Insurance

[Mean_Green]

Having a brain ache over this and I'm not real happy.

I have a '95 Taurus GL Wagon and full coverage with rental and road aid is a little over $100 for six months. I had a '96 Chrysler (now gone) and it was about the same. Full coverage for both cars was under $500 per year.

I'm in a rural area outside of a small town, less than 50K population in the surrounding counties, very littl;e theft risk that I know of. I don't drive very much at all, less than 4K per year total, and only daytime when roads are clear and dry. High credit rating, no losses in many years. Have several low rate programs and discounts stacked to get the rate down.

I had checked with my agent when shopping and they told me roughly what the rate would be, but somehow it didn't sink in, or they left some details out.

The new bill came in and this is around $300 for six months, cose to three times what the others cars are/were. That's kind of hard to take for a 25 year old vehicle on a fixed income.

I have one more program to try (based on driving over a period of time) that might drop the rate some.

I don't know what these cost new or if repair rates are that much higher. Maybe because it's a 'truck'? Maybe the 4WD?

 

[Swagfu]

Absolutely the larger trucks will cost more in most cases...maybe not all. If you hit someone while driving the tahoe you are more than likely going to cause more damage to the other vehicle and may the passengers in the other vehicle. As for how much more...that's another subject. Insurance rates are going up everywhere. And it has nothing to do with driver's. It has to do with the cost of parts and labor. So many parts are coming from overseas which just cost more now to get. Inflation hits everywhere. That is the biggest driver of the rate increases people are seeing. I see it my policy and the homeowners. I used to work in insurance with both State Farm and Allstate. But that was about 12 years ago. Part of me always thought it to be a little scammish and part of me always thought it to be legit. Remember, with insurance, they really have you over a barrel. Also remember, insurance companies aren't so unlike other companies. They are for profit. Doesn't matter what kind of insurance you have, they all want/need a profit to stay in business. So you know, I live in Florida so laws are different in each state. But mostly I think you are seeing the cost of repairs skyrocketing so they have to raise the rates.

 

[Mean_Green]

Read back over the policy and the numbers are about double, not triple. Not as bad, but still not good.

 

[Scott in AZ]

There’s another factor here along with the generally higher premiums for large 4WD vehicles compared to cars. My brother works in the insurance industry. He says the inflationary impact of the pandemic is causing auto premiums to rise across the board. Insurance companies wrote policies for cars and trucks like our Tahoes and Yukons expecting their replacement value to be ”X” thousand dollars, and generally decreasing (depreciating) every year. Then the supply chain disruptions hit hard in 2021, new car availability dropped, and used car prices soared. Spare parts and labor rates also surged. The cost of nearly everything related to insuring cars became more much expensive except the annual premiums that were already locked in. As a result, many auto insurers lost money that they are now adjusting to recover. In other words, rates are just higher for all vehicles.

In his annual shareholder letter, Berkshire Hathaway Chairman Warren Buffett said 2022 was a “good year” overall …. but their subsidiary GEICO had nearly $1.2 billion in currency losses. Car insurance experienced a sixth straight year of underwriting loss despite increasing premiums.

State Farm‘s 2022 financial results and annual report for auto insurance lines included “record underwriting losses due to rapidly increasing claims severity and significant additions to prior accident year incurred claims.” Their loss was $13.4 billion.

With numbers like these, state regulatory agencies have no choice but to allow higher premiums.

 

[Mean_Green]

One of the 'perks' on my policy is small accident forgiveness. Then they define that as 'usually $500 or so'.

That's like one headlight in many cases.

 

[Doubeleive]

things are still hitting the fan so to say with all the "free" money people had during covid like not having to pay rent and government hand outs
now bankrupcies have increased 216% and loan defaults have increased (not sure how much exactly) but there is still a lot of fallout coming.
business real estate has taken a huge hit. All combined it's a big mess, they are all going to want to get it back from somewhere.

 

[Joseph Garcia]

I live in a rural town of about 8000 in NH, and my 07 Yukon XL Denali is insured with full coverage $300,000 single limit and a $500 collision deductible for $544 per year. It is a bit cheaper than my 2015 Honda Fit and my 2020 Honda HRV for the same coverage.

 

[randeez]

Would kill for triple digit insurance rates

 

[Eman85]

I recently sold my spare Yukon and insurance was costing me about $90 for 6 mos. I have only liability and for some reason I'm not on any safe driver deal as they still have an accident listed I had in a commercial vehicle over 10 years ago. Insurance is regulated by state and each state has an agency that oversees it. think you're getting hosed call them or another insurance company.

 

[OR VietVet]

What insurance company are you checking at? I do pretty good with USAA.