If anyone in the insurance industry can give me some insight on this, I’d really appreciate it. Here’s my situation:
Age: 30
Sex: Female
State: PA
Car: 1998 Toyota Camry 4-door sedan
Accidents w/in last 5 years: 1 claim for $750, accident declared as “no fault”, since the car was parked and I wasn’t in it when the damage happened.
Deductibles: $250 each for comprehensive and collision
What else to tell? I live in a decent area of town. I drive 12 miles each way to work. I’m the only driver in my household, and I also use the same insurance company for my tenant’s insurance.
My 6-month premium is $526.10. This seems insanely high for such a bland car, my age and my driving record. A co-worker of mine is paying about $650 for two cars (a 2 year old Ford pickup and a brand new Acura CL), and she’s younger than I am and has similar coverages.
I did two separate automated quotes with Progressive, one for my real information and one using my sister’s address in GA. They were only different by $20, so it doesn’t appear that where I live is a major factor. I’ve also called around to a few other insurance carriers and they’ve given me similar quotes…the best one I got was only $40 less, but their tenant quote was $20 more, so it wasn’t a great deal.
I don’t get it. Is it the type of car I drive? Where I live? That one small claim? Why can’t I get a better rate??
Well, that does sound a bit high but not astronomical. My guess is a couple reasons:
Your car is still quite new. That will make the collision quite high, in addition to just the fact Camary’s are not that cheap to repair in the first place.
Camary’s are very high on the list for frequently stolen cars. That and the fact that if you live in the city, that will crank up your rates too.
Try shopping around a bit, see if there is much of a difference.
Your insurance rate is not necessarily a personal reflection of your driving abilities.
For the most part it depends on 1) your zip code 2) your age and sex 3) your make and model vehicle 4) prior claim history. Essentially the actuaries tally up all the accidents and sort them by these factors. You get the rate that best represents the overall behavior of the group to which you belong.
The cost to insurance companies for even minor accidents can be tremendous. Look at the insurance company’s bill for a fender bender and you’ll see why overall, insurance costs are astronomical.
Other factors:
[ul]
[li]Closeness to big city - My rates went up when I moved to Arlington, VA, just across the river from DC. It didn’t matter that I didn’t even drive to work anymore (my apartment was a block away from my office).[/li]
I’m moving 30 miles away from DC soon, and I bet that my rates will drop, even if I tell them I’m driving 60 miles round trip every day.
[li]Model of car.[/li]
[li]Even a no-fault claim will zing you.[/li]
[li]Deductable - Try a $500 deductable if you feel assured that you won’t get into an accident.[/li]
[li]Company - Try GEICO. My rates went down 20% for the same coverages.[/li]
[/ul]
Here’a a link to why GEICO will never carry my insurance again. I appear to have the absolute worst luck with insurance.
As far as other factors:
I don’t live anywhere near a big city…Wilkes-Barre/Scranton isn’t exactly a thriving metropolis.
In PA, I believe that claims where the insurance company pays out less than $1000 (or it might be up to $1200 how) cannot be considered in your rate calculation, so that shouldn’t be an issue.
A $500 deductible, in the event that I had to pay it, would seriously straing my finances. Considering that the last claim I had was from a parking lot hit-and-run and I had to pay the deductible on an accident that wasn’t even my fault, I prefer not to go any higher than $250.
I’m beginning to think that the mere fact that I own a Toyota Camry is the real issue here. It had occurred to me before I posted this question that the rate might be due to the popularity of the Camry and it’s high rate of theft. There’s a huge parts market for common cars…I believe Honda Accords are in the same category.
Any other reliable insurance companies out there? I’ve already tried State Farm, and I won’t go back to GEICO. I was considering Erie. Anyone with experience there?
I may be off, but in the OP, you seem to be comparing your rates to your coworker’s rates (while a tad bit higher, is insuring two vehicles, not one). Insurance co’s give discounts for multiple car coverage (and, if you’re insuring two vehicles for one driver, it’s pretty clear that one of 'em is going to be idle quite a bit of the time). so that may be a factor. Your rates are similar to mine (46, female, live in country near the city where I work, drive about 20 mi to work, no accidents ever where I was at fault - they had a major pay out 2 years ago when my car got totaled by another driver - but he was ticketed and my co probably beat up his co outside the poolhall).
Insurance companies don’t care who was at fault. All they know is that you cost them money that they otherwise would not have had to shell out had you not been their customer. I know that is one helluvan attitude but Insurance companies seem to be able to get away with almost anything.
What this basically means is that I can cause your insurance rates to increase by smashing in your headlights with a ball peen hammer* in the middle of the night.
I discovered this when I shopped around for insurance one day. I was curious to see if anybody could beat Geico’s rate. All the insurance companies I called could some how see every single “no fault” claim I had filed with Geico in the past 5 years, and they flat-out told me that these claims make me more expensive to insure.
They said that if I didn’t have these claims on my record (insurance record, not driving record), that they would probably be able to match Geico, but not beat them.
Oddly, Geico has not raised my rates one penny in the 10+ years I’ve been with them. In fact, my rates dropped substantially after two years of being with them because (according to them) I was no longer considered a “new” driver. I suspect it’s also because they see the bigger picture (that I’m a safe driver & have never had any moving violations).
We have our auto insurance thru AAA - I think Travelers is the underwriter here in FL. We found that in both Virginia and Florida, it was cheaper by far than any other company we considered.
Not true in Michigan with AAA. We’re a no-fault state if that makes a difference. My rates cannot be raised for things that aren’t my fault. To recoup the money, AAA just goes after the other guy’s insurance.
Also, unless I’m partially “negligent” (I don’t know the exact percentage), I don’t even have to pay my deductible! Some bozo broadsides me, the $500 deductible doesn’t cost me a cent. I don’t know if that’s a AAA feature or a Michigan law thing, though.
Furthermore, AAA (here in Michigan) distinguishes between “negligence” and “fault.” I once broke my own back window and dented the C-pillar by backing into an invisible crane (don’t ask). AAA told me it was my fault, but I wasn’t negligent, so it didn’t increase my rate at all – and that was a $3500 repair! For some reason I didn’t pay a deductible, either, but I don’t remember if that was because I didn’t have to or the shop was one of those “we pay deductible” places.
I myself have state farm and they’ve been the cheapest for me so far other than Allstate which I say is probably the best one out there providing that you have pretty good credit or that’s what they told me. Geico is just a rip-off for people who have had even one speeding ticket. I would say try Allstate and if that doesn’t work then go back to State Farm. I like them. Progressive I’ve heard is similar to Geico except in the matter that they want a whole year’s pay up front. Good for no monthly bills but bad if you don’t have a credit card. If you’re a government worker then try USAA insurance. They’re pretty reasonable also. Those are the most talked about that I’ve heard of.
You complain about car insurance? And you pay that liitle? In NYC, one has to pay about $526 per month. That’s right, per single month!!! This is despite the fact that accidents went way down along with crime. They say that it is due to massive fraud, but they can easily cut that out.
Jeez, capacitor, where in NYC do you live. I live in Queens and have two cars insured (one full coverage, one liability only ) for about $2500/yr.
Handy,
In NYC, you might get away with registering your car in another part of the state, but if you register it in another state, you’d better make sure you get along real well with your neighbors.It’s not unheard of for neighbors to turn in people with cars registered out of state,or for government employees to check for out-of-state plates in apartment building resident-only parking lots.
You can list your location fraudulently on your insurance application and your claim can be denied and your policy cancelled for material misrepresentation.
Insurance companies can’t “do what they want.” They are regulated by the insurance commissioner of each state. As far as non-negligent accidents go, insurers can’t surcharge for non-negligent accidents, but can use them for underwriting purposes. This means you may not receive a preferred rate, but a standard or non-standard rate.
Think about it…if you have four or five vandalism claims, there appears to be a pattern; therefore, the insurer needs to charge more to match the risk. If you’re rear-ended three times in four months, it’s as likely you ride your brakes, stop erraticly or have no taillights as it is just bad luck.
