Massive insurance premium increase

[noobzilla]

40% increase for my 2013 Mazda and 50% increase for my Lucid. What the heck!? Anyone else got massive insurance increase?

From Wawanesa.

"The cost of providing insurance coverage has increased significantly since we last increased rates for all our customers in
2018. This is due to a variety of factors:
- Serious injuries resulting from accidents have increased 12%, impacted by increased speeds
- The cost to repair vehicles (including parts & labor) has increased 40%
- The cost of replacing used vehicles when totaled has increased 60%
- The cost of medical claims has increased 55%"

What I have now

Next month

 

[lsbuffs]

My renewal six month premium from Progressive on my Lucid is up 52.5%, from $720 to $1,098, $1,000 deductibles, $0 glass. Premium on my wife's 2012 BMW went up 50%.

 

[noobzilla]

My renewal six month premium from Progressive on my Lucid is up 52.5%, from $720 to $1,098, $1,000 deductibles, $0 glass. Premium on my wife's 2012 BMW went up 50%.

Looking like industry-wide rate increase. Let's see what others say.

 

[xponents]

I mean, it does make sense considering the economy. I do believe that electric cars should have a lower premium because they have almost no maintenance. (on the other side though, they are easy to get totaled)

 

[noobzilla]

I got a quote from Geico right now for $1475 total for similar coverage total for both cars. VS $2400

 

[lsbuffs]

I just did a quote through Geico. After I changed their default coverage to match my Progressive policy (e.g. full glass, $1,000 deductibles), it came in at $1,725.75 for the Lucid and BMW. This compares to the $1,608 I'm paying for Progressive. Geico offered a $172.56 for full payment, while Progressive provided a $243 discount for paying in full (which I take advantage of).

So in my case, Geico was 7.28% higher than Progressive when paying monthly, and 13.79% higher when paid in advance.

 

[Tim-in-CA]

Try connect by amfam (Costco insurance). $800/6 mo for my Lucid and Model S. 500 collision and 100 comp

 

[lsbuffs]

Try connect by amfam (Costco insurance). $800/6 mo for my Lucid and Model S. 500 collision and 100 comp

Just pulled them up. Old school, looks like you have to phone. May try it when I have time, thanks for the suggestion.

 

[noobzilla]

Try connect by amfam (Costco insurance). $800/6 mo for my Lucid and Model S. 500 collision and 100 comp

The Costco Insurance Agency, Inc., is currently not offering new auto or home insurance policies in California. Please check with other agencies and carriers serving California or ask friends and family for recommendations.
Sad face

Gonna try Progressive now.

 

[noobzilla]

Progressive is higher than Wawanesa for me. Looks like I will go with Geico

 

[noobzilla]

Went ahead and signed up for Geico. The rate will be $100 lower than my current pre-50% increase auto insurance. Geico doesnt bundle home and auto. I'll stay with Wawanesa. It will go up $215 from $735 to $950. Overall ~$765 difference every 6 months. Geico says it takes up 15 business days. Hopefully they don't revise and increase it by 50% lol

 

[Bobby]

I mean, it does make sense considering the economy. I do believe that electric cars should have a lower premium because they have almost no maintenance. (on the other side though, they are easy to get totaled)

Insurance rates have nothing to do with the economy. Rates are based on the cost of the car, the cost of repairs (which is way up lately), liability history in that particular type or model of car, driver history, driver age, demographics, location, etc.
I’m not sure why you think electric car should have lower insurance because they have no maintenance… Insurance does not cover maintenance.

 

[xponents]

Insurance rates have nothing to do with the economy. Rates are based on the cost of the car, the cost of repairs (which is way up lately), liability history in that particular type or model of car, driver history, driver age, demographics, location, etc.
I’m not sure why you think electric car should have lower insurance because they have no maintenance… Insurance does not cover maintenance.

By "maintenance," I mean in the event that your engine for a gas car blows, they will have to replace that. As far as I am aware, electric cars have far lower complexity(?), and if you did a 100 person sample and tallied up the cost for gas cars vs ev car failures, I think the gas car group will cost more.
Also as you said, economy is not DIRECTLY related to insurance rates but it affects many factors that DO affect insurance rates.

 

[Rogue]

Insurance rates have nothing to do with the economy. Rates are based on the cost of the car, the cost of repairs (which is way up lately), liability history in that particular type or model of car, driver history, driver age, demographics, location, etc.
I’m not sure why you think electric car should have lower insurance because they have no maintenance… Insurance does not cover maintenance.

Bobby, I have to politely disagree. The current state of the economy drove used and new car prices up. Your rate is in large part affected by the value of your car. If the value of your car is high and depreciates slowly, then rates will remain high.

There's also the risk management portion for insurance companies. If insurance companies are finally re-assessing their inventories as a whole, comprised of customer cars, then that would surely drive them to increase rates to cover and compensate from old model predictions (where cars typically depreciate, not hold value or even go up in value).

I've heard rumblings that mainly deal with older cars (typically bottomed out in depreciation). Those are most likely the most affected by current supply and demand. They may even be playing around with new models that are not handling the current car market conditions and Tesla price slashing madness plus government incentives plus wild west standoff between legacy carmakers scrambling to hold onto record high profits.

I like most of us though don't work in the insurance field. The closest claim I can make is central banking. The problems are similar, though not exact by any means.

 

[Snafu]

I'll be watching to see if/what any increases in USAA insurance, especially since I was in an accident (AGT) last November (not at fault)l The total repair cost would have bought me a new Pure, with several options added in.

 

[Steveinarizona]

40% increase for my 2013 Mazda and 50% increase for my Lucid. What the heck!? Anyone else got massive insurance increase?

From Wawanesa.

"The cost of providing insurance coverage has increased significantly since we last increased rates for all our customers in
2018. This is due to a variety of factors:
- Serious injuries resulting from accidents have increased 12%, impacted by increased speeds
- The cost to repair vehicles (including parts & labor) has increased 40%
- The cost of replacing used vehicles when totaled has increased 60%
- The cost of medical claims has increased 55%"

What I have now
View attachment 12979


Next month
View attachment 12980

Biggest increase, by far, is collision. We have seen in this forum how expensive it is to repair a Lucid and the insurance companies are probably just catching up with that.

 

[Bobby]

Bobby, I have to politely disagree. The current state of the economy drove used and new car prices up. Your rate is in large part affected by the value of your car. If the value of your car is high and depreciates slowly, then rates will remain high.

There's also the risk management portion for insurance companies. If insurance companies are finally re-assessing their inventories as a whole, comprised of customer cars, then that would surely drive them to increase rates to cover and compensate from old model predictions (where cars typically depreciate, not hold value or even go up in value).

I've heard rumblings that mainly deal with older cars (typically bottomed out in depreciation). Those are most likely the most affected by current supply and demand. They may even be playing around with new models that are not handling the current car market conditions and Tesla price slashing madness plus government incentives plus wild west standoff between legacy carmakers scrambling to hold onto record high profits.

I like most of us though don't work in the insurance field. The closest claim I can make is central banking. The problems are similar, though not exact by any means.

Thanks for the info. My post was directly from my son-in-law's answer. He is an actuary for Allstate.

 

[Bobby]

By "maintenance," I mean in the event that your engine for a gas car blows, they will have to replace that. As far as I am aware, electric cars have far lower complexity(?), and if you did a 100 person sample and tallied up the cost for gas cars vs ev car failures, I think the gas car group will cost more.
Also as you said, economy is not DIRECTLY related to insurance rates but it affects many factors that DO affect insurance rates.

Insurance does not cover that either. If your engine blows, you are on your own.

 

[Rogue]

Thanks for the info. My post was directly from my son-in-law's answer. He is an actuary for Allstate.

Then I am at a loss. Banks are scrambling to manage risk better. Money is pouring like no tomorrow on trying to better model financial systems and liquidity.

If the insurance companies are not in the same boat, then we are being scalped and risk not properly assessed.

I know you outlined the factors, so how does he propose the higher prices are justified for those with no significant changes in the above? Honest and genuine question because I haven't seen a hike. Something has to be driving the costs up. My guess would have been the assets themselves (really liabilities, a different discussion though) and the craziness of the market.

Maybe my company should talk with All State to get insurance premiums down, eh? I only partially jest. The factors listed don't seem sufficient.

 

[Bunnylebowski]

Went ahead and signed up for Geico. The rate will be $100 lower than my current pre-50% increase auto insurance. Geico doesnt bundle home and auto. I'll stay with Wawanesa. It will go up $215 from $735 to $950. Overall ~$765 difference every 6 months. Geico says it takes up 15 business days. Hopefully they don't revise and increase it by 50% lol

GEICO bundles with Liberty Mutual for homeowner. I had them both before switching from GEICO to Esurance. That was an enormous mistake, Esurance is terrible, they don't return phone calls, don't respond to emails, are very slow to respond to inquiries from the repair shop, and they're refusing to pay Lucid certified shop labor rates. I plan to go crawling back to GEICO with flowers and apology letter the minute I get my car back from the shop.