Why the h*ll did my insurance go up?

Discussion in 'Community Discussion' started by Agent Smith, Apr 6, 2006.

  1. Agent Smith macrumors 6502

    Joined:
    Mar 21, 2004
    Location:
    Toronto, ON
    #1
    When I got home tonight, I got my insurance renewal letter, telling me that my annual car insurance went up by $360!!! I have never EVER been pulled over, nor have I ever gotten into an accident. It's my first car (2005 Accord coupe), and I've been driving for almost a year (end of May). It's not exactly going to break the bank, but still...:mad:
     
  2. iGary Guest

    iGary

    Joined:
    May 26, 2004
    Location:
    Randy's House
    #2
    I love being old. I pay that for a whole year. :p
     
  3. WildCowboy Administrator/Editor

    WildCowboy

    Staff Member

    Joined:
    Jan 20, 2005
    #3
    Call them up and ask them why it went up...they can tell you why. Mine went up 20% all of a sudden, and when I called they said that part of it was due to a general 10% increase in my area and the rest was a "good student" discount that disappeared because I was too old to qualify for it anymore (even though I'm still a student).
     
  4. saabmp3 macrumors 6502a

    Joined:
    Jul 22, 2002
    Location:
    Tacoma, WA
    #4
    Wow, you must live in the boonies.

    :p

    Ben
     
  5. iGary Guest

    iGary

    Joined:
    May 26, 2004
    Location:
    Randy's House
    #5
    Nope. Just over 35 clean record, insured with same company 9 years.
     
  6. w_parietti22 macrumors 68020

    Joined:
    Apr 16, 2005
    Location:
    Seattle, WA
    #6
    How old are you? 17? Your insurance probabl went up becuase your young and insurance companies hate and love young drivers. Hate because they are more likely to get in an accident and love becuase they can charge outrageous rates.
     
  7. xsedrinam macrumors 601

    xsedrinam

    Joined:
    Oct 21, 2004
    #7
    I would definitely call them up and find out why. If the answer isn't satisfactory, shop and drop'em.
     
  8. EricNau Moderator emeritus

    EricNau

    Joined:
    Apr 27, 2005
    Location:
    San Francisco, CA
    #8
    It went up because your insurance company wasn't making enough off of you. :rolleyes:

    Insurance is wonderful.
     
  9. Ish macrumors 68000

    Ish

    Joined:
    Nov 30, 2004
    Location:
    UK
  10. cyberddot macrumors 6502

    cyberddot

    Joined:
    Jul 4, 2003
    Location:
    in a forest
    #10

    Ahem...yep...though 14 years with the company and I live in the boonies. I'm still borrowing my car from the bank though, so I pay $350ish every 6 months for a low comp' deductable and good coverage.



     
  11. jadekitty24 macrumors 65816

    jadekitty24

    Joined:
    Oct 19, 2005
    Location:
    The poor section of Connecticut
    #11
    Shop around. Just because they want to jack up the rates does not mean you have to pay them.
     
  12. nbs2 macrumors 68030

    nbs2

    Joined:
    Mar 31, 2004
    Location:
    A geographical oddity
    #12
    Total and class utilization.

    I would expect that the insurance paid out more last year than they had planned, which would cause rates to rise for all theri customers. Additionally (or in the alternative), those in the same risk groups as you utilized the services fo the agency more than planned. As the utilizations get plugged into the actuarial tables, premiums are redistributed in order to maximize the low risk pool and minimize the high risk. Additionally, you do not hav ea history with the company, thus your personal usage patterns have not been significant enough to compare to the general populace (which is why you don't get the loyalty discount).

    In other words, a whole lot of 17yo kids did stupid stuff in cars and because they had to pay for all that, the insurance company is going to screw the entire group.
     
  13. Agent Smith thread starter macrumors 6502

    Joined:
    Mar 21, 2004
    Location:
    Toronto, ON
    #13
    Bloody hell...

    I am 28 (29 in October). I wasn't able to call them yesterday, I'm going to try later on today. If anyone is looking for a conspiracy, forget Oswald being the lone assassin; forget Roswell; it's the sodding insurance companies that run everything.

    They're probably in league with the oil companies which is why gas is $1.03/litre. I picked a heckuva time to get a car. :mad:
     
  14. StarbucksSam macrumors 65816

    StarbucksSam

    Joined:
    Nov 21, 2004
    Location:
    Washington, D.C.
    #14
    I'm sure whatever your insurance is at 28, mine is worse. I'm a 16 year old boy and it's almost 2500 a YEAR. With the good student discount AND driver's ed discount. Never had a ticket.
     
  15. nbs2 macrumors 68030

    nbs2

    Joined:
    Mar 31, 2004
    Location:
    A geographical oddity
    #15
    Agent, I apologize for presuming that you were 17. But, unfortunately the same rules of insurance apply whether you are 17, 117 or somewhere in between. Remember that the insurance company has to make a profit off of its investments (that's how they leverage premiums into enough to pay for all those claims) to cover claims, fraud (and fraud investigations), and still keep shareholders from revolting. Between use above actuarial predictions and higher than expected cost of services, things can quickly go wrong.

    Anyway, maybe you'll do better with another company whose actuaries find 28yos to be lower risks or have lower utilization. But, who knows - most companies have enough data that their rates will be roughly the same since most of their data is similar.
     
  16. ITASOR macrumors 601

    ITASOR

    Joined:
    Mar 20, 2005
    Location:
    Oneida, NY
    #16
    I'm 16 too, and I know, it's terrible.
     
  17. YS2003 macrumors 68020

    YS2003

    Joined:
    Dec 24, 2004
    Location:
    Finally I have arrived.....
    #17
    Some insurance companies base their car premium on the credit rating of the consumers. For some reasons, my former car insurance firm First Trenton decided not to give me the promised 10% discount for the 2nd year because of "not long enough credit history." I know I have the long AND good credit history (no debts and all payments are paid in full within terms at all times). That type of excuse from the insurance company irked me so much (this is a matter of my principles) and I fired them and replaced them with another insurance company. There are so many insurance companies out there who are looking for your business and I will give my business to the company who appreciates my business.

    Anyhow, why is it that the credit history got to do with the car insurance premium?
     
  18. notjustjay macrumors 603

    notjustjay

    Joined:
    Sep 19, 2003
    Location:
    Canada, eh?
    #18
    Yikes. Can't you get insurance under your mom or dad's name?

    When I started driving I was under my dad's policy as an "occasional" driver (it got less and less "occasional" as the years went by though). I think he paid $1700 for me, at first, but that went down from there. Last time I was still on his policy, he was paying $900 a year for both he, my mom, and myself, on two cars.

    My policy costs $1500 a year. Granted, I'm 28, male, and driving an SUV, and I have a previous accident record from 2000.

    To the OP (and any other Canadian insurance shoppers), try Bel-Air Direct and President's Choice Financial, those two were pretty competitive when I shopped around for mine. Both offer a discount for applying online.
     
  19. nbs2 macrumors 68030

    nbs2

    Joined:
    Mar 31, 2004
    Location:
    A geographical oddity
    #19
    Mainly - are you going to make your premium and are you going to be an insurance fraud threat. If you owe a lot of money, you are more likely to commit the traditional insurance fraud of claiming the car stolen to recover the value. Plus, you are more likely to hide defects to the car when making the application - most insurance companies do not require bringing in the car for inspection to verify current condition.
     
  20. Chaszmyr macrumors 601

    Chaszmyr

    Joined:
    Aug 9, 2002
  21. StarbucksSam macrumors 65816

    StarbucksSam

    Joined:
    Nov 21, 2004
    Location:
    Washington, D.C.
    #21
    I mean, I'm not an "occasional" driver. I drive 30 miles to school roundtrip a day, go out to Starbucks or do errands almost every evening, and probably drive 50 to 200 miles on the average weekend... and I'm on his policy, but you have to use my name.
     
  22. IJ Reilly macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #22
    Different states have different rules about how auto insurance rates can be set, but in general, these factors apply:

    • Your driving record
    • Your claims history
    • Where you live
    • What kind of car you drive
    • Your age and sex
    • How many miles you drive

    Some of these factors are obviously more controllable than others, but you might be surprised by how much your rates go down if you choose to drive a small car not many miles a year. You can also increase your collision deductible to the maximum.
     
  23. GFLPraxis macrumors 604

    GFLPraxis

    Joined:
    Mar 17, 2004
    #23
    It sucks, doesn't it? Same here- I'm 18, almost have a two year college degree, student (with above-A average) and driver's ed discount. Never had a ticket or moving violation of any sort.

    Yet we're expected to pay several times more because OTHER people in same age group have a stereotype (stupid teenagers who think Macs suck and run around getting drunk and drag racing).

    Isn't there a discrimination lawsuit in there somewhere?
     
  24. leftbanke7 macrumors 6502a

    leftbanke7

    Joined:
    Feb 4, 2004
    Location:
    West Valley City, Utah
    #24
    My insurance went up like 60 bucks for the term and they pretty much told me that they had increased costs and they were sticking the customer with them. But when I pay in full rather than monthly, they usually knock anywhere from 25% to 30% off my bill so I usually come out ahead.
     
  25. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #25
    In November, mine went up. After contacting the ins company, we were told that we were essentally paying for their Katrina claims. But when my insurance is already 4 grand a year (20, male, 1 accident, 2 door car :mad: ) you don't even notice a small increase in premiums :rolleyes:
     

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