Annual Insurance Cost Increases?

[Stangkiller]

What rate increases are you seeing?

All things considered similar to the prior year, no Claims, no credit changes, ect.

My Amica auto policy is slated to increase 9.6% and bundled Amica homeowners is going up 12.6%

So much for this "1%" inflation rate, my property taxes increase 10% a year no matter what, home auto and umbrella insurance seems to be similar, I don't even bother looking at how much Health insurance costs have increased but it's beyond 10%. My internet just went up 9.3% Let's not even talk about Federal income taxes WTF, seriously this shit is out pacing my COLA increases at work, so I'm just here treading water, f'kin bullshit.

It seems like it's time to shop around again, State Farm was giving similar increases which is why I left them in the first place.

I guess that brings me to another question, how often do you change insurance companies?

[C5SilverBullet]

My car insurance went up $2.18.

I shop it every time it comes due.

[lspencer534]

I've been with State Farm for 30+ years. It's high, IMO, but they don't quibble when repairs are needed. About 15 years ago I had a hail storm ruin the roof on my house. Repair companies were overwhelmed, and the bill came to over $24,000 to replace the roof. State Farm paid without an argument.

[C5SilverBullet]

Originally Posted by lspencer534

I've been with State Farm for 30+ years. It's high, IMO, but they don't quibble when repairs are needed. About 15 years ago I had a hail storm ruin the roof on my house. Repair companies were overwhelmed, and the bill came to over $24,000 to replace the roof. State Farm paid without an argument.

I have had quite the opposite experience with State Farm.

[GRN ENVY]

I've had a 6% increase each year the past 3 years. I was told the population increase down here was to blame. More snow birds come screw up traffic for 6 months then leave. Geico has been the least expensive, have had them for almost a year. Allstate prior to them. I do shop every 6 months.

[Dan Dlabay]

My insurance for the vette, truck and suv went up $15 a year. I have been with Erie Insurance since 1969.

[markids77]

I'm with Spence. State Farm for everything for more than 25 years. With one exception they have been hassle free. After speaking to a couple acquaintances in the industry, we may have expected too much in that one instance. Unless they exit the auto business soon like our local agent suggests, we plan to continue our coverage there.

[Bill]

I am about to leave Amica. They were great after Hurricane Ike, and I've had them ever since, but they just finished pricing me out of the market. Over 4K for a nothing special 2,8xx square foot house, and the insult after injury just came when they quoted me over 2K a year for a 2016 Chevy Cruze.....a beater car, and that's just comp, collision and liability, not all the other goodies. Their claims folks were great, but it feels like they WANT me to go elsewhere, which I will. New homeowner's will be $ 1,8xx/ year, and the car will be $ 4xx every 6 months, although I will shop that better next time. Seems high.

[polarbear]

Not enough to even talk about (Safeco)

[mrvette]

Originally Posted by lspencer534

I've been with State Farm for 30+ years. It's high, IMO, but they don't quibble when repairs are needed. About 15 years ago I had a hail storm ruin the roof on my house. Repair companies were overwhelmed, and the bill came to over $24,000 to replace the roof. State Farm paid without an argument.

Originally Posted by Dan Dlabay

My insurance for the vette, truck and suv went up $15 a year. I have been with Erie Insurance since 1969.

24 GRAND for a roof?? Windsor Castle maybe....or a tree did in a bunch of crap.....

I was with Erie Insurance for decades, up north, one of the very sad parts on my Florida move was finding out Erie did not write insurance here.....

[VITE1]

Auto insurance rates rising at fastest rate in almost 13 years

Americans are driving more, thanks to rising employment and cheaper gasoline. But that also means they're getting into more accidents — and that's leading to higher insurance rates.
Of course, it's not just a matter of more people cruising the roads. Unsafe behavior also may be contributing to a national accident problem, according to research released by the AAA Foundation for Traffic Safety. A February report by the group found about 87 percent of drivers engaged in at least one risky behavior while behind the wheel within the past month, including using cell phones or not wearing seat belts.

"The number of accidents has gone up," said Jim Lynch, chief actuary of the Insurance Information Institute, a trade group. "At the same time, the size of claims settlements has been rising as well, so the industry is kind of getting hit by a double whammy."


The size of claims — which in industry lingo is called "claims severity" — is trending higher and affecting several auto insurance companies. Rising costs for medical care and auto repair are big drivers of increasing claims severity. The increasing price of auto parts contributes as well.

But critically, there are more personal auto claims as a result of Americans driving more miles. That trend, which is closely watched by industry analysts, can hurt the profitability of the insurance companies.

"If you look at companies like Allstate and Geico, last year in particular they reported much higher (personal claims) frequency than they had expected, and that eroded their profitability," said Meyer Shields, a stock analyst at investment bank Keefe, Bruyette & Woods. "They are slowly building that back now, really through just higher insurance rates."
Shields added that auto insurers Progressive and National General also saw an uptick in claims frequency but "seemed to anticipate it better and were able to adjust their rates to be able to absorb" it.

"Motor vehicle insurance always seems to be above the normal cost of inflation. The numbers to the payouts are going up. Medical bills seem to be crazy … and the costs especially for bodily injury."
-Penny Gusner, consumer analyst, Insure.com

The federal government last week released its auto insurance-related Consumer Price Index (CPI) monthly data — a proxy for policy rate activity — which showed prices rose 6 percent year-over-year in April. They were up 5.1 percent in February and March. April represented the largest year-over-year increase since October 2003, when motor vehicle insurance prices rose 7.2 percent.
"Motor vehicle insurance always seems to be above the normal cost of inflation," said Penny Gusner, a consumer analyst at Insure.com, an insurance marketplace. "The numbers to the payouts are going up. Medical bills seem to be crazy … and the costs especially for bodily injury."

From 2005 to 2013, figures show the average cost per paid bodily injury liability claim increased 32 percent, from $11,738 to $15,506, according to the Insurance Research Council. In 2014 it had reached $16,600, up 7 percent over the 2013 average payout.

A threat from autonomous vehicles?

That said, future automobile safety improvements and the adoption of autonomous vehicles may reduce injuries and save lives, too. But vehicles that drive themselves may undercut the car insurance carriers.
A report last year from KPMG suggests autonomous vehicles being developed today by Google and others "may bring about the most significant change to the automobile insurance industry since its inception." It predicts accident frequency per vehicle could drop 80 percent by 2040, when "the car stock will likely be replaced by or retrofitted with autonomous technology." Also, it suggests that within 25 years, "the personal automobile insurance sector could shrink to less than 40 percent of its current size."

"Insurers are well aware of emerging auto technology and the potential changes that could result in the insurance industry," said Lynch, the insurance trade group official. "The changes will be gradual and insurers should be able to manage this change."
For now, however, Lynch said personal car insurance carriers are likely to increase rates roughly "between 5 and 10 percent. The vast majority of them have been seeking an increase over the past year or two."

One of the biggest single rate increases so far this year among the major personal auto insurers was Allstate's average 25-percent rate hike, effective this month in the state of Georgia. In explaining the rise, Allstate said traffic fatalities increased 21 percent in Georgia in 2015, the first annual increase after a decade of decreases. What's more, the number of miles driven on Georgia roads and highways grew well above the national average.


"We adjust rates very carefully to charge properly for the risk we assume and ensure our ability to help protect customers from life's uncertainties," Allstate said in a written statement. "This particular rate filing applies to one of Allstate's three underwriting companies in GA and represents less than half our auto insurance business in the state."

In California, several major auto insurers also have requested or been approved for rate hikes this year, with most averaging roughly 7 percent. Also, premium increases of 10 percent or more have been going into effect in Florida in the past year.

Overall, the nation's top 5 writers of personal auto insurance have a combined market share of about 54 percent, according to SNL Financial data. Privately held State Farm is the largest, with an 18.3 percent share. It's followed by Berkshire Hathaway subsidiary Geico (11.4 percent), Allstate (10 percent), Progressive (8.8 percent) and USAA Insurance (5.3 percent). Geico has gained significant market share in recent years, moving ahead of Allstate to the No. 2 spot in 2013.


CNBC also reached out to Geico, State Farm and National General for comment but didn't receive a response. A spokesman for Travelers and Progressive referred to transcripts with management comments made during earlier earnings or investor calls.

"Some have commented that they're seeing higher (claims) frequency," said Travelers Vice Chairman and CEO of Claims Doreen Spadorcia, according to a transcript of the company's first-quarter earnings call. "Some have not commented. So we don't feel like it's this thing that's just ripping through the industry. It's affecting very specific companies.

"Progressive President & CEO Glenn Renwick, who is retiring effective July 1, also downplayed the frequency issue when speaking May 6 during the company's investor relations conference call.

Accident rates are going up and costs of those claims are going up.

[polarbear]

Originally Posted by mrvette

24 GRAND for a roof?? Windsor Castle maybe....or a tree did in a bunch of crap.....

I was with Erie Insurance for decades, up north, one of the very sad parts on my Florida move was finding out Erie did not write insurance here.....

Haven't priced roof's lately, I take it.

[JRD77VET]

Originally Posted by polarbear

Haven't priced roof's lately, I take it.

My house roof was $8500 to replace in 2015.

[mrvette]

Originally Posted by polarbear

Haven't priced roof's lately, I take it.

Originally Posted by JRD77VET

My house roof was $8500 to replace in 2015.

I calculated about 27 squares on my house, 5 hips and one valley, and I over on the squares by about 20% too......material cost 2700 bux, METAL, white, and so another 100 or so for some plywood, gang of illegals for 100 bux/day 4 guys....total labor 800 bux....... out the door for not more than 4 grand.....

I not done the job yet, I just keep plastering white sealant on it, cheaper by FAR.....

NO WAY IN HELL would I EVER put ANY kind of ASSfault shingles on my roof....

they don't make them good any more....

damn junk, like everything else.....

[bsmith]

Six-month auto policy dropped $2 a year ago, and dropped 6% on the renewal I just paid.

Homeowners hasn't changed much in the 4 1/2 years we've been in this house, and we had a hail claim for about $30k.

[mrvette]

Originally Posted by bsmith

Six-month auto policy dropped $2 a year ago, and dropped 6% on the renewal I just paid.

Homeowners hasn't changed much in the 4 1/2 years we've been in this house, and we had a hail claim for about $30k.

Where in hell YOU live?? gotta have a super tight state insurance dept.......

they loose as a goose here in Florida, one of the bad things about this state....

lousy coverage on auto too.....much less the illegal shituation.....

[bsmith]

Originally Posted by mrvette

Where in hell YOU live?? gotta have a super tight state insurance dept.......

they loose as a goose here in Florida, one of the bad things about this state....

lousy coverage on auto too.....much less the illegal shituation.....

BFE, Nebraska.

Tornado Alley, and we had baseball size hail a few years back.