Florida car insurance increasing at alarming rate ...
- Thread starter odie
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I remember in 12/06 I was paying about $680 annually, full coverage, brand new 2007 BMW 335i.
I still have the car in 8/23. It costs more to insure today, than it did, then. Car was wholesale over 40k then, and maybe 6k today.
Go figure. Insurance has some song and dance on why that is, they really do. It's as mythical as the "we don't pay for OE winshields," and the two-pe****** billy goat. Although I have gotten them to pay for the former, and never seen the latter.
In addition to the insurance company greed we need to look at our vehicles and how they are engineered. A good example is my MAZDA CX5 which is a middle cost small SUV. I have read the if my outside rearview mirror is damaged that the replacement cost is in excess of $1,500. That is just crazy and cost the insurance co. $$ which to me >$$$. Vehicle manufactures are a large part of this ever increasing cost escalation.
Insurance rates reflect loss experience by zip code. If any given insurer tries to rip anyone off on rates there will be another who will come in with more realistic rates.
At the end of the day, those areas with outsized loss rates will see large increases in premiums.
An individual might have never had an at-fault claim and may have a clean driving record, but they can't expect no change in premiums based upon where they live. Insurance is not individualized, it's a collective program.
If rates seem too high where you live, you can always move to an area with lower rates.
You can also shop companies, but be aware that the product is not really the same if you have to make a claim.
At the end of the day, those areas with outsized loss rates will see large increases in premiums.
An individual might have never had an at-fault claim and may have a clean driving record, but they can't expect no change in premiums based upon where they live. Insurance is not individualized, it's a collective program.
If rates seem too high where you live, you can always move to an area with lower rates.
You can also shop companies, but be aware that the product is not really the same if you have to make a claim.
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This is a very, very hard concept for those dealing with "cheap Internet based" companies (and other cheapie ones) to understand.
On another note-
I had someone who had Geico Insurance run in to me. The first ten minutes after they called me (kudos they did call me first) was an absolute disaster and I ended up making a claim on my own insurance policy. It was later subrogated at 97% with Geico.
Deal with the lizard-pay the price.
Shopping around with any considerable rate hike on a policy is a must. It's not hard, I'm in the process of switching home and auto right now as my homeowners was going up by 17%. Bundled with auto so I have them run the combo package for fun and turns out I'll be saving on the auto even though I was happy with that one.
The best may to control insurance costs is to make mandatory insurance on those with a clean record illegal.
Affects of mandatory insurance
1. Rates doubled overnight
2. Nesting a multi vehicle policy for one driver became illegal
3. Self insurance became illegal
4. Police randomly stop and ticket requiring a piece of paper even if it’s on your phone
5. Numbers of drivers with insurance has dropped
None of the so called benefits of mandatory insurance has panned out, fewer people are insured than before, rates are far worse and there are fewer options
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Zip code is a big factor, but re-insurance and local laws are as well - and that is usually by state.
You might have a higher or lower rate than another zip code in your state. However the cheapest zip code in one state can easily be higher than the highest zip code in another - based on these other factors.
I moved from the biggest metro area in North Carolina, to a small town in South Carolina, and my rates doubled - same cars, same drivers. This was 15 years ago - who knows if it is the same now.
My 16 year old son just switched from his permit to license. On his permit he was "free" on the insurance.
Now, with a license, he costs us an extra $308 for six months. Full coverage on two cars with 2k deductible, "his" own Camry, and the best liability I can get without an umbrella. Maine, Progressive.
Now, with a license, he costs us an extra $308 for six months. Full coverage on two cars with 2k deductible, "his" own Camry, and the best liability I can get without an umbrella. Maine, Progressive.
Plus there are more uninsured drivers on the roads these days than ever before. Ins cos keep raising rates, more and more people can't afford the premiums, so there are more uninsured drivers, where does the cycle end?
Before you drop USAA, you'd better make sure you can get a better rate from another company. I shop my insurance at least twice a year and have NEVER found another company that can beat, or even match USAA's rates. I've been with them for over 25 years...I haven’t experienced a claim in more than 20-years, and yet my rates go up all the time. I almost dropped USAA last time around. When I asked about my rate increase, they said it could be higher if I lived in Florida. Somehow, that didn’t make me feel any better. So much for no claims and a flawless driving record.
Similar with my 17yr/old son who got his licence a few months back. It was "free" when he had his learner's permit. It is about a $700 increase per year as of now. I'm with NY central mutual.My 16 year old son just switched from his permit to license. On his permit he was "free" on the insurance.
Now, with a license, he costs us an extra $308 for six months. Full coverage on two cars with 2k deductible, "his" own Camry, and the best liability I can get without an umbrella. Maine, Progressive.
If he were to try to get his own insurance, it would be impossible for him to pay. Worst part is, he's headed out of state for college next week and not even taking one of my cars with him.
MI's insurance is so high because they won't get rid of the stupid no fault...
Owen Lucas
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Just imagine for a second if insurance was cost effective and you could invest the difference between what you pay and should and then put it in an ETF. Over the years, you'd probably be worth an extra 6 figures by the time you retire. To much variability between each states and individual laws to make any sense of it all.
Well, just got final numbers and I'm decreasing my homeowners premium by 19% and auto by 27%. This is why I shop around every year.
Read up on how much of your premium dollar goes to fraud and how much is actually soft fraud vs hard fraud.
Odd the crowd that would demand the highest priced shop in town and OEM parts and never go to a DRP shop is complaining about insurance cost.
Odd the crowd that would demand the highest priced shop in town and OEM parts and never go to a DRP shop is complaining about insurance cost.
Which company did you end up with?
Progressive...I've heard mixed reviews on claims and customer service but the same can be said about many companies. I've never had to file a claim for home or auto ever (though I'm only 33) and I would consider my wife and I low-risk for needing to file but of course the whole reason to carry insurance is for when the "unthinkable" happens. So, maybe they're not the greatest but I'm willing to roll the dice for frankly premiums that are a real bargain.
They'll probably make up for it on the renewal.
And I'll switch again, like the last 3+ years at renewal time.
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