Insurance Ploy

Just left GEICO for that very reason. Took my auto, home, and umbrella policy with me.

When I left USAA a few years ago, GEICO was $1,700/year for 6 cars, with two kids on the policy.

Fast forward, with 6 cars and one kid (who is 29, with a clean record), GEICO is up to $4,000. Same boilerplate hogwash on the "factors". Same price as USAA.

So, I left. I'm back with USAA. There is no loyalty demonstrated by those companies towards long term customers, and I am no longer loyal to them. I've been with USAA for 36 years. That doesn't get me a single dime in savings...
 
According to the data, miles driven in 2022 is the same as 2019 at 14k. Even in 2020 it was still nearly 13k.

Total cumulative miles driven in 2022 is up 6% over 2021 .


Yet, getting parts and repairs is far more expensive in 2022 vs 2019. This definitely plays a part.
But auto insurance companies have doubled to tripled profits so it’s all moot isn’t it?

It doesn't justify a 50% increase in rates though...insurance company expenses have not gone up by that much...they are at the very least profit padding, if not outright gouging...

Costs to insurance have gone up far slower than inflation and using average miles is kind of a kick in the pants to the 90% who drive under the average and the increased number of folks who don’t drive at all.

We have a small percentage of society putting on all the miles and we all pay for the small subset of super users driving over 120,000 miles a year.
 
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Progressive is particularly bad about this. I was only with them for one year, because the 2nd year premium notice had such a shocking rate increase that it got my attention. That's where they're going wrong. They'd be smarter to do smaller increases and just do them every year, rather than smack you in the face with something huge on year two. It may not increase their profits as quickly, but it also won't drive a bunch of customers into the arms of a competitor.
If as some are saying, they're recent rate increases are due to inflation, then I could see a premuim increase of 5-10%, but 50% is just plain uncalled for...
 
If as some are saying, they're recent rate increases are due to inflation, then I could see a premuim increase of 5-10%, but 50% is just plain uncalled for...
So, leave them.

Complaining on BITOG isn't going to get them to reduce your rate.
 
Absolutely.
In the other recent insurance thread, I posted about an experience I had with my in laws.
They are both pushing their eighties, and have never been what one would call thrifty with their money.
So now after several concerns with money, coupled with some issues about my MIL's health (she has always handled the financials in their household) the three children became actively involved.
Of the three children's spouses, I am known as the one with the best business sense. Thus, I was recruited by Mrs. Tdbo and her sister.
Spent five hours going through everything, and found beaucoup issues. The one that was most glaring was their home/auto policies.
They were married in the early 60's, and had always been with the same companies and even the same agent.
I told the FIL he needed to shop his insurance, and even who to call. He argued about that, however agreed to (I think in an attempt to prove me wrong.)
So he did, and even he was stunned. His homeowners went from $2750./year to $1170., with better coverage. Auto went from $1100. year, to $570.
So definitely, premium creep is a real thing. Yes, many companies benefit from it.
However, the one thing that always fascinates me about these threads is that people generally give their business to the worst offenders of premium creep. Yes Flo's and Gekko's and their stupendously dumb commercials create real overhead, and provide no value.
In many venues there are regional companies that provide real value with competitive rates, with minimal or no premium creep. These companies can be uncovered with a quality independent agent or broker. I have been with my company 29 years, and I shop insurance every two years. After 20, I did a particularly deep dive into shopping rates. The best that I could find (through a "Deal" that they had at the time with my college alum association) would have saved me $50./year combined on both my home/auto. This was with a company that is well known for jacking rates upon renewal. I might add, their initial quote was substantially higher than what I was paying with my company. After they asked who I was with and put me on hold for 15 minutes, they came back with the $50. less. Why would I want to change from a company that was extremely competitive, to one that would stick it to me upon renewal?
I'm all for shopping the rates, but do the deep dive and find a true array of companies. Why keep bouncing back and forth between the Jake's and the Flo's and the Gekko's, when there may be a quality company out there that does not spend tons of money on advertising, jingles, and mascots. The best way to shop is with an independent agent, agents, or broker(s) that know who these companies are, and can present a wide array of quotes.
Okay, I'll bite. Where does one find one of these brokers, and how much do they charge for their services?
 
So, leave them.

Complaining on BITOG isn't going to get them to reduce your rate.
Leaving them doesn’t reduce the rate either when they are all overpriced, up until a few years ago I could legally cancel my insurance and that is the only way you would motivate them to lower rates.

My rates doubled as soon as auto insurance became mandatory and all the other companies jacked up prices at the same time.

When insurance was optional my rates went down every year, mandatory and it’s gone up every year
 
People who crash a lot would quickly get priced out of optional insurance, thus the group that does buy optional insurance is a better risk.
 
Okay, but a 50% increase? I think "ploy" is an accurate description..."gouge" would apply as well...
Eggs are $6.20 for a quantity of 18 at Walmart. Think about it....ask you wife what they were a year ago.
 
Okay, I'll bite. Where does one find one of these brokers, and how much do they charge for their services?

Nothing to bite, really very simple.
Look in your phone book. Look for a broker or a good independent agent that represents an array of companies.
If you can't find one independent agent that has a good assortment of companies, find a second or third,and use them in conjunction with the first.
That's how I ended up finding out about the company that I have been with for years.
If you find the right independent agent, they can actually act somewhat like a broker, whose task is to find the best company/policy that fits your needs, not just sell the one they happen to have handy. One close to me actively states that they will shop your policy among an array of companies upon renewal, if desired.
If they sell you a policy, they make a commission on it. I have never had to pay anything additional for using a good agent/broker.
It has saved me a whole lot of time over the years, and their expertise has presented options to me that I was unaware of.
 
They are raising prices because of inflation. I am sure repairs, parts and the like are far more than they were just two years ago. We will all pay for this. The inflation factor has no relation to your driving or claim records.

I don't think "ploy" is the best word to use.

IMO depends on the company. Many of them lure you with a significantly lower rate to get you to make the move. After a couple of years they slowly, incrementally increase your policy. If you don't pay much attention to a slight increase that sure is a dream for the Ins Co. That's been my experience in NY over the last 25 years or so.
 
IMO depends on the company. Many of them lure you with a significantly lower rate to get you to make the move. After a couple of years they slowly, incrementally increase your policy. If you don't pay much attention to a slight increase that sure is a dream for the Ins Co. That's been my experience in NY over the last 25 years or so.
When I started my policy with Geico, I believe they did lure me in with a lower rate, however, they didn't gradually raise it. They left it the same for 2 years, which brings us to now, and then they jacked it up 50%. Did they actually think I wouldn't notice?
 
Nothing to bite, really very simple.
Look in your phone book. Look for a broker or a good independent agent that represents an array of companies.
If you can't find one independent agent that has a good assortment of companies, find a second or third,and use them in conjunction with the first.
That's how I ended up finding out about the company that I have been with for years.
If you find the right independent agent, they can actually act somewhat like a broker, whose task is to find the best company/policy that fits your needs, not just sell the one they happen to have handy. One close to me actively states that they will shop your policy among an array of companies upon renewal, if desired.
If they sell you a policy, they make a commission on it. I have never had to pay anything additional for using a good agent/broker.
It has saved me a whole lot of time over the years, and their expertise has presented options to me that I was unaware of.
I will look into a broker, sounds like a no-lose situation...
 
Why not find a local independent agent in your town.... They deal with many companies and can get you the best deal.. I do this every year...for both Auto and Home...
 
Why not find a local independent agent in your town.... They deal with many companies and can get you the best deal.. I do this every year...for both Auto and Home...
I have no need to search for auto or home coverage, only for my motorcycles....I don't know if brokers will work for only MC insurance...
 
I have no need to search for auto or home coverage, only for my motorcycles....I don't know if brokers will work for only MC insurance...

My suggestion is that if you are going to go through the process of finding a broker, have them shop everything. You won't be out anything additional, and you might be pleasantly surprised. Really, there isn't that much difference between a good independent agent or agents and a broker. The key to it all is that the independent or broker has an array of companies to work from instead of being a captive agent and only selling Allstate, for instance.
 
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