Florida Auto Insurance Rates Rising Rapidly??
 

I have my car insured through USAA which has a reputation for being a great company. I have a 2017 Chevy Volt which is, by the way, a great hybrid. In one year, my six month policy rate has increased almost 25%. I have rounded off numbers but the math below is quite simple. Divide the change in policy dollars by the original cost a year ago. In my case....November 2016 cost $600. November 2017 cost $750. That's a $150 increase. Divide $150 by $600 (150/600) and you get .25 which is the 25% I mentioned above.

I called USAA and they claim this is due to Florida rate increases. I have had no accidents,nor tickets, nor any changes in my credit score. I am hoping some of you Florida residents will spend the time to go back a year, and compare your rates, do the same math and share your results. I am wondering if all insurance companies are raising their rates here in Florida as much as USAA is! Please only spend the time if you too have had no accidents and no tickets during the past year. And it would be nice if you mention your insurance company's name. Thanks for your time!

All one has to do is view the news of the daily and sometimes multiple times daily of crashes in or around TV. The ever increasing incidence rate can only lead to higher premiums.

The state is a possibility. More likely is a marketing decision by the underwriters, you are riskier (older) , a re-rating of the vehicle, regardles of what you think of it. It Is easier to blame the state, though.

When I was looking for Florida auto insurance a few years ago.
One of the quotes I got was from USAA and it was really high.
My current policies 6 month premium is due in January, and it has not increased much at all.
I would suggest you get quotes from a couple other companies!

Yes, rates go up.

I have lived in Fla for six years and have changed car insurance companies twice since first insuring here. No accidents, tickets, claims. When I get upset with the latest increase, I call my AAA agent and ask her to evaluate current offerings. She has always been able to save me money by switching.

If you won't switch from USAA, you can only "grin and bear it."

1*****shop around******
2****shop around *****

I don't think it has anything to do with the state. I have Allstate, just replaced a 13 year old car with a new car, and my rate actually went down. I have heard that, if you are a loyal customer, the insurance companies will raise your rates just because they think they can because you are too loyal to switch. It sounds backwards, but it is true.

Check with The Villages Insurance. Been with them for 4 years. No tickets or claims. Great coverage with glass, towing, vacation interruption etc. Credit score 840+. Paying $692.00 a year (2017) up from $640.00 in 2016. We have seen very few increases in the last 4 years. The type of car you own also makes a BIG difference. We have a 2016 Honda HR-V and our insurance actually went DOWN (vs. previous car) when we bought it new in March 2016. We have Auto, Cart and property insurance through The Villages Insurance. It cost nothing to go down and get a Quote!

A portion of that increase probably came from Irma.
a portion would be attributed to the actuaries future prediction
a portion you can thank Dan Newlin, et al
despite marketing claims, actuaries do tie premium to what they calculate the future market prices to be.
a portion you can thank for those recalcitrant that find joy in exaggerating or faking claims
a portion will be tied to underwriting criteria
an insurance company has a legal and fiduciary responsibility to have monies available to honor future claims
every state audits insurance companies to ensure that premiums are adequate but not excessive and reserves sound but not redundant
insurance companies are heavily regulated
insurance companies take fraud and abuse seriously

I must respond to "retired guy" as his opinion that insurance carriers will increase your premium when they realize you don't shop, is not accurate. I speak as a retiree after 40 years as an insurance agent. As another person commented, the insurance industry is heavily regulated by each state, and can't indiscriminately raise one person's rates "just because". With that said, there is merit in suggesting that you shop around. Most insurance company groups have several pricing tiers, so it's possible that you may, due to your record, or type of vehicle you drive, qualify for a lower premium, perhaps even while staying with the same carrier (Travelers, Hartford, Allstate, etc.)
We too experienced a sizeable increase in rate with this year's renewal (up 15%). Our representative at The Villages Insurance requoted us from Travelers to Progressive and was able to save us nearly $300 a year for our 2017 Subaru. I'm not an advocate of shopping each year, but when rates increase dramatically, it is usually worthwhile.

I also believe that rates increase as your age increases. Is this true?

My Progressive rates have been going down slightly every six months. But I just renewed my six month policy a couple of weeks ago and the premiums actually went up by a buck... Shop around. Villages Insurance will do this for you at no charge.

You can't argue with the insurance company
 

The amount charged comes from their risk assessment.
You CAN and should probably shop other competing companies.
You were told the reason is Flood risk. Perhaps, your company put the entire state of Florida as a flood risk.
Teasing a bit but with global warming all the rage, I've seen maps that suggest the villages will be water front property in 100 years as we are on fairly high ground.
You report no accidents or tickets over the past year.
What you have said is no change last year but, accidents and tickets are on your record. Your company may have done some research into past events.
As to insurance companies name-we have TRAVELERS and have had them for four years.

Actually, I was not expressing an opinion about companies raising rates for loyal customers. I first heard about it on the Clark Howard radio show, and there have been several NPR articles written about it, and other articles about what they call the "insurance loyalty penalty". There have also been a few class action lawsuits. It is called "price optimization". Both Nationwide and Allstate have admitted in writing that they use price optimization to increase profits (Nationwide to the Maryland Insurance Administration and Allstate to the SEC). NPR says that most insurance companies use price optimization. So, that is why it pays to shop around and to not assume that being a loyal customer will get you the best rates.

Price optimization is also used by other businesses to increase profits. For example, some gas stations have computer programs to automatically change the price of gas at certain times of the day because they know when customers are not likely to care about the price (like 2 AM when your tank is empty).

We had USAA auto insurance when we moved here 5 years ago. The premium increased every 6 months, and really jumped when my Dearie hit 70. So we shopped around. We saved several hundred dollars by switching to Allstate.

My hunch, USAA claims low rates. They can only do that by keeping claim payouts low. When you move to a high-claim zip code, or hit a statistically significant age or other demographic, they raise the rates. If you leave, they won't care.

Depends on the company. Most were once tied to credit ratings in addition to profiles. I've been away from it for sometime and they may have adopted new underwriting rules If age were a factor the change would show in the liability exposures only vis a vis the total billing

I changed insurance companies 2 months ago because of an almost 30 percent increase. The company was Safeco.

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Maybe because your car is 6 months older every 6 months? :) What they will pay you goes down because the value of the car is going down as well so your rates could drop a few bucks.

GENERALLY SPEAKING, When people quote how much they pay for insurance and someone else says how theirs is less (or more) without comparing apples to apples it is meaningless. I couldn't possibly compare my rates with anyone else without knowing exactly what their coverages are. There are just way too many variables for any comparison unless you are comparing identical coverages on identical vehicles and that's without considering any previous history (accidents, claims etc).

That being said when we moved down here this year and closed on our house on Feb 1 we went to Villages Insurance since it was most convenient at the time and our rep (Sandy at LSL) went through multiple companies and multiple permutations of different coverages to find us the best deal unlike 2 other agencies we went to.

Even with that, comes January I'll still look around just to keep her "honest." ;)

For auto we ended up with Traveler's with a 1yr policy so we wouldn't have to deal with possible rate changes every 6 months. Never had a 6 month policy up north.
.

My last renewal in August went up 3.8% from Progressive. No accidents, no tickets, 10 year plus customer.

My insurance is through AAA. The rate has increased but no where near what yours has. Try bundling your home owner's and car insurances together.

Auto insurance is highly competitive , shop other companies for the best rates , loyalty to one company is not in your best interests

Your total cost should also include your annual Subscriber Savings Account rebate. You didn’t mention that in your original message. If included, how much would that lower your total cost?

Had the same experience with USAA. Had them when we moved here 9 years ago for the past 40 years. Since then have switched to AAA and All State and now back with USAA. My rates went up about 15% this past August, no tickets or accidents for well over 20 years. When I questioned the increase was told, well your car is now over 3 years old and your wife just turned 76. Discrimination? At any rate I will shop come Feb, only thing to do.

Yes, mine went up significantly. Explanation. Increase in accidents in fla; age of drivers, cost for repairs.... I would love to Pay 600 to 700 dollars. Apparently my coverage is HIGHER for liability, collision and uninsured motorist. With the Hartford

Auto Insurance
 

I have had USAA for all my insurance policies for about 53 years. My auto insurance goes up every six months. No tickets or accidents. They claim it's an age issue and where we live which is populated with old people. You can find cheaper insurance, but get a ticket or accident and then watch your premium increase. FYI they are not writing homeowners insurance policies in FL anymore. I was grandfathered in, but if I moved to another place in The Villages they told me they would have to send an engineer to look at the proposed location to check out sinkhole possibilities and very possibly they would not write insurance on another location.

Ohiobuckeye
 

I hear what you're saying. I came from Ohio, my insurance up there was $523. a yr. for 2 cars, 1 had full coverage the other just collision, in 2012 the same yr. I moved here. I bought Ins. down here 3 months after I moved here. I had the exact same Ins. in Ohio as I do down here, AUTO OWNERS. It jumped up down here to $650. a yr. for 1 car. I've had no accidents as far as it been my fault. I hit a deer in Ohio while vacationing, I had a drivers door window broken out in Texas when a rock in a construction area flew out from under someones tire & again in Texas when they had a hail storm that dented my car everywhere. (hail as big as golf balls, right after a tornado) I have excellent credit rating & no tickets. Before the last claim I was paying $750. a yr. for Ins. It went up to $800. a yr. & no other Ins. Co. would Insure me for less than $850. a yr. Auto Owners down here is terrible. Got to remember down here it's NO FAULT. So if you turn a claim in, it's the same as having an accident. You turn a claim in, you had an accident To me that's a bunch of BS & a rip off. :grumpy: Hope this helps. Merry Christmas!

the simplest solution is to start shopping other brand auto insurers in the five years i have lived here i have had at least 6 different insurers for my car. the companies never have an intelligent answer for why the rate go up. Also there is never any value to you to for brand loyalty. Shop shop shop when they all quote within 25$ of each other then that is the rate . i currently am with American Automobile Association AAA about 200$ less than the previous carrier renewal rate . Shop all your coverage every so often i recently found a much better homeowners coverage for only 50$ a year more. good luck

I was with travelers for 12 years 3 cars. they kept going up even with no tickets and no accidents and almost perfect credit rating. I switched to AARPs Hartford and saved $980 the first year with the exact same coverage. Been with them now 5 years and only paying 5 percent more. The Villages insurance could not come close to their rates. You have to use AARPs group plan with the Hartford to get this great rate though. Great company to deal with. Ask them for a free quote. You have nothing to lose and money in your pocket to gain.

The lowest rate I could find around The Villages/Lady Lake was Allstate. They have proven to be a good office to work with. Tim Bascom Agency 352-753-1177

Auto Insurance
 

Ended up staying with Travelers for Auto for 12 months policy. It increased from $628 to $747 and NO tickets or claims. Overall, they were still the cheapest after extensive shopping. We use Carri Wildman, The Villages Insurance, Brownwood. She is a pleasure to deal with!

Travelers

2018 policy went from $834 (2017) to $1,006 (2018). Same car same drivers.

No accidents, no tickets.

Interesting. I also have USAA and my premium went down by $10 this year. I have discounts for multiple accounts, length of membership, safe driving, etc., so perhaps that makes a difference. I didn't change any coverage.

A Question
 

I asked Allstate for an Auto Insurance Rate. They said it would be over $500 semi annual because I am over 80 although I have had no tickets and no accidents as far back as 50+ years. But they said it would be around $350 semi annually if I was under 80. Is that the going policy for residents over 80? Does everybody charge very high rates for over 80? I would never go with Allstate since that is a lousy way to treat clients. If you have been with them they will not gouge as much when it comes to over 80. :ho:

When you do get comparable rates, take your current policy with you so you can be sure you're comparing apples with apples. Your deductibles, limits of Liability, rent reimbursements, lodging away from home, etc along with your credit score have an affect on the rates, and I'm sure there is a lot more that goes into it. You don't have to wait for your policy anniversary to change to another company, you'll get a pro-rated refund if you cancel it. Good luck.

I've never known an insurance company not to advertise that they have low rates. Geico, to this day, claims to "save you 15% or more on your car insurance" and has for years. Does that mean they are 15% or more lower than everyone else? Of course not. Does it mean they will beat whatever you currently have by 15% or more? Nope. A few years ago, I actually took the bait and called for a quote. I provided them with my current coverage info and had no tickets, accidents, or claims. After running the numbers, they came back and said "you'd be better off to keep what you have".

I think that auto insurance is all about advertising and marketing. These companies are making huge profits. Most people pay premiums for years and years and rarely ever collect much on claims. Personally, I don't think the insurance companies really care much about the claims or relative risk levels because they are making so much money on the premiums. But, they sure care about selling policies because their advertising budgets must be enormous. The best thing you can do is to buy as much liability coverage as you can afford.

Companies that advertise "can save you hundreds" are able to do it by suggesting lower or eliminating coverage.

I suspect there is not one that can do much better when comparing exact dollar for dollar coverage.

And you don't have to change insurance providers to accomplish lower your premium.
Your current provider can write you a much lower premium the same way.

For me the appropriate coverage is the priority not some alternative coverage that lowers the premium.

Penny wise and pound foolish applies here!!

I have USAA also and my rate increase is less than 10% with the same vehicles insured both years. You state your car is a 2017 which likely means you are insuring a newer, higher value, car than you were insuring for the full year last year which generally means higher replacement/repair costs and corresponding increases in insurance rates. I had a significant increase two years ago when I traded cars.

Shop around as with every thing you buy. Auto insurance in Florida has a wide variety of cost. Some Companies here took a beating during Hurricane season and are trying to gouge their clients to make it all back in a hurry

Florida Auto Ins
 

Did not read all the post so this may hv already been posted. It is my understanding that Florida allows people to register their cars w no insurance. So we all have to pay additional insurance if we are involved with an uninsured vehicle. My Fl car insurance is twice as much as up north where no insurance no registration.