Posted on 07/14/2021 9:11:48 AM PDT by Sequoyah101
As anticipated, insurance rates are going up not just a little.
Received my annual bill yesterday. It reflects an 18% increase in premium. All of the increase is in the replacement cost. None of it is an increase in insurance rate.
If you haven't already you'll get your bundle of joy soon.
Covid is the gift that keeps on giving.
Is this for homeowners’ coverage? Car insurance?
My auto insurance rates recently went up because the state (Washington) Insurance Commissioner ruled that auto insurance companies can no longer use your credit rating when setting rates. So responsible people are subsidizing irresponsible ones. I guess responsibility is one of those racist things we’ve been hearing so much about.
First time in 34 years of owning a house that we made a claim (only two of those years in Texas; the other 32 in the Bay Area). Can't wait to see how it will impact next year's rates, even though the insurance company indicated it won't.
Don’t worry, the Federal Reserve says inflation is transitory.
Your insurance rates will soon drop by 18%....
I had a barn burn down in 2019 and a $50k+ motorcycle accident this year, mine was going up anyway :/
Insurers are obligated to rebuild your structure up to the building limit on the policy. And better Homeowner policies go beyond this, promising to absorb addition costs up to 125% of the limit you purchased. Some even guarantee to fully rebuild regardless of cost. But for insurers to remain profitable and in business, they must accurately estimate replacement costs, and update them annually to reflect labor and material changes.
As building costs shot up this year, you and I were fully protected because our insurers are obligated to pay “extended replacement cost” even though they priced our policies on building costs that were much lower when our current policies were written. Now the insurers are having to adjust the estimated replacement cost bases to protect themselves - if they want to stay in business.
This is what all Property insurers are doing with renewals. It’s not the rates that are increasing, but the values being insured. I hope this helps.
I changed companies...Had a 25% savings.
I was told by the company I have insured with for 20 years (with no claims) that there was nothing they could do...replacement costs, etc.
So I called a competitor, and they gave me the same replacement cost coverage etc. but 25% savings. I asked about the difference and they said that it was likely because carriers will go into an area/state and re-rate everything...So likely my new carrier hasn’t done that. If they raise my rates, I will shop around at that time.
I also re-rated auto because we are not driving as many miles annually.
If it's for car insurance, one possibility is it might have gone down last year and is now reverting to norm. My car insurance went down last year, with a letter from my insurer saying they were giving a discount to all their customers because many are struggling financially and, basically, fewer people were driving anyway.
Thus, I expect it to go back up to at least what it was pre China virus.
My homeowner’s insurance premium doubled here in the Sierra foothills because of all the claims from fires throughout California. I’m not in a designated high-fire potential area but there are trees in this semi-urban neighborhood and the afternoon breeze sometimes exceeds ten mph.
With all the weird weather going on, homeowners insurance has been increasing. I know it’s a cycle but I wish the weather would even out again.
“My auto insurance rates recently went up”
I found a more competitive auto policy. Went from $850 for 6 months to $520. So I lost the combo discount from the one company.
At h/o renewal they got all the $$$ back and increased my yearly h/o premium by $500.
This is what you get when 99% of h/o’s are forced to insure by mortgage holders. We have no mortgage no more. Like that grammar! But with a few tenants we like being protected by h/o ins.
Home
Car was almost flat.
Probably has more to do with President Retard and his out of control inflation than it does COVID.
Homeowners insurance went from $2800 per year to $4400 per year in March. Progressive car insurance for 3 cars, none newer than 2008 paid for, went from $4800 a year to $6200 per year. I shopped around and reduced those by only a few hundred.
Oh and my home has a new roof and 1 year old AC unit.
My homeowner’s and automobile insurance (4 cars) are each about $1200/yr.
I totaled my F-250 and she totaled her Explorer about 2 years ago and both were our fault. I hadn’t caused and accident in decades. But I can see why people roll with no car insurance. Let’s see, pay the $150 fine for no insurance or $520 a month for our beater cars? Tough choice, but I’m still legal.
In Georgia? Alabama?
Washington state.
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