[n8xwb]

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!

[billethkid]

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.

[Toymeister]

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.

[Fredster]

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!

[champion6]

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."

[Daddymac]

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

[retiredguy123]

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.

[Jgg7933]

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!

[rubicon]

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

[Jazzcat]

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.

[perrjojo]

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

[logdog]

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.

[autumnspring]

Originally Posted by n8xwb

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!

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.

[retiredguy123]

Originally Posted by Jazzcat

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.

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).

[LuvtheVillages]

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.