Auto insurance

[TexasErin]

So I had been hoping that our auto insurance would go down when it was time to renew....

But it is going from $329 per month to $459 per month. The only thing new that has happened since a year ago, since we are quoting for the whole year, is that DD 20 hit a deer. It literally ran into the side of her car and there wasn't anything that she could've done about it.

DH 47 has no tickets and no accidents on his record and has a 2015 Toyota Tundra. I am 45 and didn't think that I had anything on my record, but they have found something from 2012 that I don't even remember. I have a 2016 Subaru Outback. DD is 20 and has only been driving almost two years. She had a wreck in August 2015 and that was her fault, but she did defensive driving so at least the ticket didn't go on her record. And then the accident with the deer that I really thought would not go on her record. She has a 2015 Toyota RAV4.

Not only is DD's premium going up, but so are mine and DH's, by hundreds of dollars. We have MetLife currently. We also have our home insurance through them, so get a discount. This is also going up. DH checked with Allstate and auto insurance would be the same, but house insurance would be even higher.

Anyone have any recommendations on where to find cheaper insurance....especially with a fairly young driver with an accident on their record? And how can they bring up something on me from 2012!?

 

[tvguy]

First place I would look is with your current agent to find options to get the premium down. What is your deductible? Raising it to $1,000 can save a ton of money. The average driver has a claim every 17.9 years, so 2 claims in 2 years does put you in a higher risk category.
Make and model of cars makes a difference too. Toyotas are popular cars and that makes them popular targets for thieves. That could be adding to the cost of your theft coverage. When I bought my kids cars, I actually had my insurance agent tell me which cars were the cheapest to insure and the ones that were the most expensive. His cheapest list was Ford Crown Victoria. Buick Le Sabre and Ford Taurus. I bought both kids used Tauruses. 10 years later, my son is 30, married and still driving that car, and they are on their own policy with a different company and their agent said having that Taurus is saving him hundreds a year over other cars.
I guess I'm different, I've had 3 tickets in my life, the last one in 1977 and I remember every single one of them.

 

[tasha99]

The deer shouldn't count against you--it's under comprehensive. I hit a moose in AK a few years ago, and USAA didn't count it at all (despite a $2500 claim).

 

[mellvswdw1]

I'm an insurance agent. Just a few things. First you have a young driver with two years experience who had an at fault accident, and in my company she would not qualify for a no ticket/accident discount. Technically, the accident with the deer is a considered a comprehensive claim that should not affect your rates. However, we do look at the whole household and the "likelihood" for more tickets and accidents. It's a computer algorithm that lots of companies use, and this could cause your rates to be higher. Does your daughter get good grades? In my company we give a discount for that as well.

The other thing that can mess with rates is credit. Touchy subject but a real factor that can cause rates to go up. I don't know your situation, just trying to give answers on what I commonly see as issues that can cause higher rates.

As far as deductibles, usually the difference in my company between $500 to$1000 deductibles is minimal. My rule of thumb is if you can easily come up with that amount than you should raise your deductibles, if however it would cause a hardship, than pay the difference.

Lastly, we as an industry have seen a SIGNIFICANT amount of distracted driving claims. Like 500% higher! Your rate increase may not be because of your driving per se, rather all the claims your company are paying out, and that can hurt everyone. It amazes me when I'm at a stoplight and I see everyone one around me, young and old in their phones, eating, putting on makeup...it's frustrating to me as an insurance agent because I want all of my insureds rates to go down! Hope this helps a little bit!

Melissa

 

[TexasErin]

The only thing I can think of from 2012 is that I gently backed into our house. (Christmas Eve, no less! Ho ho ho!) I was backing out of the garage and it faces to the side.... No damage to the house and I'm almost positive that we just paid to have the bumper fixed on our own so that it didn't affect our insurance.

We have good credit. 780-795 generally.

I was thinking that the deer incident wouldn't affect our insurance. But it is going up by almost 50%! And why raise the premiums for me and DH?

DD's grades were good last semester, but I'm afraid that was an anomaly....

 

[mellvswdw1]

I wonder if it's the number of accidents in the last few years, and they are looking at your household as a whole. I promise you all insurance companies are raising rates significantly. We are a semi annual company and we did rate increases across my state earlier this year. Some were less, some were in the 45-50% range. Of course, our underwriting department could never give us a straight answer...grrr. My company is the 800 pound gorilla as far as auto insurance, and we usually start the trend for increases or decreases. My peers in other companies are sharing with me that they are now seeing their companies rates increasing ALOT! I wish people would understand that their bad driving habits affect all of our rates!

 

[MillauFr]

I would just drop the collision coverage. I never carried it on my truck. The only reason I have collision on my car is the lending agency required it so I said fine make the deductible $5,000.

 

[tvguy]

As far as deductibles, usually the difference in my company between $500 to$1000 deductibles is minimal. My rule of thumb is if you can easily come up with that amount than you should raise your deductibles, if however it would cause a hardship, than pay the difference.

It is at the top of all the consumer lists on how to save money, over time, on insurance. It took me about 18 months to save the $750 additional money i would have to come up with when I raised by deductible from $500 to $1,000. If I am typical and have a claim every 17.9 years, in that time I will save $7,500 in premiums. I am amazed how many people still have $250 deductible.

 

[SandyinMonterey]

TexasErin...I feel your pain. We moved from California to Georgia last summer. When we made the change to our car insurance in June 2016, our premium went up barely $100. However, our renewal that just came in for 2017 DOUBLED! Yes, doubled. Only two drivers in the family (daughter is 12) with never a ticket or accident. Plus, I was with the same insurance company for nearly 35 years. We also had home owners thru them as well. Made me so angry. I'm no longer with them. But your question was is how to save money. I'd start getting on the phone and doing some research in your area for different insurance companies. I actually got more coverage for my home for less money. I think what makes it a little difficult for you is the young driver in the family. I remember our new insurance agent telling me to be prepared for when my daughter drives because our rates will go up 150%.

 

[kymom99]

You may want to try a broker. I e never used one but I know plenty people who have. They will shop around to find you the best prices

 

[mousehockey37]

I'm an insurance agent. Just a few things. First you have a young driver with two years experience who had an at fault accident, and in my company she would not qualify for a no ticket/accident discount. Technically, the accident with the deer is a considered a comprehensive claim that should not affect your rates. However, we do look at the whole household and the "likelihood" for more tickets and accidents. It's a computer algorithm that lots of companies use, and this could cause your rates to be higher. Does your daughter get good grades? In my company we give a discount for that as well.

The other thing that can mess with rates is credit. Touchy subject but a real factor that can cause rates to go up. I don't know your situation, just trying to give answers on what I commonly see as issues that can cause higher rates.

As far as deductibles, usually the difference in my company between $500 to$1000 deductibles is minimal. My rule of thumb is if you can easily come up with that amount than you should raise your deductibles, if however it would cause a hardship, than pay the difference.

Lastly, we as an industry have seen a SIGNIFICANT amount of distracted driving claims. Like 500% higher! Your rate increase may not be because of your driving per se, rather all the claims your company are paying out, and that can hurt everyone. It amazes me when I'm at a stoplight and I see everyone one around me, young and old in their phones, eating, putting on makeup...it's frustrating to me as an insurance agent because I want all of my insureds rates to go down! Hope this helps a little bit!

Melissa

Sounds like State Farm. I got the good grades discount years back with them.

 

[tvguy]

Sounds like State Farm. I got the good grades discount years back with them.

LOL. Only year I qualified when I was in High School (1973-1975ish), Allstate eliminated the good student discount. Apparently they discovered good students drive more miles, and get in more accidents. Who knew?

 

[Judique]

Would the relatively newer cars have a higher rate also?

 

[mousehockey37]

Would the relatively newer cars have a higher rate also?

That was a thought I had as well. All cars are about 2 years old.

2015 Tundra
2015 Rav4
2016 Outback

I'd say this is the problem. Rav4's are a very "in demand" car right now. So for your rates to be that price, I'd almost want to say you shouldn't complain. Especially with the newer driver (with an accident record) on the policy.

 

[mellvswdw1]

Tvguy.....you're right, but in my book of business most of my customers live paycheck to paycheck. They are the ones who I have detailed notes when they yell at me for having such a high deductible. We offer everything and don't try to over influence people. Insurance is a double edge sword, you hate paying for it but when something goes wrong and you don't have proper coverage you're mad at me and my team...lol!

Also, I may be everyone's good neighbor...hahaha!

 

[mellvswdw1]

Also, you can't drop comprehensive or collision if you have a loan on your vehicle...just a friendly FYI!

 

[Lvsdisney]

I would find an agent who deals with many companies. Our agent got our rates dropped by applying with a different company. And actually, for DH's motorcycle, he started a new policy with the existing company and got his rates down (based on what the renewal rate was). I don't know how it all works, but he does a great job finding us the coverage we want with better prices.

 

[Hisgirl]

We had an insurance broker compare rates and we ended up saving a large amount of money and switching our house, cars, umbrells and rental home to Auto Owners. I had never heard of them but they are top rated with JD powers. Double check with USAA if you qualify also. I switched my veteran daddy/mama to USAA and they saved money over Amica.

 

[cvjw]

We have 2 younger drivers (21 and 17 year old sons) on our policy with State Farm. Both get the good grade discount - about $100 or so every 6 months. We have a 2012 Subaru Outback, a 2016 Toyota Rav 4, a 2014 Mazda 6 and a 2014 Honda Odyssey Touring Elite.

The Rav 4 is driven by my 17 year old. His premium is less than the premium for his older brother's mazda when he got it at age 16. State Farm said the Rav 4 was cheaper to insure for some reason.

My agent just recently told us to go online and take the AARP driver safety course for a discount. Both DH and I did and it gives us a 10% discount on all 4 policies.

Insurance is just expensive when you have younger drivers and accidents. The good news is that as your daughter ages, the premiums will go down. My 21 year old's premiums started out at $1200 every 6 months at the age of 17. They are now down to under $800 every 6 months. Things will get better

 

[MillauFr]

Also, you can't drop comprehensive or collision if you have a loan on your vehicle...just a friendly FYI!

Agreed. But nothing stopped me from jacking the deductible through the roof to $5,000. I am not concerned about paying to fix my car after an accident. I am concerned about having to pay $450,000 to rebuild my house after an earthquake or pay $2,000,000 to someone who sues me. I definitely need insurance for those situations.