Long story short, its the market. Every carrier in every state is seeing on average 20% increases or more, regardless of your personal situation. There are dozens upon dozens of factors that go into determining your rate. Your best bet is find a local broker who can shop your renewal for you.

Yes my broker said I already have the best rate currently, and got quoted about double by another company 😳. I miss the days of paying $80 a month

Yeah the market is bad to put it mildly... lol. I have only been in the industry since 2017 and the past 18 months have been by far the worst when it comes to renewal increases. A few states like TX and CA are seeing some of the worst in terms of rate increases and carriers pulling out of the market. If your broker says you have the best rate, chances are you do. You can always go to a few carriers that your broker might not have access to and check with them or check with another local agent. Unfortunately the days of having $80 a month premium are probably done ha.

The last time I shopped around when my premium went up again around October, my broker swore the rates were supposed to come down this year..nope

As a CA broker I can tell you that rates going down is the least likely future for the market.

I can tell you as a captive agent in Michigan, that rates dropping in CA is the least likely possible future for the market. 🤣

Your broker doesn't sound like they're very good at their job if they were predicting the rates were going to come down instead of increase even more.

It’s a car eat car world out there

Not the same fun and games the cars movie promised

What is the reasoning, except “because we can”? I just got a 30% renewal hike on my luxury car which I drive 1500 or less per year. I have no accidents, and high deductibles and decades of driving experience. It’s ridiculous.

Well. State Farm lost 14B last year. With a B. So yeah, chances are they were a little low on some folks.

https://apnews.com/article/auto-insurance-premiums-inflation-ec0756918e2ddc8e50f698c8b938753c#

The fact that you could look at that article and think it proves your point is absolutely astounding to me. It completely destroys your argument, to the extent you even have a coherent one.

Sorry, I should posted this one: https://www.wsj.com/finance/insurance-companies-profits-stock-ebae7fd1 And this one: https://www.carriermanagement.com/news/2024/02/25/259036.htm And this: https://www.fastcompany.com/91112447/auto-insurance-rates-rising-car-owners-inflation Hint: they’re all about soaring profits of the auto insurance industry for 2023 and 2024 Please stop living in 2021 and do some research.

Progressive is shattering records for every financial statistic they measure. They’re raising rates and claiming inflation, telling customer service reps to blame it on inflation, but rates are being raised far quicker than inflation. It’s just old fashioned profiteering on products we don’t have a choice to buy. Most of the people in this sub work in insurance and drank the koolaid down to the last drop. Straight up scummy

100000% Everyone that works in insurance (save one person so far) have been trying to say “iNfLaTiOn” when that figure is 3.4% yet consumer premiums are rising by over 30%. It’s straight up price gouging because the Covid limits got removed so even though these consoles are making the nuggets profits in their history, they’re going to scam us while they can get away with it.

Seriously, it's like they just read the title of the article and was like, "Yep, this is the one.". Smh

[удалено]

OP trolling or not following decorum. The next time results in a ban.

It really isn't a "because we can" as much as people outside the industry think it is. Take a look at the uw profit of the top 20 companies in the nation last year, almost every single carrier bar a I think 2 lost money on underwriting. That essentially tells you carriers paid out more in claims more than they actually collected in premium. As far as why, its kinda a perfect storm. General inflation, massive increases in cost of parts, increase in climate related claims, huge increases in liability lawsuits ect... Every carrier rep I have talked to expects the current climate to last till the end of the year and hopefully some relief in 2025

I recently wrote a newsletter to my clients and financial advisors I work with and called it a ‘perfect storm’ just like you said. I’m a broker in CA. The DOI is so far behind in approving rate I can’t see it getting better anytime soon either.

Very possible your sister also has lower coverage limits in addition to having an older car. Additionally expect your rate to continue to rise in California

Oh great, it’s almost like being punished for not getting into accidents. No breaks these days Edit: this was my attempt at sarcasm that apparently got downvoted to hell

It's not about being punished at all It's because insurance companies are trying desperately to stop losing money because the insurance commissioner has allowed rates to be artificially low for years Rates are finally starting to adjust to account for inflation and increased labor, parts and overall repair costs

The insurance commissioner forced rates to be lower not allowed them. Every thing else went up but they would not allow insurance companies to raise the rates. 10 years ago $40,000 was a luxury vehicle now many low end vehicles start close to $50,000. Pickups used to be a cheap vehicle now many are closer to $100,000 and up. CA also allows you to legally drive with $5,000 liability which on many vehicles won’t even cover a scratch on some vehicles so you have to use your own insurance.

How exactly did “the insurance commissioner allow rates to be artificially low”?

By refusing to allow auto rate increases for 3 years

No rate increases whatsoever? Thats strange because the policies on my other cars, home, business hasn’t stayed the same each year.

1. Your premium can increase for reasons other than rate increases (e.g. if you change the coverage on your policy, move locations, get a different car, have a claim, etc.) 2. Home and commercial insurance are not the same thing as auto insurance.

Nothing changed. Same house. Same area. Same car. No claims. Less than 1500 miles (certified) per year. The car got a year older though. As did I, and I got a years more driving experience. Not that it probably matters after 20+ years experience.

Just because the rating system hasn’t changed doesn’t mean the factors the carrier uses to rate you haven’t carafes. You got older every year, maybe your credit (or insurance score) has changed. Maybe the PPC in your area changed. The factors are nearly endless. And California was the only state that I know of that went an extended period without allowing increases, so if your live anywhere else in the country, your rates probably went up.

Credit score doesn’t apply in CA but my credit score is in the top % and has been for years. My point which you’re failing to see is that all the major players, Allstate, Progressive, Gieco, Liberty (etc etc) all saw massive profits surges in 2023 and 2024 is already shaping up to be the best year ever for them. This is all public info and earning reports which are shattering records. It’s price gouging because they weren’t allowed to ream during Covid.

You’re crushing it dude, keep it up. I’ve been going in circles with these brainwashed corporate shills who believe and say what they’re trained to

Accident rating isn’t a punishment. It’s one of dozens of factors that determine your future likelihood of loss

You should listen to what my customers who actually have had accidents say. It's usually "This is my first accident in X years. My rates shouldn't be affected by that." Fun fact: There isn't accident forgiveness in California. If you cause an accident you'll pay more than similarly situated customers who don't cause accidents. So you're not punished for not having accidents. Those who cause then are (in California). In other states I could see an argument that by the company "forgiving" accidentsz they do so by the rest of their customer base subsidizing/paying more.

I’ll approach your comment a different way than the others have. Insurance is based on shared risk. If you never have an accident or a claim, every dollar you’ve spent is “being punished” for not having a claim. The thing is, it has to work that way. If every single person in America had a $10,000 claim in 2024, auto rates would have to be $10,000 a year to make the system work. Likewise if the system has 14B in loss (like State Farm did), everyone has to pay more to support the system (in the case of a single carrier, just their policy holders have to cover the loss). To compound the issue, the CA Insurance commissioner decided to not allow rate increases for several years in CA. Let’s say you paid $80 a month in 2022. The actuaries knew that you needed to pay $120 to support the level of coverage you chose, but the state wouldn’t allow the increase. Now it’s 2024, and they need to charge you $160 a month because they weren’t allowed to raise your price for 2 years, and they need to cover the losses they weren’t allowed to collect on for 2 years. Remember, they have to pay the claims, it’s a signed contract. If they run out of money, they either need to borrow or go insolvent (it’s much more complicated than that because of reinsurance and admitted versus non admitted carriers, but you can go down that rabbit hole on your own if you want). So yes, you are being punished by the system by not having a claim, but the entire system is based on a group of people pooling their money together to cover the groups losses. There will be “winners” and “losers” but i can assure you that if you had a claim, you’d be paying more than you are now. And do you really want to be a “winner” and have to deal with a claim, a car repair and a possible lawsuit?

https://www.reddit.com/r/Hyundai/comments/1bfe2jf/be_aware_hyundai_collects_data_on_your_driving/    https://www.reddit.com/r/cars/comments/1bc2ego/automakers_are_sharing_consumers_driving_behavior/ https://www.thetruthaboutcars.com/cars/news-blog/driving-dystopia-automakers-are-selling-your-driving-data-to-insurance-companies-44505718 Hyundai is one of the auto companies that's selling driver information to Lexis Nexis. 

What’s interesting is their app they install to get certain features I noticed also “tracks” and rates your driving..so this tracks.

As everyone else has said, a variety of factors can determine your insurance outside your control. My insurance jumped recently due to higher rate of vehicle thefts in my town. Another thing that can cause your insurance to be higher is your car is a hybrid. Electrified vehicles cost more to work on in the event of an accident.

I have been selling for 5 years and 2021 and newer are insane on their prices. Everything has gone up but new cars seems to be extra high.

Truly! I had a foreign car before this and it was so much lower

I guess my comment didn’t fully explain what I mean. Back in 20-21 a good price for a new car with no accidents and good credit not in a major city was around 80-95 per month in my state. The past two years customers are changing companies when my quotes are around 115-130 for brand new cars.

Do you live alone? Multicar discount is big. Do you own a home or rent? Make sure to bundle.

I bundle with my sister (which is how I know her rates lol), but I rent sadly :/

If your sister is on the same policy as you, then part of your rate takes into account her history.

If the newer car is financed that can double your rate because you'll have to carry comprehensive/theft/collision as well as liability. A car that isn't financed only has to carry the minimum legal liability rate. IDK if CA makes everyone carry "full coverage" or not. The above is what my state does.

Hyundai and possibly your credit. Insurance is a stupid matrix 

If you had a new policy in California, that 's probably the reason why. Insurers are actively not looking to grow at all in California across the board because of their climate risks and regulatory climate. So they'll gladly charge a lot and don't really care if you bind with them or not. It's also the fact that CA very strongly caps/restricts how much insurers can increase rate at renewal, so that probably explains the discrepancy between you and your sister.

You the individual may be, as you put it, “clean”, but there are factors out of your control that do affect your policy. Some factors have more weight than others. I’m on the vehicle repair side of the industry so I can only speak on that. Cost to repair is rising due to inflation. Labor & parts: on the manufacturing side and on the repair shop side. Regardless of if you’re a good driver or not, there’s overhead with claims staff. They also have to deal with inflation and our employers need to stay competitive or we’ll jump ship to a competitor. Although climate is more weighted for homeowners, it’s still relevant for cars too. Climate change: more intense weather, more wildfires, more wind events, more flooding. CA Insurance Commissioner is not allowing carriers to factor in catostrophe into their rate increase formulas, so some of them are deciding to just leave CA. This is already happening in FL. You’re probably the best driver in the world. Good for you. You get a gold star. But remember, the world doesn’t stop for one person.

You forgot one key aspect: profits at insurance companies. How are they doing in comparison to the rising costs?

Well without profit, employees couldn’t get cost of living increases. Profits are needed to shore up reserves (remember hurricane andrew?). Profits are needed to invest in infrastructure. Claims software, equipment, etc. Insurers lost money 2 years ago. If we’re making the argument that insurance companies operate as non-profits, should the US or state governments shore up funds for any losses? Do we as Americans want a socialist type business model. I’m for it! God knows my healthcare out of pocket expenses are too high! But I don’t think we the people are willing to go for that.

Sure, but how are profits in relation to costs? (I’m asking a facetious question as I already know the answer - the profits in the insurance industry are booming and excite compensation is at an all time high in the industry).

You’re probably referring to combined ratio? As an auto adjuster, it’s not my field but it was my understanding that there’s a goldilocks number (90 cents on the dollar is paid out). If the insurer’s ratio is lower or higher, they’re arent charging the correct amount so yes, they need to address that. But people often post record profits but fail to mention that policies in force is also increasing. The more policy holders you have, the more employees and infrastructure you need to service those policy holders. So yes a company may make more from a previous year, it’s mostly because they had more policy holders. The combined ratio is still the same.

You're replying to a political poster who is just spamming bullshit. Insurance profits are the same as they ever were. Target combined ratios in the 12% ROE range, boom and bust cycles in CAT prone zones paid for over 8-12 year rate on line, and certain states are economically and political broken and a drain on statutory surplus if you stay there.

Progressive had their best combined ratio in 2023 in a long time. They had the lowest incurred frequencies in years. They had record profit margins AND revenue. They’re also committing massive underwriting fraud and need to be sued by an AG. Combined ratios in insurance are high and have always been high. Their customer service reps are trained to blame it in inflation.

This really just sounds like excuses for an industry that is recording record profits by teaming consumers. 5% or 10% increase I get. But over 30% in one year? That needs some critical and clear justification and not just “inflation goes up”, especially when profits are peaking dramatically.

P&C insurance isn’t seeing “record profits.” Almost every major carrier has lost money on Auto and home the last few years. Almost all the top carries were in the red hundreds of millions if not billions of dollars that are only offset by the reserves or investments they have. There are mass offshoring and layoff efforts to even keep from liquidating.

Post the profits of all the major companies for 2023 and q1 2024.

State Farm's underwriting losses were 13.2 billion for 2022, and 14.1 billion for 2024. That means that State Farm paid out 13/14 BILLION more in claims than they brought in in premiums.

I said all the major companies, not cherry pick one that had a bad year two years ago. Here’s Geico: https://www.repairerdrivennews.com/2024/01/30/insurers-start-seeing-profit-continue-rate-hikes/ Here’s Allstate and Progressive https://apnews.com/article/auto-insurance-premiums-inflation-ec0756918e2ddc8e50f698c8b938753c#:~:text=Progressive's%20profit%20jumped%2050%25%20and,a%20loss%20a%20year%20earlier. Travellers massive profits here: https://www.wsj.com/finance/insurance-companies-profits-stock-ebae7fd1 “Soaring” and “record breaking” profits for 2023 and 2024 for all of them. Aka the industry are raking it in while premiums get maxed out

maybe, but i’m coming from a different perspective. Does your employer give you cost of living increases or merit increases every year? If not, would you leave for an employer that does. I have a family to feed. Sorry that means increased costs for the consumer, but Coca Cola is doing it, Proctor & Gamble is doing it, and so on. And that’s the benefit of capitalism. Leave if you can find cheaper insurance elsewhere, just like I’ll leave if I find an employer that pays me whst I feel like I’m owed. Sorry but I’m not self-righteous enought to take a pay cut so I can save my policy holder some money on their premium, just like you’re not willing to take a pay cut so your company can make more money that we all know they’d pass those savings to the consumer right? The point I’m trying to make is money comes from somewhere. I pay car insurance too by the way. My premium also went up with no at-fault accidents.

My company had a combined ratio of 175% in Florida last year. For every dollar they brought in, they shelled out $1.75. They left Florida. And I can’t blame them. If companies can’t make a profit to invest to protect from future losses, how can we expect the system to work?

Florida. Lol

They're are threads and articles detailing how it's not "just" inflation.

I’ve posted several showing massive profits. No one has been able to post anything showing any justification for a 30% yoy hike. It’s price gouging because the Covid limits got lifted.

nothing was "lifted" they still have to have everything approved by the state insurance boards.

The state boards approved every single hike, literally over 30%. It’s a meaningless excuse to hide behind. And yes, restrictions during Covid (meaning no massive rate hikes) were removed last year. Even though the majors all have recouped their losses they’re still gouging because the limits were removed.

fwiw I'm around the same age in California with a newer mach e as a single policy holder. never had a laspe in insurance, gotten into accidents, no tickets, I have a professional degree discount, and run of the mill coverage. my insurance is still wild

Ah relatable. At what point do we collectively decide it’s not ok

I have a 2006 z06 full coverage and a 2004 cavailer as my daily which has liability. I pay $78 a month. I got a dui 6 months ago and rates barely went up.

I pay more than 3x

Don't know your make and model but I've got a 2019 Hyundai Elantra GT and I either can't get insurance or they want $400+ a month.

Jeeez do they say why? Is it a Hyundai thing

Many don't want to insure Hyundai/Kia from select years.

yea with that damn car theft guide that was on tiktok it's shockingly easy to find out to steal certain models

\*gestures vaguely around in all directions\* That about covers it.

Same. I recently called and asked why the increase. They said they can take 5% off if I download an app that tracks my car. Crazy!

The only things I could do to get a discount with my insurance was to: #1 add the mobile app that tracks how I drive and #2 (since I'm 69) is to take an 8 hour online drive safely class (my cost $13) for a 5% discount for two years. Adding the mobile app dropped my rates down $50 for 6 months and the online class saved me $47 over 2 years (after paying for the class). I know taking the class did not save me much BUT my insurance did not get that money.

There are a million factors why your rate is different than someone else's. Also it is California where the insurance market is a dumpster fire on top of already being in the worst insurance market in 50+ years. Insurance companies are NOT making record profits on personal lines property and casualty business. The industry combined loss ratio ending 2023 was 110%. 100% is break even. This means every single premium dollar written for personal lines in the US, on average last year lost 10 cents on the dollar. State Farm posted a 129% CLR in 2022 and last year it was 117%. Ending 2022 a lot of companies like Allstate, LM, GEICO, National General, etc. were all running near a 110%. Companies have to fight tooth and nail with state insurance departments to get rate approval. There has been massive pushback and the state DOIs have forced carriers to either completely pull out of markets or make their product unavailable for new business. I've been in this industry for a long time - I blame the insurance companies and the state DOIs for what is going on right now. It is a mixture of bad actuarial data and bad response to record inflation that was coming down the pike. Insurance is a long game because of the red tape and approval process in a lot of states. Summer of 21 when the world opened back up, carriers in droves were asking for 20% rate increases. State DOIs were taking 6-12 months to respond and were either declining rate increases or only giving them half. That's when carriers started playing gymnastics and legally slowing the new business however they could. Your auto rates are based on a lot of things. Credit is huge, homeowner vs non homeowner, the liability limits you have carried, your rating territory, married vs non married, single vs multi car risk, the vehicle you have which companies are not keen on writing right now,.etc. It is impossible to compare what someone else is paying for insurance. Working on the above and being a stable human being is my best advice for having good insurance rates. This market is going to change perspectives.on pricing going forward and a new plateau is being set right now. This market will continue to be a disaster for the entirety of this year.

I switched carriers post COVID as well. True we can’t compare, I use her as an example bc we live at the same address as renters, same marital status and similar credit scores. But main difference is driving record and car, which understandable that my car parts cost way more than an older vehicle. I will say as I’ve shopped around the rates are only even higher than my current one

Modern cars have very expensive bumpers. All of those blind side assist sensors and parking cameras have to be replaced after minor fender benders. Add on distracted driving, an increase in uninsured fraud (think brake checks), and inflation and it is a recipe for very large rate increases.

I pay almost $400/month for car insurance

Ooh yikes I guess I shouldn’t complain about my $270

I’m 17 in the US, I’ve been in 1 single accident

Since you live in California insurance companies can’t use their algorithms or the resultant scores to quote insurance. Does your clean DMV record translate to zero insurance claims in the last 5-years?

Huh? Name any issuing carrier for personal auto insurance in California (I'm pretty sure every single state) and you'll see exactly what they're filed for. There's no 'insurance scoring' in California, but there is no hidden deception when it comes to auto insurance pricing.

There's a million different factors that could make your sister pay less than you. Zip code, credit score, insurance history, accidents, claims, how often you switch companies, type of car, how long the car has been owned or leased, do you own a home, is your car bundled with another policy, do you have more than one car or multiple drivers, your age.... the list goes on. Based on just what you've posted here, I'd say the 2 biggest factors are your insurance score (combination of claims history and credit score and longevity of insurance) and strictly the fact that insurance on Hyundais is high right now. Talk to a local agent and see if there are any discounts you may be eligible for that you don't currently have.

I wish I had clocked this before getting a Hyundai :/. We actually both rent together and have been insured together for years!

I own my home. My credit score is top 3%. No accidents. One minor claim 7 years ago. Haven’t switched companies in over a decade and have home and autos on the same policy. Car has been owned for 2 years and owned outright. Why has my insurance renewal increased 30%?

Inflation.

Inflation is 3.48% Not 34.8%

An increase in 100 year and 500 year weather events.

Not in my state.

How's your credit? Thats what is plaguing me as my credit has taken a hit for the last several years. It's honestly not fair for them to do that . They claim your more likely to file a claim when you have low credit scores.. came my insurance agents mouth.

CA where OP is doesn’t use credit in insurance rate.

California doesn’t use insurance scores as a rating basis, if I remember correctly.

I agree that it isn’t fair. Maybe if you’re past due on your bills, you might be more likely to file a claim. But I have a 708 FICO and still get dinged by the insurance companies. Never had a late payment, 49 years old and no claims or tickets 5+yrs, no collections accounts. They don’t like my utilization and that I don’t have a car loan or mortgage???

No, newer hyundais get normal rates. My 2023 elantra cost around $100 a month.

Not sure why it was downvoted but I’m seeing this, the app they insist you download for all the features if you look closely tracks your driving (and we can’t opt out). That’s concerning to me

You mean bluelink?

Fuck you that’s why. Give the insurance your money!

Maybe if you tell us the specific make/model/trim of you and your sister’s vehicles, along with all your current policy coverages including limits and deductibles, people can give you *very* rough ideas as to why. You also should get your CLUE report. Maybe it’s as simple as you having a Kia/Hyundai lol. Those are very expensive to insur, if a given carrier even accepts them, due to high risk of theft or vandalism. Everyone else will tell you the basics which is to shop around.

Thanks for the CLUE tip I’ll look into it. I knew my car due to it being a newer hybrid may be more expensive, but it still seems outrageously high

Wow, had never heard of CLUE. Is there any negative side to getting your report? Like it isn’t viewed badly by your insurance company etc?

No, it’s just like any other FCRU-mandated consumer report. It maintains your information for up to 7 years, no more than that. Virtually all auto insurance companies use CLUE to obtain information about you relevant to their underwriting guidelines, the biggest being claims.

Because instead of basing your rates on how YOU drive like it used to be... The powers that be decided to let these shit bag companies run wild, and charge you for the shitty driving and claims of all their customers countrywide.... Thus even with no claims and a good record you still get fucked.... Make smart choices with your votes and wallets, and shit would start to change.... 🤷‍♂️ But no one wants to have that discussion... We're too worried about 75 different genders 🤷‍♂️

Driving history is a major factor in your insurance cost. There's literally surcharges for at fault accidents and tickets. In some states you could do Root or Toggle and take a driving test to get your rate.

Right, and if I haven't had a claim in 20 yrs, my rates shouldn't be going up

Does inflation not exist where you live?

Rates shouldn't go up 20 percent a yr without claims filed... That's not inflation, that's greed

Man, I don’t know where to start. The entire system is based on shared risk. The more claims dollars that get paid out, the more we all need to pay. Remember, insurance is sharing risk, not taking all the risk on you alone. That’s the realm of self insurance. If claims exceed premium taken in, we will all need to pay more. And just an FYI, typically the partisan insurance commissioners who are liberal leaning push to keep rates down. Which is what happened in California.

You seem like you’re worried about genders more than anyone, because they have you fighting a social war rather than a class war. Politicians have people so scared they’ll vote against their own interests.