Auto Insurance Hike from Residential Move w/i Same Zipcode

[LoneRanger]

We moved. We moved about 4 miles as the crow flies, remaining in the same zip code and even the same general suburban locale of the larger metro area. Erie Insurance hiked my Forester an extra $33. A call to them revealed that it's because of the residential move.

When it comes to auto insurance, you just better get used to bending over.

 

[demarpaint]

Insurance companies suck! Having said that there are certain blocks within zip codes that are more prone to theft, etc. than others. So I was told.

 

[Bud]

Time to shop around.

 

[Donald]

What company?

Sometimes something will trigger the company to pull your DMV info and they see something to charge you extra for.

In my case wife's daughter renewed her drivers license and shortly after we got a rate increase, a surcharge due to inexperienced driver (she is 30 but only has been driving for 2+ years) and because of the surcharge they took away the 5 dr good driver discount we had. This is GEICO. They have been good until now.

 

[DzoG20]

The "formula" the insurance companies are using is quite complicated. Different premium when moving residency is plausible explanation on its own. Other not so obvious example I have is that some of the companies ask for how long I had given car(say 2005 nissan), and it makes 20% difference if I bought it in the last 1 year(more expensive) or had it for 7-8 years(cheaper).

Shopping around is always a good idea.

 

[Hall]

They are looking more finely than just the city or even the zip code. There's something "worse" (to them) about the neighborhood compared to your previous one.

 

[LoneRanger]

Originally Posted by hallstevenson
They are looking more finely than just the city or even the zip code. There's something "worse" (to them) about the neighborhood compared to your previous one.


Perhaps it's because it's a bit more upscale (slightly higher home values) and thus they figure they can soak the policy holder for more $$$$$$$$$$$$$$$$$$

 

[CT8]

Raising rates is how they increase profits . But then everything is going up in cost.

 

[PimTac]

The insurance company should be upfront with the reason. If not, can you trust them? Time to do some shopping.

 

[DB_Cooper]

The big reason insurance companies look for any excuse to raise your rates is the "wrongful injury industry" created by greedy lawyers around car crashes. Example: About a year ago there was a local commuter bus that was going down the street in front of my house. The driver was too close to the curb and his RH mirror clipped an oak tree. He stopped and the police and ambulances were summoned. About ten people got off the bus with neck braces then onto gurneys going to the local hospital. The fire department and police officers there were almost laughing out loud. Totally out of proportion injuries for a broken bus mirror..and a fraudulent cash grab. No surprise there were big banner ads on the sides of the bus for a local "personal injury attorney"..he may have gotten the business that day.

Till those sorts of activities, treating minor incidents as winning the lottery, are curtailed..look for your insurance rates to continue to climb.

 

[pandus13]

Originally Posted by LoneRanger
Originally Posted by hallstevenson
They are looking more finely than just the city or even the zip code. There's something "worse" (to them) about the neighborhood compared to your previous one.


Perhaps it's because it's a bit more upscale (slightly higher home values) and thus they figure they can soak the policy holder for more $$$$$$$$$$$$$$$$$$

My opinion: Because they can.

I remember you did not move to a worse area....

So I would recommend seeking an insurance broker.

 

[Hootbro]

You got to be willing to shop around and jump ship to the next insurance company if you want to keep your rates reasonable. I have 800+ credit score, no accidents or tickets and live in a nice very low crime area. After awhile, the insurance companies take you for granted and just start raising rates for no other reason than they can.

 

[KrisZ]

Originally Posted by Bud
Time to shop around.


Exactly. No reason to be loyal and complain at the same time. It just reafirms them that what they are doing works.

 

[ekpolk]

As soon as this sort of thread veers into either "greedy trial lawyers" or "insurance companies reaping benefits from being carefully under-regulated", it has gone across the religion/sex/POLITICS line. We're all entitled to our opinions, but there are good reasons why we don't go to these places on BITOG. Check the rules, please -- and follow them....