Automotive

Is it normal the insurance goes up every year with the same cars ?

  • Last Updated:
  • Oct 2nd, 2018 3:04 pm
[OP]
Deal Fanatic
Jun 7, 2005
8205 posts
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Is it normal the insurance goes up every year with the same cars ?

Just got the annual insurance payment bill from Allstate and it goes up again with the same cars and everything stays the same. It went up 4.5% and for my home insurance with the same company, it went up $100 as well which is over 10%. Is it normal ?
21 replies
Deal Addict
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Jul 26, 2007
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Form my experience, it's normal for company that posts their rates on discount website tends to raise their premium. Just shop around again and buy whatever is cheapest. There isn't any loyalty in insurance anymore.
Last edited by peteryorkuca on Oct 2nd, 2018 12:32 pm, edited 1 time in total.
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Dec 28, 2010
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If you accept it, yes.
Try shopping around... I guarantee you insurance brokers hate it when you do it. You have been a good customer all this time. So when you present your newly found quote to AllState find out their real quality.
Actions speak louder than words
Deal Guru
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Jul 12, 2003
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For your Info, I shop elsewhere EVEN they lower my insurance premium, maybe they reduce 5% next year. If you don't shop around, you never know if another insurer can get you a rate which is 10 or 15% lower that your existing insurer.
Retired Forum Moderator February 2009 - June 2015
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Aug 22, 2011
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Yes!
Shop around and switch.
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Jan 16, 2007
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When do you guys start shopping?
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they have kind of special rates for the first year to catch you as a new customer. Next your you can have a raise, especially if that company had more claims in your area. You have to shop around every year, that's what I do. I've been with the same broker, same company for near 20 years, I shopped around every year and they been able to lower their price, but not this years. I changed, and saved $300
[OP]
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For my case, unfortunately, I used at fault accident waiver two years ago. So, if I go any other companies, it will be more expensive with the accident record........
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rdx wrote:
Oct 2nd, 2018 1:11 pm
For my case, unfortunately, I used at fault accident waiver two years ago. So, if I go any other companies, it will be more expensive with the accident record........
Then you can think of the increase as their way of recouping for the accident
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NubNub wrote:
Oct 2nd, 2018 12:59 pm
When do you guys start shopping?
Your insurer usually send you a renewal package a month in advance. That's when I start shop around,
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rdx wrote:
Oct 2nd, 2018 1:11 pm
For my case, unfortunately, I used at fault accident waiver two years ago. So, if I go any other companies, it will be more expensive with the accident record........
Then you have no other choices. You are already getting a better rate than if you are insuring elsewhere.
To answer your question, it is not always an increase, but it happens a lot. Insurance company need to collect enough premium by their customers to pay claims. If there are too many claims from their customers in the previous year or so, they need to charge more in order to have a stable reserve funds to pay out claims.

Also, they paid your at fault claims 2 years ago, probably paying 3rd party's car too. You were one of them who cause the premium increase of others including yourself.
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[OP]
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By the way, I asked them in the past, they said the annual increase is normal as they have inflation adjustment.
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rdx wrote:
Oct 2nd, 2018 1:33 pm
By the way, I asked them in the past, they said the annual increase is normal as they have inflation adjustment.
Yes, things are getting expensive. Labor, materials.
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Aug 14, 2007
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I find my car insurance goes down every year, however my home insurance goes up every year by about the same amount so ends up being a wash.

My car went from 1050/year down to 920 (but I did remove rental insurance). Would have beenabout 970 if I didnt remove it.

Next Year I expect it to go down to about $720/year because I signed up for auto merit which gives up to 25% discount ( I been 2 months into it, and at 20% currently), as well as adding on my gf to my policy.

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