Andrewck

My semi-annual premium went up $50. I called my insurer (State Farm) to ask about the rate hike since I had no at-fault accidents, didn't move, didn't change coverage, etc. My agent told me that late last year State Farm actuaries determined the 996 cars (as a class) were due for a premium increase. I again asked why (high theft rates, increase in accidents, above average rate of hail damage???) and was told they didn't have viability into the issue. Has anybody else seen their premium increases in the last 6 months? Who is your insurer and what kind of rate hike did you see?

Splitting Atoms

I have been using State Farm since at least 1985. I currently have a 996, BMW X5, 2008 Mazda3, 2010 Mazda3, Toyota 4Runner, and F250 Super Duty insured with comprehensive and collision. My family has not had any accidents or tickets in the past two years, but our insurance has increased on every vehicle (except the 996 that I just bought), even though they are getting older. On average I would say $20 every six months for each vehicle. If you look at State Farm's recent financial statements, their costs for insurance payouts have gone up significantly and their earnings have gone down. If it were not for their investment earnings, they would have had a loss this past year. I think there are a lot of individuals and lawyers gaming the insurance companies, but that's a discussion for a different thread.

Andrewck

I hadn't even thought of looking at their 10k. Interesting you've seen a rate consistent rate increase, this is my first in a couple of years

Splitting Atoms

Between two houses, six cars, and my wife's engagement ring, I pay about 7k per year in insurance premiums to State Farm.

dblvanos

Carriers take rate, carriers give rate, it does not always make sense nor is it attributed to a single cause.

I go to carrier meetings and the company rep will be bragging that they did not take a rate increase. However if you look into the rate filings with the state you see that they raised one class of insureds 5% and gave that 5% to another group of insureds they feel are more preffered.

ejdoherty911

I shop my auto insurance once a year minimum and often every six months. It's worth the effort. Costs go up in general so the price of insurance goes up in general. If the pool of insured costs go up, if the employees (health care) costs go up, the insurance costs go up, even if you have no incidents. You mention no "at-fault" accidents. Were you involved in a "not my fault" accident ?

robman

Just got a letter from state farm informing me of an insurance premium increase. It's about $50 bucks. I'm going to shop around for a better rate.

Atrox

Usaa has been great for my family, if any have served in the military you qualify.

Dans996tt

Biggest effect on your rates is your credit score.

ejdoherty911

That's true, which most people don't realize or understand. I used to work at Geico and the single most important data point for the price of your insurance (after the year and make for collision coverage) was credit score. What does credit score have to do with driving? Nothing. But that doesn't matter. The facts show credit score is the most predictive data point when trying to identify who is going to cost you money.

Splitting Atoms

Interesting. I was told by my agent that most individuals were going to see an auto premium increase, at least in South Carolina. My credit score is as high as its ever been, between about 830 and 855 over the past year, so I don't think that's my issue. I did have a really large claim in 2015 when my house burned and most of the contents were destroyed. I ended up tearing it down to the dirt.

This is a picture out the wall of the master bedroom. I was sleeping in the bed, under that rubble pile in the picture, while the fire was burning in the roof of the attached garage. My youngest son was up playing video games and he noticed the orange glow outside his window and woke us up. The firemen got there quickly and did a great job putting out the fire, but they completely destroyed the inside of the house doing it. Everything was smoked and soaked. It got so hot in the garage that the aluminum MGB/MGC hoods melted (that's about 1200 degrees). No one, including the dog, was injured and most things are replaceable.

eddielasvegas

Well, I'm surprised you can get insurance based on my experience.

3-4 years ago I had a homeowner's claim for $3,200 under an insurer other than LM. First claim in 20+ years as a homeowner. I'm guessing your claim was a tad more than mine.

Decided to shop around as LM raised our rates (all policies are with them) last year about 12% (~$300).

Was told by an agent (for Eerie and others) that I needed to get my history clean before they could write a policy.

I had little choice but to stay with LM.


Eddie

SoCalMark

Unfortunately, insurance isn't immune from inflation. Auto insurance is starting to see the effects of low fuel prices, which puts more cars on the road, distracted driving (texting) and the bumper or mirror that used to cost $500 now costs $5,000 because it has some sensor in it.
State Farm lost $7B last year. Their money bucket needs to be filled up again.

eddielasvegas

Not if this is correct,

https://static1.st8fm.com/en_US/cont...ual-report.pdf

And they've done pretty well over the past few years based on the below published NI.

2011: 1B
2012: 1.5B
2013: 1.8B
2014: 1B
2015: 2.1B
2016: -2.5B


Were our premiums decreased when they were rolling in the cash?


Eddie

SoCalMark

As a whole. I was referring to their auto underwriting losses only. Actually, your reference does show $7B loss "Underwriting Gain or (Loss) (7,196)"
http://www.propertycasualty360.com/2...on-auto-underw