Statefarm Auto Insurance goes up every 6 months without reason?

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Topic Author
pax4235
Posts: 40
Joined: Fri Dec 22, 2017 4:32 am

Statefarm Auto Insurance goes up every 6 months without reason?

Post by pax4235 »

Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.

Here are my charges:

Car: Owned 2017 Honda Civic
State: California
Age:26

12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)

Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
kerplunk
Posts: 809
Joined: Sun Apr 17, 2011 9:58 pm

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by kerplunk »

Shop around. Progressive has always had the cheapest rates for me. I'm 32, Florida, no accidents, 2017 CR-V, and my insurance costs $600 every 6 months. It's pretty insane.
tj
Posts: 3966
Joined: Thu Dec 24, 2009 12:10 am

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by tj »

Every car and driver is different. If you're rates are going up, shop around. If you can't find a better deal, then you have your answer..
exit_r
Posts: 43
Joined: Tue Dec 29, 2015 9:25 am

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by exit_r »

I spend the time every two years to shop it around. With multiple policies (homes, autos, umbrella) there tends to be a big variance in price each time I shop it. State Farm has been on the expensive side lately. They used to be the best.

We are both 35, no accidents, 790+ credit scores. (according to SF this impacts your rate with them)
criticalmass
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by criticalmass »

pax4235 wrote: Tue Dec 26, 2017 10:35 am Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.

Here are my charges:

Car: Owned 2017 Honda Civic
State: California
Age:26

12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)

Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
To answer your question, what prices are other companies quoting you? Which companies do you have quotes from? (e.g. Mapfre, Geico, Farmers, USAA, etc.) Since you don't list what you are buying for the price (e.g. collision? comprehensive? under/uninsured? $100k/300k liability limits or higher? extras like replacement value/towing/transportation?) it is impossible to know if you are getting a good/bad rate.
stan1
Posts: 9765
Joined: Mon Oct 08, 2007 4:35 pm

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by stan1 »

In California for a driver with a clean record: move to a different zip code, get older, get married, become a female, choose a different car (lots of boy racers drive Civics). Other than that get more quotes and investigate various discounts each insurer may have.
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by PFInterest »

shop around
see my post here
viewtopic.php?t=234418
Ruger
Posts: 307
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Ruger »

I called my State Farm agent and asked why my rates (no accidents, no tickets, no claims) were continuing to go up every 6 months, and by a lot.
They claim it is because my area is growing so quickly that there are more drivers on the road driving more miles and causing more accidents.
I think it's a lot of bull and will soon be looking at other companies to transfer all of my policies to.
stan1
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by stan1 »

stan1 wrote: Tue Dec 26, 2017 11:20 am In California for a driver with a clean record: move to a different zip code, get older, get married, become a female, choose a different car (lots of boy racers drive Civics). Other than that get more quotes and investigate various discounts each insurer may have.
Forgot one: drive fewer miles.
runner3081
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Joined: Mon Aug 22, 2016 3:22 pm

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by runner3081 »

stan1 wrote: Tue Dec 26, 2017 12:35 pm
stan1 wrote: Tue Dec 26, 2017 11:20 am In California for a driver with a clean record: move to a different zip code, get older, get married, become a female, choose a different car (lots of boy racers drive Civics). Other than that get more quotes and investigate various discounts each insurer may have.
Forgot one: drive fewer miles.
I have found over the years that this really makes only a negligible or no difference. Most (70%) of accidents happen within 10 miles of home anyways.

https://www.injurylawcolorado.com/legal ... f-home.htm
runner3081
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by runner3081 »

Ruger wrote: Tue Dec 26, 2017 11:48 am I called my State Farm agent and asked why my rates (no accidents, no tickets, no claims) were continuing to go up every 6 months, and by a lot.
They claim it is because my area is growing so quickly that there are more drivers on the road driving more miles and causing more accidents.
I think it's a lot of bull and will soon be looking at other companies to transfer all of my policies to.
Increases come from claims history in your area and financial performance of the insurer. There were an enormous amount of losses in extreme weather this year.
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dm200
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Location: Washington DC area

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by dm200 »

pax4235 wrote: Tue Dec 26, 2017 10:35 am Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.
Here are my charges:
Car: Owned 2017 Honda Civic
State: California
Age:26
12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)
Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
Cannot speak to "normal" but have you discussed rates and coverage, in detail, with agent? Get details on breakdown of premium by exact coverage and that coverage history.

Also, look at your coverage, and see if you can reduce rates:
1. Mileage and use accuracy?
2. Increase deductibles on collision/comprehensive
3. Unnecessary coverage? (towing, medical payments, ?)

I am sure there is a "reason".
Last edited by dm200 on Tue Dec 26, 2017 3:04 pm, edited 1 time in total.
KlangFool
Posts: 19621
Joined: Sat Oct 11, 2008 12:35 pm

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KlangFool »

pax4235 wrote: Tue Dec 26, 2017 10:35 am Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.

Here are my charges:

Car: Owned 2017 Honda Civic
State: California
Age:26

12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)

Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
pax4235,

It is very simple.

If you choose not to shop around, your insurance will go up regularly. If you shop around, your insurance rate may go down. The insurance company is smart enough to know that they could charge a higher price to folks do not shop around.

KlangFool
KlangFool
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KlangFool »

dm200 wrote: Tue Dec 26, 2017 3:04 pm
pax4235 wrote: Tue Dec 26, 2017 10:35 am Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.
Here are my charges:
Car: Owned 2017 Honda Civic
State: California
Age:26
12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)
Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
Cannot speak to "normal" but have you discussed rates and coverage, in detail, with agent?

Also, look at your coverage, and see if you can reduce rates:
1. Mileage and use accuracy?
2. Increase deductibles on collision/comprehensive
3. Unnecessary coverage? (towing, medical payments, ?)

I am sure there is a "reason".
dm200,

I disagreed with that statement. The usual case is the insurance company provide a new customer discount to their new customer that expires after 6 months to a year. Most people just renew their insurance bill without looking at it closely. But, they could have shopped around and got a better deal elsewhere.

In general, a person should change their car and house insurance provider every 2 to 3 years in order to get a better deal.

KlangFool
Brain
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Brain »

runner3081 wrote: Tue Dec 26, 2017 2:58 pm
stan1 wrote: Tue Dec 26, 2017 12:35 pm
Forgot one: drive fewer miles.
I have found over the years that this really makes only a negligible or no difference. Most (70%) of accidents happen within 10 miles of home anyways.

https://www.injurylawcolorado.com/legal ... f-home.htm
This "statistic" really gets my goat.

Most accidents happen close to home because people don't usually have a reason to drive far from home. If your workplace and every restaurant/shop you patronize are within 10 miles of your house, you are unlikely to ever travel more than 10 miles from home. 99% of driving is close to home, so of course most accidents are going to happen close to home.

And there most certainly is a reason for your rates going up: the company makes more money by raising your rates. It's your reward for taking the easy route of auto-subscribing. It's the same reason utility and ISP rates go up. Shop around every few years and you'll save a bit of money. That's why each company says in their ads that people save a bundle by switching, because, on average, when people finally switch, any company will be cheaper than the one that's been jacking up their rates for the last several years.
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dm200
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by dm200 »

In 45 years of being continuously insured by State Farm, I (then later we) never seriously shopped for car insurance. Only one small claims dispute (settled in my favor after appeal) in all those decades and I believe rates are ok. What I/we do and have done regularly over the years is verify coverage details, drop unnecessary coverage and make sure that the mileage and use of each insured vehicle Is accurate (and sometimes adjust use/mileage) to get lower rates.
Grt2bOutdoors
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Grt2bOutdoors »

pax4235 wrote: Tue Dec 26, 2017 10:35 am Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.

Here are my charges:

Car: Owned 2017 Honda Civic
State: California
Age:26

12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)

Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
Auto insurance is regulated by state insurance commission. if they are raising your premiums there is most certainly a reason and a corresponding answer. Most likely reason is increased accident claims in your regional vicinity that you reside. Do you reside in an area where there are wildfires? Fire is covered under comprehensive portion of auto insurance. You could shop around and see what other auto insurers are charging for similar type coverage.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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fortfun
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by fortfun »

pax4235 wrote: Tue Dec 26, 2017 10:35 am Statefarm Auto Insurance goes up every 6 months without reason? I've had no accidents and claims. 8+ yr clean driving history. Before I was insured by parents but now I pay my own insurance.

Here are my charges:

Car: Owned 2017 Honda Civic
State: California
Age:26

12/2016: $570 (6 mo)
7/2017: $610 (6 mo)
12/2017: $630 (6 mo)

Please tell me if these rate increases are normal or not? What should I expect for rates if they keep increasing? Will I be paying $700+ eventually? What should I do? Please advise. Thank you!
They look at your personal profile (a computer algorithm) and decide how likely you are to go through the trouble of switching insurance. If the program decides you probably won't bother switching, you are added to the list of people who will have your rates increased frequently. NPR did a news report on this a few years ago. You should probably switch or they will just keep going up. Evidently, the program determined that you probably wouldn't switch (sadly).
Grt2bOutdoors
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Grt2bOutdoors »

KlangFool wrote: Tue Dec 26, 2017 3:08 pm

In general, a person should change their car and house insurance provider every 2 to 3 years in order to get a better deal.

KlangFool
I use State Farm to insure my personal residence, my experience is the opposite of your advice. I've shopped the same coverage with other major insurance providers who claim additional savings or discounts, comparing apples to apples, it always turns out the discounters are more expensive than the incumbent. They are more expensive because their deductibles are higher (implying I would need even more coverage to match current policy) or their premiums in a "like for like" scenario are much higher. However, I find shopping auto coverage providers can be cheaper. The one provider I know is famous for enticing with a discount teaser was Allstate. They have a habit of dropping the discount after a year and then starting the premium escalator for auto coverage.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
KlangFool
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KlangFool »

Grt2bOutdoors wrote: Tue Dec 26, 2017 4:59 pm
KlangFool wrote: Tue Dec 26, 2017 3:08 pm

In general, a person should change their car and house insurance provider every 2 to 3 years in order to get a better deal.

KlangFool
I use State Farm to insure my personal residence, my experience is the opposite of your advice. I've shopped the same coverage with other major insurance providers who claim additional savings or discounts, comparing apples to apples, it always turns out the discounters are more expensive than the incumbent. They are more expensive because their deductibles are higher (implying I would need even more coverage to match current policy) or their premiums in a "like for like" scenario are much higher. However, I find shopping auto coverage providers can be cheaper. The one provider I know is famous for enticing with a discount teaser was Allstate. They have a habit of dropping the discount after a year and then starting the premium escalator for auto coverage.
Grt2bOutdoors,

1) I move all my insurances (home, auto, umbrella) from one provider to another in order to get the maximum discount. And, because of umbrella insurance, it is not convenient to separate all 3 to 2 different providers.

2) To my surprise, there is a substantial cost difference between providers in term of ensuring teen drivers.

KlangFool
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pax4235
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by pax4235 »

Thank you guys for your answers. Can you guys help me check out my coverage and see if there is anything that I don't need or that I can reduce to lower my insurance premium? Thank you so much!
Liability Coverage

Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000
Property Damage Limit
Each Accident
$50,000

$249.46 / 6 mos

Comprehensive Coverage - $500 Deductible

$28.08 / 6 mos

Collision Coverage - $500 Deductible

$292.10 / 6 mos

Emergency Road Service Coverage

$4.42 / 6 mos

Car Rental and Travel Expenses Coverage

Limit - Car Rental Expense
Each Day, Each Loss
$25 $600

$17.13 / 6 mos

Uninsured Motor Vehicle Coverage

Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000

$36.84 / 6 mos

Uninsured Motor Vehicle Property Damage Coverage

$2.60 / 6 mos
Grt2bOutdoors
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Grt2bOutdoors »

If you are able to increase your comprehensive/collision deductible from $500 to $1,000 you'll likely save a hefty amount on those premiums. The biggest savings in that coverage occurs when you raise the deductible to the $1,000 level.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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flamesabers
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by flamesabers »

stan1 wrote: Tue Dec 26, 2017 12:35 pm
stan1 wrote: Tue Dec 26, 2017 11:20 am In California for a driver with a clean record: move to a different zip code, get older, get married, become a female, choose a different car (lots of boy racers drive Civics). Other than that get more quotes and investigate various discounts each insurer may have.
Forgot one: drive fewer miles.
My insurance carrier (USAA) gives me a discount for driving fewer miles then the average driver.
pax4235 wrote: Tue Dec 26, 2017 5:06 pm Thank you guys for your answers. Can you guys help me check out my coverage and see if there is anything that I don't need or that I can reduce to lower my insurance premium? Thank you so much!
Liability Coverage

Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000
Property Damage Limit
Each Accident
$50,000

$249.46 / 6 mos

Comprehensive Coverage - $500 Deductible

$28.08 / 6 mos

Collision Coverage - $500 Deductible

$292.10 / 6 mos

Emergency Road Service Coverage

$4.42 / 6 mos

Car Rental and Travel Expenses Coverage

Limit - Car Rental Expense
Each Day, Each Loss
$25 $600

$17.13 / 6 mos

Uninsured Motor Vehicle Coverage

Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000

$36.84 / 6 mos

Uninsured Motor Vehicle Property Damage Coverage

$2.60 / 6 mos
What you need or what you should change is a very subjective question. For instance, I wouldn't bother with car rental coverage and emergency road service for a few reasons:

1. Having to rent a car or pay for a tow truck isn't a financial catastrophe.
2. Your options for car rental/emergency road service may be limited with your insurance carrier. If you're stranded somewhere, what's more important: getting back on your feet sooner (even if it means spending a little more money) or waiting a few hours or more until you can find someone that is in your insurance carrier's network?

A surefire way to save money on car insurance is to raise your deductibles. How much would you save if you set all of your deductibles to $1,000?
KT785
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Location: Texas Hill Country

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KT785 »

fortfun wrote: Tue Dec 26, 2017 4:56 pm They look at your personal profile (a computer algorithm) and decide how likely you are to go through the trouble of switching insurance. If the program decides you probably won't bother switching, you are added to the list of people who will have your rates increased frequently. NPR did a news report on this a few years ago. You should probably switch or they will just keep going up. Evidently, the program determined that you probably wouldn't switch (sadly).
fortfun is describing "price optimization" as discussed in this article from NPR. It should be noted however, per the article: "Among the major insurance companies we contacted, only Progressive and State Farm told us they don't price optimize."

My wife and I have two cars, our house, and an umbrella policy with State Farm and have actually seen some decreases in auto premiums over the 4 years we've been with them. The most noticeable decreases were at the 3 year mark when we received their "accident free" discount and when we started using their Drive Safe and Save program which tracks our mileage and how safe we drive (speed, braking, etc.). I also just turned 30, so that may play a role in things as well. :wink:

As others have mentioned though, insurance rates are very specific to the individual, their vehicles(s) and their location.
ebrasmus21
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by ebrasmus21 »

Many, many insurance carriers are taking significant rate increases with respect to auto insurance. A lot of the big insurance carriers out there are not making a profit right now from auto insurance because claims and the cost of claims are on the rise. The rates the carriers filed several years ago are proving to be inadequate to cover costs associated with the way cars are built and repaired today. As a result prices are going up.

Keep shopping around and hopefully you'll find any deals to be had.
Ruger
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Ruger »

runner3081 wrote: Tue Dec 26, 2017 2:59 pm
Ruger wrote: Tue Dec 26, 2017 11:48 am I called my State Farm agent and asked why my rates (no accidents, no tickets, no claims) were continuing to go up every 6 months, and by a lot.
They claim it is because my area is growing so quickly that there are more drivers on the road driving more miles and causing more accidents.
I think it's a lot of bull and will soon be looking at other companies to transfer all of my policies to.
Increases come from claims history in your area and financial performance of the insurer. There were an enormous amount of losses in extreme weather this year.
They started their extreme rate increases before the extreme weather arrived, which fortunately this part of the country usually avoids.
Topic Author
pax4235
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by pax4235 »

So can individual agents increase auto insurance rates? Will increasing people's rates increase their bottom line or how does it work? Who determines our car insurance rates and are they adjustable by each agent at their own free will?
KT785
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KT785 »

pax4235 wrote: Tue Dec 26, 2017 7:15 pm So can individual agents increase auto insurance rates? Will increasing people's rates increase their bottom line or how does it work? Who determines our car insurance rates and are they adjustable by each agent at their own free will?
The insurance companies themselves set the rates, which are also subject to state by state regulatory oversight; agents have no control over the rates and cannot adjust them.

When I and others in this thread say that the premium you pay is very specific to you, your vehicle, and your location, we mean that the insurance companies price risk at a granular level (age, sex, job, marital status, vehicle type/age, zip code, etc.). A variety of factors determine your ultimate rate, along with the discounts to which you may be entitled.
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dm200
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by dm200 »

pax4235 wrote: Tue Dec 26, 2017 5:06 pm Thank you guys for your answers. Can you guys help me check out my coverage and see if there is anything that I don't need or that I can reduce to lower my insurance premium? Thank you so much!
Liability Coverage
Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000
Property Damage Limit
Each Accident
$50,000
$249.46 / 6 mos
Comprehensive Coverage - $500 Deductible
$28.08 / 6 mos
Collision Coverage - $500 Deductible
$292.10 / 6 mos
Emergency Road Service Coverage
$4.42 / 6 mos
Car Rental and Travel Expenses Coverage
Limit - Car Rental Expense
Each Day, Each Loss
$25 $600
$17.13 / 6 mos
Uninsured Motor Vehicle Coverage
Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000
$36.84 / 6 mos
Uninsured Motor Vehicle Property Damage Coverage
$2.60 / 6 mos
I would seriously consider

1. Increasing Collision and Comprehensive deductible to $1,000
2. Do you need/want emergency road service? Are ther better alternatives, such as AAA??
3. Do you need/want the car rental and travel expense coverage? Are there alternatives, such as getting along without the car for a short period?
4. I might even consider INCREASING the liability coverage
KT785
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KT785 »

dm200 wrote: Tue Dec 26, 2017 7:28 pm
pax4235 wrote: Tue Dec 26, 2017 5:06 pm Thank you guys for your answers. Can you guys help me check out my coverage and see if there is anything that I don't need or that I can reduce to lower my insurance premium? Thank you so much!
Liability Coverage
Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000
Property Damage Limit
Each Accident
$50,000
$249.46 / 6 mos
Comprehensive Coverage - $500 Deductible
$28.08 / 6 mos
Collision Coverage - $500 Deductible
$292.10 / 6 mos
Emergency Road Service Coverage
$4.42 / 6 mos
Car Rental and Travel Expenses Coverage
Limit - Car Rental Expense
Each Day, Each Loss
$25 $600
$17.13 / 6 mos
Uninsured Motor Vehicle Coverage
Bodily Injury Limits
Each Person, Each Accident
$100,000 $300,000
$36.84 / 6 mos
Uninsured Motor Vehicle Property Damage Coverage
$2.60 / 6 mos
I would seriously consider

1. Increasing Collision and Comprehensive deductible to $1,000
2. Do you need/want emergency road service? Are ther better alternatives, such as AAA??
3. Do you need/want the car rental and travel expense coverage? Are there alternatives, such as getting along without the car for a short period?
4. I might even consider INCREASING the liability coverage
OP would likely pay a lot more for AAA than the $4.42 per 6 months for emergency road service, but I agree that I'd be inclined to increase the liability coverage to 250/500/100 (each person/each accident/property damage) which would also enable OP to purchase an umbrella policy (which I'd likewise recommend).

OP, do you have homeowner's or renter's insurance? If so, is it with State Farm? Having renter's insurance is very, very cheap and should get you a discount on your auto insurance.
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dm200
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by dm200 »

OP would likely pay a lot more for AAA than the $4.42 per 6 months for emergency road service,
We have AAA - and it is worth it.
KT785
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Location: Texas Hill Country

Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KT785 »

dm200 wrote: Tue Dec 26, 2017 7:47 pm
OP would likely pay a lot more for AAA than the $4.42 per 6 months for emergency road service,
We have AAA - and it is worth it.
OP also has a brand new car (2017 Honda Civic) which I believe also means he has 3 free years (or 36,000 miles) of roadside service through Honda.
westcoast
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by westcoast »

Age 66 have had State Farm insurance since I could drive (16), we also have a 2017 Honda CR-V exl. Premium is 340 every six months. Also have a Lexus insured with them as well as rental property, home insurance, medical and an umbrella policy through them. After asking my agent for the policy face sheets of each policy to shop apples to apples, I got a rate decrease .. Shop around
nashirak
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by nashirak »

There are a lot of things that go into insurance rates in a particular area. It could be related to you personally or it could be related to any of a number of things in your market area. They could also be related to state insurance regulations as previously mentioned, or to the company itself trying to attract business or move business away as the company needs. The insurance company could also be trying to adjust the rates to match what other insurance companies have already done. You might find cheaper rate shopping around, or you might also find that other companies are now offering policies at that same price level.

As others have recommended, you can raise your deductible’s to get a cheaper premium. That’s the only thing I see on your policy that you could change to save some money. But as someone else already mentioned, you should really look into raising your property damage coverage especially living in California. This is me speaking as an insurance adjuster not as an agent. I see you every day how easy it is to blow right through load properly damage limits, especially in a multi car accident.
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msi
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by msi »

They used to do that for me, as did Progressive. Now I'm with GEICO, whose rate has declined at every renewal. YMMV.
Katietsu
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Katietsu »

My experience with State Farm is in line with NPR’s story. I have never had regular rate hikes. In fact, I have had regular reductions for several years at a time based on lower claims in my region.

I would say to the OP to shop around. But make sure you are getting quotes for the same coverage. I would also say that the response from your agent is a valid reason for rate hikes. More traffic means more accidents and higher premiums.
Jacotus
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Jacotus »

In my experience, here is a partial list of what will cause auto insurance companies to raise rates:
  • Having a newer or more expensive car
  • Living in a more expensive area
  • Living in a not as nice area
  • Moving to a new zip code
  • Staying in the same zip code
  • Breathing
Shop around.
scifilover
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by scifilover »

https://www.verisk.com/verisk-review/su ... -the-rise/

This is a link to some analytics that were developed for Warren Buffett and used to respond to shareholders to explain poorer results for GEICO.

It is very interesting.

In areas with higher population growth, and stronger economic growth, more miles are being driven, and accident frequency and severity are increasing.

Until there is a recession with its resultant job losses and economic slowdown, we can all expect to see more auto premium increases.

The best approach for auto drivers is to shop around as rate increase cycles are different for each company.
Houe
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by Houe »

I've notice the same thing with state farm. Doesn't make a lot of sense to me. My cars are getting older and less valuable yet insurance keeps going up. I suppose the replacement cost of the car is small compared to the liability portion but still... I'm pretty sure my time with state farm is coming to an end. It seems insurance companies lure you in with a lower cost and then inch up the price. Therefore we have to shop around every year or two to make sure we are getting a fair price.
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pax4235
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by pax4235 »

What about doing away with Uninsured Motor Vehicle Coverage?

Can I raise my deductibles to $750 instead of $1000?

Will agents work with you to reduce your insurance rate to a set budget amount?
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dm200
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by dm200 »

pax4235 wrote: Thu Dec 28, 2017 1:47 pm What about doing away with Uninsured Motor Vehicle Coverage?

Can I raise my deductibles to $750 instead of $1000?

Will agents work with you to reduce your insurance rate to a set budget amount?
I don't think deductibles apply for UI
tj
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by tj »

pax4235 wrote: Thu Dec 28, 2017 1:47 pm What about doing away with Uninsured Motor Vehicle Coverage?

Can I raise my deductibles to $750 instead of $1000?

Will agents work with you to reduce your insurance rate to a set budget amount?
The only way to lower your cost is to reduce your coverage or increase your deductibles.

Or find another company that will give you the same coverage for a lower costs.


If you've shopped around and determine you are paying the best rate for your coverage, only then would I look at doing away with coverage, but think carefully whether that's something you actually want to do - could be penny wise dollar foolish in the long run. UIM is pretty important since your health insurance may or may not cover injuries from an auto accident.
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by flamesabers »

pax4235 wrote: Thu Dec 28, 2017 1:47 pmCan I raise my deductibles to $750 instead of $1000?
I think it depends on the insurance carrier as to what you can set your deductible to. If you have an online account with State Farm you should be able to see if you can set your deductible to $750. Otherwise, you can ask your State Farm agent about this.
pax4235 wrote: Thu Dec 28, 2017 1:47 pmWill agents work with you to reduce your insurance rate to a set budget amount?
Insurance agents can make suggestions on how to lower your premium, if that's what you're asking. If you haven't already, I recommend asking about any discounts you might be eligible for.
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pax4235
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by pax4235 »

Thanks for all of the responses :) Okay for the collision deductible. It doesn't really matter how much I raise it to as long as I am not in an at-fault accident right? If I have a $2000 deductible, and someone else hits me. Their insurance has to pay the full repair cost right? It is just that I have to pay $2000 out of my pocket if I hit someone else?
KT785
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KT785 »

pax4235 wrote: Thu Dec 28, 2017 3:56 pm Thanks for all of the responses :) Okay for the collision deductible. It doesn't really matter how much I raise it to as long as I am not in an at-fault accident right? If I have a $2000 deductible, and someone else hits me. Their insurance has to pay the full repair cost right? It is just that I have to pay $2000 out of my pocket if I hit someone else?
Typically, collision coverage (and its corresponding deductible) would also come into play if you were hit by an uninsured/under-insured driver, even if it's not your fault. In such a situation, your carrier would try to recover costs to repair/replace your vehicle (including your deductible) from the other party, but may not be successful in doing so.

For clarity, in most states UM/UIM coverage is for bodily injury liability, not property damage--unless you specifically get UM/UIM property damage coverage, which can't usually be purchased if you already have collision coverage.

There may be specific nuances to this in your state (breadth of UM/UIM coverage, etc.) so you'd want to discuss the details with your agent.
tj
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by tj »

pax4235 wrote: Thu Dec 28, 2017 3:56 pm Thanks for all of the responses :) Okay for the collision deductible. It doesn't really matter how much I raise it to as long as I am not in an at-fault accident right? If I have a $2000 deductible, and someone else hits me. Their insurance has to pay the full repair cost right? It is just that I have to pay $2000 out of my pocket if I hit someone else?

The collision and comprehensive deductibles only apply to damage to your vehicle. If you don't need to insure your own repairs, you can dump those coverages.

Relying on other people 's insurance can be dicey. Lots of people don't have insurance or enough insurance, that's why UIM is so expensive. In Arizona, UIM property damage insurance isn't even offered.
KT785
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by KT785 »

OP, since you stated you own a brand new car (2017 Honda Civic), I'm curious if you financed it or own it outright? If financed, you may be obligated to maintain a certain level of coverage pursuant to the terms of the loan.

For example:
What are the insurance requirements for a financing contract?
You must maintain physical damage, comprehensive, and collision insurance coverage for the duration of your contract, with American Honda Finance Corp. or AHFC named as the loss payee. Please read your financing agreement carefully and ask your dealer for details.
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pax4235
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by pax4235 »

KT785 wrote: Thu Dec 28, 2017 4:38 pm OP, since you stated you own a brand new car (2017 Honda Civic), I'm curious if you financed it or own it outright? If financed, you may be obligated to maintain a certain level of coverage pursuant to the terms of the loan.
I purchased full in cash. I have enough to buy another car if I wanted to in cash, but I am very frugal and love saving so I am asking about my insurance rate increases. :) Any more tips guys on what I should do here. Would you guys increase the deductibles or modify certain coverages if you guys had my insurance?
tj
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by tj »

pax4235 wrote: Thu Dec 28, 2017 4:41 pm
KT785 wrote: Thu Dec 28, 2017 4:38 pm OP, since you stated you own a brand new car (2017 Honda Civic), I'm curious if you financed it or own it outright? If financed, you may be obligated to maintain a certain level of coverage pursuant to the terms of the loan.
I purchased full in cash. I have enough to buy another car if I wanted to in cash, but I am very frugal and love saving so I am asking about my insurance rate increases. :) Any more tips guys on what I should do here. Would you guys increase the deductibles or modify certain coverages if you guys had my insurance?
If I had a brand new car, I'd have $1k deductibles. If $2k deductible is significantly cheaper, I'd consider that.

I wouldn't be dumping Collision and Comprehensive on a 2017 vehicle.
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Re: Statefarm Auto Insurance goes up every 6 months without reason?

Post by flamesabers »

tj wrote: Thu Dec 28, 2017 4:36 pmRelying on other people 's insurance can be dicey. Lots of people don't have insurance or enough insurance, that's why UIM is so expensive.
+1.

Even if the other party's insurance is adequate, it can still be a bit of a hassle working with someone else's insurance carrier when you're not their customer.
pax4235 wrote: Thu Dec 28, 2017 4:41 pmI purchased full in cash. I have enough to buy another car if I wanted to in cash, but I am very frugal and love saving so I am asking about my insurance rate increases. :) Any more tips guys on what I should do here. Would you guys increase the deductibles or modify certain coverages if you guys had my insurance?
Increase your deductibles. You have more then enough cash to afford a $1k deductible, plus you'll save money on your premiums if you don't get into an accident.
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