Cost of car insurance

[Iowashooter]

Well… I received a lengthy explanation from my insurance agent (details below)… all I can say is

from my agent…

I can give you a brief summary and let you know that on the auto side and what has caused these increases.

1. Cost of New and Used Cars are up 37% Since March of 2020
2. Maintenance and Repair Costs up Approx 29% Since March 2020
3. Car Parts and Equipment up Approx 21% Since March 2020
4. RE-Insurance Cost up substantially and deductibles up on Auto’s due to storm and claim related losses
5. Length of time for service car after claim has increased by 42% and that has led to increased cost for car rental and storage fee’s
6. Car Insurance Inflation hit a 47 year high year over year in December of 2023. The fastest rate of inflation since December of 1976
7. Claims frequency and severity up since March of 2020.

Property Loss Trends

1. Claims have dramatically increased across the US with the costs of the claim events becoming much larger than they used to be
2. Reinsurance is passing more of those costs on to the Insurance Company with higher Deductibles and Claim amounts until it reaches reinsurance.
3. Residential Construction Goods up Approx 38% since March 2020
4. Residential Construction Services up Approx 27% since March 2020
5. Transportation of Freight up 20% Since March 2020
6. Construction Inputs such as Lumber, Concrete, Building Materials, Copper, and steel up on average 37.6% approx. since March 2020. (Good news on some of this is these costs have down a little bit from the peak during that time period)

 

[TheDan]

Well… I got a lengthy explanation from my insurance agent (details below)… all I can say is

View attachment 438739


from my agent…

I can give you a brief summary and let you know that on the auto side and what has caused these increases.

1. Cost of New and Used Cars are up 37% Since March of 2020
2. Maintenance and Repair Costs up Approx 29% Since March 2020
3. Car Parts and Equipment up Approx 21% Since March 2020
4. RE-Insurance Cost up substantially and deductibles up on Auto’s due to storm and claim related losses
5. Length of time for service car after claim has increased by 42% and that has led to increased cost for car rental and storage fee’s
6. Car Insurance Inflation hit a 47 year high year over year in December of 2023. The fastest rate of inflation since December of 1976
7. Claims frequency and severity up since March of 2020.

Property Loss Trends

1. Claims have dramatically increased across the US with the costs of the claim events becoming much larger than they used to be
2. Reinsurance is passing more of those costs on to the Insurance Company with higher Deductibles and Claim amounts until it reaches reinsurance.
3. Residential Construction Goods up Approx 38% since March 2020
4. Residential Construction Services up Approx 27% since March 2020
5. Transportation of Freight up 20% Since March 2020
6. Construction Inputs such as Lumber, Concrete, Building Materials, Copper, and steel up on average 37.6% approx. since March 2020. (Good news on some of this is these costs have down a little bit from the peak during that time period)

Your agent must be lying to you because the Bureau of Labor Statistics wouldn't lie about inflation, right?

 

[dsgrey]

Call around and check. My rate "only" increased 16% this year. Paying $1900 annually for full coverage on a 2019 and 2022 and they both show around the low $30k in value. I hear horror stories of people paying $6k for 2 vehicles though I don't know their driving history, credit score, etc.

 

[2ManyGuns]

Lots of unlicensed southerners on the road.

You mean illegals right...

 

[TreyG-20]

You mean illegals right...

Yup

 

[vmax]

Jeez, yeah that's a lot for essentially three vehicles. The liability only on just one shouldn't be much at all.

I've shopped the hell out of it man

The beater truck is $125/month

I will say that I have to carry 300k in liability and 100k medical due to my company reimbursement for my main truck..but in Texas if you have multiple vehicles you can't have lower liability on one versus the other. Sucks..but in reality its only a few hundred a year extra and with the way things are I have a little better feeling about having that extra

The minimum state requirements are something like 50k..total bullshit

if someone hits you and thats all they have you're paying out of your pocket
i mean...any totaled newer vehicle and a trip to the ER just to get checked and your in the hole

Progressive , Allstate..
The only thing I didn't check was with a local agent who shops your policy around and sometimes you save $ but I want good coverage.
With all of the losses TX companies have sustained..hail.and other weather..then the crazy inflation of parts and labor..
They all have been hit hard.

 

[oldag]

Automakers are collecting driving data from customers and quietly providing it to insurance companies, and the practice has resulted in some unassuming drivers seeing their coverage increased or even terminated due to the practice, a new report reveals.

The New York Times reported this week that car manufacturers like General Motors and Ford are tracking drivers' behavior through internet-connected vehicles, and sharing it with data brokers such as LexisNexis and Verisk, which create "consumer disclosure reports" on individuals that insurance companies can access.

https://www.foxbusiness.com/technol...g-driver-sharing-data-car-insurance-companies

Better read the fine print.

 

[benenglish]

Merged threads because oldag has pointed out a technological aspect we haven't considered in depth. I find that fascinating.

 

[toddnjoyce]

From the article above:

Consumers can find out what data their vehicle is capable of collecting by submitting the vehicle identification number (VIN) at https://vehicleprivacyreport.com/.

That’s a pretty nifty site.

 

[oldag]

From the article above:

Consumers can find out what data their vehicle is capable of collecting by submitting the vehicle identification number (VIN) at https://vehicleprivacyreport.com/.

That’s a pretty nifty site.

And they insist on having your VIN to run the report.