Piggybacking on the "highways are terrifying" post, what kind of auto insurance rate hikes are you guys seeing this year?

Submitted by colenotphil t3_yikh1o in Connecticut

It's well known that auto insurance costs went down during the COVID-19 pandemic, and Geico, my insurer at the time, actually had to pay me a refund based on the fact that I was not driving at all during part of 2020.

Flash forward two years and it seems that driving in CT is worse than pre-pandemic.

Literally the same day as this aforementioned post, I received a notice from Geico that my auto insurance rates are going up a whopping 9.8%, nearly a double-digit increase. I haven't had any accidents or claims during this time. I just compared to Amica and a few other providers, and unfortunately Geico still seems like the best deal I can get.

This is an insane increase in just 6 months (I do 6-month policies); I am curious if you guys are also seeing such increases.

My policy, for comparison:

  • 2011 Honda Civic worth maybe $5,500-$6,500 Kelly blue book value.
  • Bodily Injury Liability at state min. ($25,000/$50,000)
  • Property Damage Liability at state min. ($25,000)
  • Uninsured Motorist & Underinsured Motorist at state min. ($25,000/$50,000)
  • Comprehensive coverage (excluding Collision) - No Deductible
  • Discounts of $170.50 for the 6-month period, including: 1) 5 Year Good Driver, for $122.10; 2) Legacy Renewal Discount, for $30.10; and 3) Multi-Line Discount due to having Renter's Insurance, for $18.30.
  • = Total 6 Month Premium of $673.50 (i.e. $112.25/mo).
    This represents a 9.8% increase from my prior Total 6 Month Premium.
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NeOxXt t1_iujb4hh wrote

The same reason that people think Lamont didn't actually attempt to decrease taxes: values have inflated. A 2011 Civic Sedan with 125,000 miles in average condition is a $7500 car. Value of the car goes up, replacement parts pricing goes up, your insurance goes up.

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Prestigious-Tie2049 t1_iujgfqp wrote

I have AAA and my rates are still going down at about $100 per year, currently at $1467 from $1850 in 2018 when my service started.

2003 highlander v6.

$250,000 bodily injury

$100,000 property damage

I’ve gotten zero notices so far about rates increasing.

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rare__air t1_iuk054i wrote

Other commenters have made very good points. But another driver for increased rates is that there is more stuff that needs to be replaced on a newer model car that's been in an accident. As more and more safety features are added, there are more parts that need to be replaced even if they don't seem damaged. Example: if your airbag goes off the seatbelt sensors have to be replaced as well, because the seatbelt sensors are tied in with the airbag sensors.

Even simple windshield replacements are getting more costly for the insurance carrier, because these days there are more sensors that need to be recalibrated when the glass is replaced. And full glass replacements often don't have a deductible so the carrier picks up the entire cost of replacement. I would assume at some point, there will no longer be a full glass replacement coverage option that doesn't include a deductible.

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shihchiun t1_iuj8n9t wrote

I’m paying like $750 for 6 months for a 2020 Corolla. $500k liability and $100k medical. I’ve noticed small increases (like $8).

5-year good driver meaning… you’ve only been driving for 5 years? Or haven’t had an accident in 5 years? Youth and driving history can make a huge difference. I’m in my early 30s with 15 years’ experience, for reference.

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DarkDeSantis t1_iujeu4s wrote

Pretty sure it's just inflationary, we'll all see somewhere between 10-20%.

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bri1468 t1_iujmcpx wrote

Just about all states are seeing increases due to inflation so it’s not just us. Based on what I’ve seen 9.8 % isn’t crazy. If you can though increase your liability limits above state minimum. You’ll be happy you did if you ever need to use it. That being said it’s still possible you could find better rates. There are so many things that factor into rates everyone’s increase will be different. as someone else said some people are even seeing decreases in rates based on the level of risk they’re presenting as well as their insurance companies “appetite” for that particular risk group. It may be worth it to reach out to an independent agent and see if they can find you a better deal.

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zgrizz t1_iuj625n wrote

And I'm betting you are going to reelect the party of the current insurance commissioner again.

Right?

People.just can't seem to make that cause and effect connection for some reason.

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daveashaw t1_iujlwgy wrote

Do you really think having an Insurance Commissioner be from one party rather than another is going to make a difference in rates for auto insurance? Cars are more valuable now and supply chain issues mean it will take longer to fix a car after an accident, which means you will need the rental car for longer, and rental car rates have increased because of the high demand and shortage of vehicles. You really think one state level commissioner is going to able to wave a magic wand and fix all that?

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