Why did my insurance go up!?!?!

[Pushbutton2]

In May I found out we've been with State Farm for 21 years and 7 months. We've only had one claim, in 2003 I think. 100% My fault.

In May I bought Dad's truck. Its a 1998 GMC K1500.

The State Farm agent said they needed a $57 Down Payment before they could add it to my policy.
I was like REALLY!! No Loyalty kickback or anything......

I've been thinking of switching to another company. For that single reason.
Petty i know but after almost 22 years and not one kickback.......

[BowSlayer]

So, I buy a new truck for $50,000 and take out full coverage. If I total it the next day the insurance company is out $50,000. If I drive that same truck for 10 years with no claims on it my premium is the same or higher and if I total it they pay out $5,000. That just really burns my beans.

[flywise]

In May I found out we've been with State Farm for 21 years and 7 months. We've only had one claim, in 2003 I think. 100% My fault.

In May I bought Dad's truck. Its a 1998 GMC K1500.

The State Farm agent said they needed a $57 Down Payment before they could add it to my policy.
I was like REALLY!! No Loyalty kickback or anything......

I've been thinking of switching to another company. For that single reason.
Petty i know but after almost 22 years and not one kickback.......

Did the agent actually say down payment? We add vehicles all the time on policies and do not require a " down payment " ( not a state farm agent )
That said from time to time someone has already paid offf their policy forthe year so if they ad a vehicle they have to pay something for the additional coverage

[bbqfan5909]

Shop the rates my friend. We have a agency that shops with multiple insurance companies. 20 year customers get comfortable and that is when they take advantage imo.

In May I found out we've been with State Farm for 21 years and 7 months. We've only had one claim, in 2003 I think. 100% My fault.

In May I bought Dad's truck. Its a 1998 GMC K1500.

The State Farm agent said they needed a $57 Down Payment before they could add it to my policy.
I was like REALLY!! No Loyalty kickback or anything......

I've been thinking of switching to another company. For that single reason.
Petty i know but after almost 22 years and not one kickback.......

[Pushbutton2]

Did the agent actually say down payment? We add vehicles all the time on policies and do not require a " down payment " ( not a state farm agent )
That said from time to time someone has already paid offf their policy forthe year so if they ad a vehicle they have to pay something for the additional coverage

They did say down payment..
We do the monthly payment.
My credit score probably sucks cause I do not have anything financed nor do I have any credit cards

[drbonner]

I want to know why my rates never go down until I change companies even if I have 0 claims…….

Or you call to cancel because you found the same coverage for half the price and they ask why you didn’t mention it to them that they could’ve adjusted your rates....... I should’ve been getting your best to start with. Lol

[jlp04c]

Yeah, it's one of those crazy deals, premiums up across the board (Home, Auto, Health etc). Alot of stuff is up...

In the last ten years
Groceries are up 27%
Autos (Suv, and Truck Sectors) are up 35-45%
Homes are up 25%

In the last five years, the auto insurance rates are up 27% (average, some up more, some up less)

Add an increase in claims paid via distracted driving, or cat storms, and it's a perfect storm of premium increases..But all of that is really irrelevant, see below.

There are a couple of reasons why people focus insurance costs though, I think the biggest being, it's one of the first industries to be VERY HEAVILY advertised to "Save Money", "Save Money" ads, billboards everything hinges around reduces costs. Well it's counter to what is actually happening right? So it's a social friction. I don't think it's the fact that premiums are "actually" up as much as it is that there is a "preception" that I should be saving money, but instead my premiums are up. Take note, I feel the next big sector to suffer from this will be attorney's /law. Within the last five years there have been a influx of ads/momentum for $100 dollar divorces, or DIY wills (see legalzoom) etc. Same principle, different genre of business. Why would I pay 1k for an attorney to do it, when I could pay $125 for legal zoom to do it. If you repeat that over a vast population of people, pretty soon there is discontent for paying higher prices, even though they were originally fine. It's just a theory though

[elkaholic9292]

So, I buy a new truck for $50,000 and take out full coverage. If I total it the next day the insurance company is out $50,000. If I drive that same truck for 10 years with no claims on it my premium is the same or higher and if I total it they pay out $5,000. That just really burns my beans.

The purpose of insurance is to Make You Whole...to put you back where you were before the loss, in this case...put you back into a 10 year old truck with the same mileage. The majority of your insurance premium is for the “Liability” portion that never changes. It feels this way because liability is a rising tide and your depreciation is a falling tide. Nobody cares whether a brand new $50,000 truck ran a red light and left them paralyzed or a 10 year old beater. What matters is they can’t walk now and it’s your fault. The “Physical Damage” coverages to replace or fix your vehicle does in fact go down as the truck depreciates. Everyone thinks about “Their” truck, but in reality it’s the bank protecting the investment that requires that piece. Pay cash for your truck and you won’t even need that coverage, the state won’t give two chits. Liability is everything...remember that. This is also why coverage in Broaddus TX is cheaper than Harris Co.

[AgHntr10]

Or you call to cancel because you found the same coverage for half the price and they ask why you didn’t mention it to them that they could’ve adjusted your rates....... I should’ve been getting your best to start with. Lol

Amen! Same thing with employers offering more money when you put in a 2 weeks notice. If I am to the point I am offering notice, you should have already been paying me more. Now I'm getting off topic!

[JonBoy]

I don't think a 241% loss ratio means paying out $241 per $1 received in premiums...

Noticed that too...figured it was an overlooked decimal

[elkaholic9292]

I’ll explain why some of you feel the need to move every few years at the risk of upsetting some personal lines agents here. Many Main Street agencies are set up to pay the agent commissions for the first year or two, then the account just goes to the agency’s book required to stay at a certain level to keep the shop open. Volume and referrals are key for personal lines. Is that agent going to work as hard for you on year 3, I don’t know, shop it and find out. This DOES NOT apply to commercial insurance. That agent gets paid every year for as long as he holds the account, and may only have 50 accounts. He/She is more likely to bust it trying to keep your rates competitive in the market.

[Traildust]

I shop my insurance every couple years, just like satelite tv, cell phones, electric providers and car salesmen. What have you done for me lately? You want loyalty, buy a dog.

[elkaholic9292]

Or you call to cancel because you found the same coverage for half the price and they ask why you didn’t mention it to them that they could’ve adjusted your rates....... I should’ve been getting your best to start with. Lol

Yes, there is an inherent conflict of interest here. Agent gets more money for the higher policy than the lower, it’s f’ed up. You are right, and there are books written on “How to become a successful agent” that hit on this theory that you shouldn’t be afraid to present the highest bid to the longtime clients. I personally HATE this model. One theory is that by holding back the lowest bid, you actually leave yourself some room next year when rates go up, to keep the rates the same in the clients eyes by keeping that ace in the hole. There are good people that have bought into this too. I’d rather prove that I couldn’t hold the rates as low this year, but it’s not for lack of trying, and here’s why, than to say I kept the rates the same, but you didn’t know I screwed you last year. Mathematically the first retains more clients because the second always feels like their rates are always going up.

[trailboss]

Here's a thought - don't insure! Then you have nothing to whine about. You can spend your whining time figuring out how you're gonna pay for the loss when the time comes.


Trailboss

[DRT]

My premium dropped $27/month recently.

Gary