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Esteemed Contributor
Posts: 5,023
Registered: ‎09-12-2010

DH and I just received our renewal for our auto insurance, and once again the premium has risen 10% from the previous year. We're retired with 2 autos - one is a 2004 SUV and the other is a 2010 sedan. No accidents - low mileage annually for both of us. We switched carriers about 5 years ago to get a better rate, but even with giving them our homeowner's policy, I think $1,000/year in the Midwest is a bit steep (low crime area) for car insurance. Have any of you had recent experience with car insurance, i.e., continued increases in premiums? Maybe we need to increase our $500 deductibles to $1,000. Our liability coverage is at $100,000/person and $300,000/accident. Or maybe it's the same as everything - prices just continue to increase. Thanks for any comments or experience you have with auto insurance. I plan to call our agent tomorrow as well as a few other carriers.

Esteemed Contributor
Posts: 5,858
Registered: ‎03-10-2010

@jannabelle1:  Insurance rates are based on many factors but I don't think "high crime" is the big one.  When I lived in the Mojave Desert in a small town, the thing that made our insurance really high was that in order to go anywhere out of town we had to travel part of the trip on 395, between four corners and Mamoth, one of the most dangerous highways in the country.  Everyone I knew had known one of more people who had been maimed or killed on that horrible road.  We were so glad to move out of that area when we retired!

Honored Contributor
Posts: 20,268
Registered: ‎03-12-2010

our insurance rates skyrocketed for our renewal last October. Went up close to $600.00 per year for both cars. 

 

We are both senior citizens, have 2 older cars 2003,2010. No tickets. I rarely drive, we stay local. My husband still works full time so he does drive to work daily.

 

what our downfall is we live in densely populated mid Atlantic area. Rates skyrocketed for all people in my state because of some obscure law that was passed behind closed doors that all the insured have to pay state insurance agency X amount of money per vehicle for uninsured drivers. We pay to let uninsured drivers drive in my state. This is a really obscure law that was recently passed. The general public was not informed about this law till it went into effect.

 

My husband and i had to look for a new insurance agency. We went with USAA (my husband is retired military) which has helped us quite a bit with rates.

Respected Contributor
Posts: 2,800
Registered: ‎03-14-2010

When my rates went up I called my carrier and asked why.  The answer was that it was just the cost of doing business, they have been paying out lots of claims, and have to pass that along to their customers.  We all will probably see an increase as the carriers pay out to all the people of natural disasters.  Think of the CA fires.

Respected Contributor
Posts: 2,808
Registered: ‎03-10-2010

Re: Auto Insurance

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Here's another vote for USAA if you qualify. Their rates are competitive and customer service is unparalleled.

Esteemed Contributor
Posts: 5,023
Registered: ‎09-12-2010

Thanks for your comments....DH is a veteran, so I think it might be good to check out USAA. I've seen their ads on TV, but hadn't thought about them as an alternative. I don't think any of us like to have our rates increased in order to cover uninsured drives, but unfortunately I know that is a big problem.

Honored Contributor
Posts: 19,779
Registered: ‎09-06-2010

@jannabelle1......Yes, I notice it every year.  Have my renter's coverage and auto coverage with USAA.  Have had them for about 25 years now.  Once I hit age 70, really noticed a large increase.  This year I will be 79.  Don't know what your ages are, but that could be a factor for you in the reason for the increase.  I too am in the midwest.

 

My car is 22 years old with low mileage.  Also, I have it so that I will only travel about 3500 miles a year...that reduced the premium some.  Have an excellent driving record.  

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Honored Contributor
Posts: 19,779
Registered: ‎09-06-2010

Yes, USAA is an excellent company.  My father was a chaplain in the Army, and that is why my sister and I both qualified for their coverage.  It has changed a lot since taking it out....they cover so many more folks now.  Back then the military person had to be an officer.  Not anymore that way.  

 

But yes, we are all paying for all those claims that have been filed....flooding, fires, tornadoes, etc.  If they didn't increase our coverage premium, they would all go broke.  

Respected Contributor
Posts: 2,212
Registered: ‎03-09-2010

@jannabelle1   If I understand correctly, your premium is $1,000 a year for 2 cars.  That sounds pretty reasonable to me but I live in the northeast where insurance is high.

 

I would see how much the policy would be with a $1,000 deductible.

Esteemed Contributor
Posts: 5,023
Registered: ‎09-12-2010

@ShowMe, thanks for your comments. I'm in Missour also (St. Charles). We're both 70 but I hadn't even considered our age perhaps being a factor. That's a question I'll ask when I call our agent, although I'm sure age will be something he would want to avoid. I'll definitely be calling USAA and see what they can offer us.