insurance Rate Increase

[19Sandy]

Just found out vehicle insurance rate is increasing, so I need to shop around for new insurance. Naturally, they sent this right before the holidays when it is nearly impossible to contact anyone in the local offices. Anyway, I have been with the same agent for over 30 years and with the same company for over 40 years. I never really shopped for insurance for vehicles because I just went with other family member's company and never changed. I hate doing this kind of stuff though. But got to see if there are better rates. I have to say, I have not moved or made any claims so the rate increase must be routine. However, the clerks in the insurance office are very very rude to me, and I not happy about that at all. Basically, you need to tape record what they say because they lie and give inaccurate information. I am not saying that a clerk should kiss my behind but honestly, they are just snarly. I had an incident a couple of years ago that made me consider a change but I didn't. I live in a rural area with no public transportation so having a vehicle is necessary. My vehicle is older and really, I think this rate is too high. I got a letter from another company that said it would perk me with free renter's insurance but haven't called about the rate yet. I don't know if shopping for insurance dings your credit or not but just a few dollars a month can make a huge difference in someone's yearly budget.

[Williamsmith]

Many insurance companies use existing records and collect data from computers on the web and feed this information into a program which predicts your tolerance to increased rates, what the maximum rate increase is you will absorb and still remian an insured. For instance, if you have been a dedicated customer for thirty years, this is a significant indicator to them that you will stay with them through significant increases. Likewise, if you have had the same credit cards it shows a certain character trait called loyalty. Apparently your loyalty score is high. There is no discount for loyalty. The agent representatives will tell you that since gasoline has become cheaper, Americans are driving more often and there are increases in accidents. Of course, this has nothing to do with you if you drive your vehicle less than 7,000 miles a year a do not have any claims........but they will have a few lines of bull crap to feed you.

So in fact, you can get the best rates by showing that you will not tolerate increases by shopping around. I was in the same circumstance having been a customer of Allstate Insurance for three decades and absorbed increases steadily even though I had no significant claims. I went to Traverlers and saved 30% with the exact same or nearly same policy protections.

Shop around.

[Tammy]

I cut our cost in half a few years ago by switching to Esurance.

And it is creeping up slowly again. They say it's because I had a low introductory rate the first year.

Switching is a pain so I wait until it's too high for my comfort ...

[Rogar]

By my account, cost is not the only factor to consider. Not all insurance companies are the same in terms of how easy they are to work with in case of a problem, or may raise rates in case of claims differently. Or even cancel a policy with certain claims. I would ask around among friends and family to check on the reliability of the different companies.

[Tenngal]

I was with Farm Bureau for 25 years and left because of the rising rates. Went to Allstate and have been very impressed with how easy they are to work with over claims. We had hail damage on all the cars and the roof. Because of rising prices, I got an estimate from Farm Bureau and they were low enough to interest me. I am thinking they give discounts to get us in the door, and then over the next few years we see their true cost.

[Simplygib]

I think pretty much all insurance companies raise rates on a regular basis. In the past I used to stay with one company for many years, but no more. It doesn't pay to do so. I was with Allstate for many years until their rates got ridiculously high so I started shopping around. Ended up saving about 40% if I remember correctly. I was with the new company for about 10 years and they, of course, did the same thing. Earlier this year I switched again.

This time I contacted a broker who did the shopping for me. Saved me a bundle. My annual premium went from $900 (with Liberty Mutual) to $394 (with Progressive) for the exact same coverage. And before my bi-annual premium was due with Progressive I got an e-mail from the broker saying they automatically evaluated my options and suggested I stay with Progressive for now. I like that.
Progressive's rate, however, has gone up $8 per year after just six months though.

I'd suggest you contact these folks and see what they can do for you. There's no cost to you - I assume they get a commission from the insurance company you end up going with: https://www.answerfinancial.com/

[rosarugosa]

OK, you folks have totally motivated me to do some rate shopping, since we're paying about $3000 for auto & HO ins, never put in claims, have high deductibles and have been with the same company for decades. Will report back on how it turns out!

[Rogar]

I was looking around to see if there was some valid comparisons on claims and customer complaints. There might be more information around, but this one source points out some significant differences. If a person never has claims it might not matter, but if that case is predictable maybe only minimal insurance is needed.
http://www.insure.com/best-car-insurance-companies/. There are several web sites that offer help on changing insurance companies. Some have some vested interests and some not, but I would maintain it's not all about cost. Here's just one. http://www.insurance.com/auto-insurance/car-insurance-comparison-quotes/5-ways-to-compare-car-insurance-companies.aspx

[19Sandy]

I planned to rate shop at the library today but spent the whole time trying to pay my phone bill online. Now, I have to figure out how to file a complaint against A T and T.

[19Sandy]

I think pretty much all insurance companies raise rates on a regular basis. In the past I used to stay with one company for many years, but no more. It doesn't pay to do so. I was with Allstate for many years until their rates got ridiculously high so I started shopping around. Ended up saving about 40% if I remember correctly. I was with the new company for about 10 years and they, of course, did the same thing. Earlier this year I switched again.

This time I contacted a broker who did the shopping for me. Saved me a bundle. My annual premium went from $900 (with Liberty Mutual) to $394 (with Progressive) for the exact same coverage. And before my bi-annual premium was due with Progressive I got an e-mail from the broker saying they automatically evaluated my options and suggested I stay with Progressive for now. I like that.
Progressive's rate, however, has gone up $8 per year after just six months though.

I'd suggest you contact these folks and see what they can do for you. There's no cost to you - I assume they get a commission from the insurance company you end up going with: https://www.answerfinancial.com/

That is a significant difference!

[rosarugosa]

Thanks for the links, Rogar. I agree that it will be important to keep quality in mind as well as price!

[Simplygib]

That is a significant difference!

Yes, it certainly is. I should have done it much sooner. From now on I will keep a closer eye on this.

I forgot to mention that the same broker also helped me with switching the fire insurance on an investment property I own. That annual premium went from around $700 to $368.

[iris lilies]

The carrier for our umbrella liability insurance require that we have housees and auto all with them. So, I dont shop,around because it would be more than one thing.

Is that a factor for anyone else in comparisoj shopping?

[sweetana3]

Same for us Iris Lilies.

[flowerseverywhere]

We review all of this at least every two years. Along with our phone/internet/cable rates and what we do with our health insurance options yearly. We have an umbrella, home and auto together but I still get quotes. Why not?

Also, when we moved to a new state we redid our wills, living wills and other legal paperwork. We asked lots of people for recommendations and made several calls for quotes. There were thousands of dollars difference in the quotes. And we went with big firms with a long time in business.

[Rogar]

The carrier for our umbrella liability insurance require that we have housees and auto all with them. So, I dont shop,around because it would be more than one thing.

Is that a factor for anyone else in comparisoj shopping?

That's me too, although I suppose a person could comparison shop for the whole package. I've had the same insurance company for 30 or more years. I seem to get discounts for safe driver, long time customer, and for bundling everything together. I don't know how much of this is marketing fluff just to keep me as a customer and maybe I could do better. Over the years I've had a handful of claims and it's always gone smoothly and without any rate increases from the claims, as far as I can tell. I've just casually compared rates with family and friends and mine seem in line.

[iris lilies]

We review all of this at least every two years. Along with our phone/internet/cable rates and what we do with our health insurance options yearly. We have an umbrella, home and auto together but I still get quotes. Why not?

Also, when we moved to a new state we redid our wills, living wills and other legal paperwork. We asked lots of people for recommendations and made several calls for quotes. There were thousands of dollars difference in the quotes. And we went with big firms with a long time in business.

Ah well, I should probably be doing that.

[rosarugosa]

I love this forum and wish to thank you all from the bottom of my heart. It looks like we're about to save $893 for slightly better coverage from an insurance carrier with a slightly higher rating on Rogar's link.
Rogar, We were getting all sorts of "discounts" too. We aren't getting all sorts of discounts with the new carrier, we're just saving $893 FREAKING DOLLARS! I would have to buy an awful lot of olives on sale to equal that kind of savings! :)

[Simplygib]

I love this forum and wish to thank you all from the bottom of my heart. It looks like we're about to save $893 for slightly better coverage from an insurance carrier with a slightly higher rating on Rogar's link.
Rogar, We were getting all sorts of "discounts" too. We aren't getting all sorts of discounts with the new carrier, we're just saving $893 FREAKING DOLLARS! I would have to buy an awful lot of olives on sale to equal that kind of savings! :)

Awesome, rosarugosa! A little shopping around really paid off!

[stopbeingdumb]

I'll bet if you let your current insurance agent know that you're shopping around he or she will be able to find you some cost reductions. Next time you call follow these steps:
1. Remind the clerks how long you've been a customer & tell them that you enjoy their services
2. Tell them your situation- rate is going up and you're considering switching to another provider.
3. Let them know that, since they are the current provider, you've decided to give them the first shot at re-earning your business.
4. As them what they can do about reducing your rate (don't ask "if" they can reduce your rate).
5. If they tell you there is nothing they can do, ask to speak with someone that might be able to reduce the rate- a supervisor or manager, etc. or the actual agent.

These same steps can be used when negotiating rates with cable providers, credit card companies, cell phone companies, and other insurance agencies.

Good Luck! Let us know how it goes