Insurance Dawgs.... question...

[RockmartDawg]

I'm going through my annual renewals for both auto and homeowner policies. My homeowner policy is increasing by 20% and my auto policy is increasing by 25%. My homeowner's policy increased by 20% just last year. In 2022 it increased by more than 30%. This is ridiculous.

Is this typical of the overall market?

[Jettdog]

19

[McDonoughDawg]

It's what I'm seeing...too many roofs given out over the years on the homeowners end.  

[JC-DAWG83]

Auto doesn't surprise me at all. Georgia is the #1 worst state in the country for insurance litigation now. A look at all the lawyer billboards will give you an idea of how bad it is. Unless the legislature passes some sort of tort reform very soon the next step is going to be insurance companies leaving the state and then you will long for premiums like we have today.

Home rates are still trying to catch up to inflation and increased building costs over the last four years. Georgia has also had a rash of severe weather events across the state the past few years. I don't know who has your insurance but some carriers have held off on increases trying to gain market share and are having to take rate increases now. It does sound like your home policy increases are excessive.

Look at the value of your home. The company may have increased that to more accurately reflect replacement cost and that will drive up premium.

[Beatledawg]

Anyone here have USAA? Am with State Farm and have been for 40 (something) years, but the cost keeps increasing. Am thinking about trying USAA but haven't pulled the trigger yet.

[RockmartDawg]

I am eligible to use USAA but do not use them. I have checked with them in years past and they didn't offer anything that would have helped me save money. I hear good things about them and then I hear not so good things about them. A common thing I hear is how good they used to be. This comes from old timers who have been with them for many years.

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Yes, my home value has gone ballistic over the past several years. It has sat relatively flatlined, though, for the past year or two. We did have bad hailstorms to come through here this past year... easily the biggest hail I have ever seen in Georgia, with a mix of golf ball sized hail and smaller pieces. But the trend of big increases have been ongoing for several years.

Regarding the auto policy.... I am using Auto-Owners, which is through my credit union. They can get policies from multiple insurance companies. I did speak with a local area Allstate agent a week or two ago. They quoted me a policy and it was more than the Auto-Owners policy. I am driving a pretty old car (more than 15-years-old).... Honda Accord... I do have full coverage. The monthly premium is going to be more than $100 per month. It is more than $90 per month already.

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True dat (hand raised). It's a shame they have to pay out any money. We're just supposed to send them money, not the other way around. 

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Checked my auto policy. In 2023 the policy increased 25%. This year it is increasing 25% again.

I agree concerning all of the lawyer nonsense. My wife got called to jury duty just a short few months after getting her U.S. citizenship. She actually had to sit through a trial, and it was a joke. The trial was from a lawsuit filed by a girl/woman who was riding a Cobb Community Transit bus, and the bus was apparently hit by a car (small car). It was minor damage. Most people on the bus didn't even know the accident had happened. Well, this one girl was claiming that she was injured from that accident. This particular trial was apparently not the first one she had attempted, but this was to be her last option. My wife said that the entire jury was dumbfounded by how ludicrous was the whole situation. They wasted no time in 100% ruling against her. 

People joke about when we landed on Mars and finding a Dollar General store there. I was thinking more along the lines of there being a bunch of these billboards. I have seen billboards for this law firm on both sides of the road, at the same location. I've seen multiple ones within very short distances, as such that you can see both of them. I've seen them darn near all over Georgia... far more than any other law firm I've ever seen.

[ugafan49]

Same here brother. No end in sight.

[McDonoughDawg]

I would strongly weigh the value of the Honda with the cost of full coverage…especially if replacing it would not cause you a great hardship..

JC can weigh in here..

[RockmartDawg]

I have been thinking the same thing. It would not take but the slightest fender-bender and insurance would just total it. I'm thinking of just dropping it to as minimal coverage as possible... maybe not even keep full coverage, although I would much rather have more than just comprehensive.

[viper2369]

I was with USAA for many years until I had to add a teenage driver a few years ago.  Went to State Farm as it saved over $1000 a year for the same coverage.  Said teenager is no longer on my policy, and I've done the online quote with USAA, but it's more than my SF insurance. 

Sucks that it went up about $40-$50 a month after getting divorced and not having a multi-car discount and such. 

That said, at my old house I had to have 4 home owner's claims in about a 4-5 year span.  I expected USAA to drop me, but they didn't. Their customer service has always been second to none for me.  Their rates have usually been competitive, but not necessarily the cheapest.  Once they opened it up to more people (a veteran's 5th cousin twice removed can now be a member through you), the rates started going up.  Inflation doesn't help with that either. 

I've since become a Navy Federal member, had to get a equity loan as part of my divorce, but that's about all I use them for.  I may start quoting insurance and such from them as well.  It's time to start trying to shop around, I just hate doing it.

[mansfielddawg]

The auto is not surprising. The home increases seem steep compared to what I have seen. Roofs over 10 years old are a big deal now too. Georgia is a litigious friendly state as well so lawyers making laws for lawyers to battle lawyers equals higher premiums. Auto Owners and Travelers are doing well for me at the moment but they are all very picky right now.

[RockmartDawg]

I was with USAA for many years until I had to add a teenage driver a few years ago.  Went to State Farm as it saved over $1000 a year for the same coverage.  Said teenager is no longer on my policy, and I've done the online quote with USAA, but it's more than my SF insurance. 

Sucks that it went up about $40-$50 a month after getting divorced and not having a multi-car discount and such. 

That said, at my old house I had to have 4 home owner's claims in about a 4-5 year span.  I expected USAA to drop me, but they didn't. Their customer service has always been second to none for me.  Their rates have usually been competitive, but not necessarily the cheapest.  Once they opened it up to more people (a veteran's 5th cousin twice removed can now be a member through you), the rates started going up.  Inflation doesn't help with that either. 

I've since become a Navy Federal member, had to get a equity loan as part of my divorce, but that's about all I use them for.  I may start quoting insurance and such from them as well.  It's time to start trying to shop around, I just hate doing it.
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I decided to take the bait and use one of those online lookup sites to try to find better prices on both home and auto. Well... I got absolutely bombed with bot emails and bot text messages. I'd check into the "offerings" and they were worse than what I get already. I did get called by one Allstate office, and I got back to them, and they couldn't even offer what I am getting already.

I just say that to advise you to not use one of those sites. You'll get avalanched with a load of worthless nothing.

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I filed a claim last year when we had a bad hailstorm come through. So, I not only now have a brand new roof, but I bought up and had Class 3 shingles installed. Those can supposedly save you money, depending upon the insurance carrier.

[JC-DAWG83]

On older vehicles I usually carry comprehensive but no collision coverage. I figure if I hit a deer my old truck would be totaled and with comprehensive I'd at least get something for the truck.

Liability used to be relatively cheap but, again, the lawyers have ruined that for everyone with the lawsuits. The public is too ignorant to figure out that all those huge settlement numbers the lawyers throw out in their advertising are paid out of premium dollars.

[RockmartDawg]

I think that is the route I'm going to take. Darn if I am going to pay over $100 per month for coverage for a car more than 15 years old.

[Shadrach]

Yeah, that's the market now. The replacement cost of homes has been undervalued for many, many years so carriers are bringing those values up to better reflect inflation for materials/labor. Hail claims, too. Most owners and roofers see insurance as their roof replacement strategy. I just had my roof inspected and some small repairs done. Honest roofer that didn't see hail damage.

On auto, we're fucked. The Glenda Mitchell/John Foy/Ken Nugents of the world assure that. 20% is market for good drivers.

Here's a tort example. In Georgia it is law that when operating a non-farm vehicle you are required to buckle up. The kicker is that if a seatbelt wasn't used in an accident it can't be entered into the court case. It is forbidden to enter that into the court proceedings. A person that didn't wear a seatbelt per law contributed to their injuries, but that can't be brought up in legal proceedings. Dumb, dumb, dumb.

Georgia doesn't have the will to get meaningful reforms passed. Tons of lobby money against insurers. Tons of Democrats in the legislature. No buy-in on tort reform from state leaders. You'll see premiums continue to rise and carriers will exit the market. Some already have. That just means higher costs.

[RockmartDawg]

I don't get the seatbelt part, not being allowed to be entered into court proceedings. It is the LAW that seatbelts be worn (?). My wife and I witnessed a terrible, terrible accident where someone was killed, having been thrown (very far) from the flipping/spinning vehicle, and they weren't wearing their seat belt.

[Concourse E]

FWIW, my auto just renewed and my premium actually went down a little.  

I'm with Allstate, check them out if you haven't already.  I was surprised that they really smoked the rates I was getting from a costco/American Family alliance.  I upped my coverage two years ago and still paid less than half of what I was paying for all the coverages (home, auto, and an umbrella).  They offer a crap ton of different discounts, like for paying it all in advance, for having multiple policies, good driver and driver ed discount, etc.  I have a substantial deductible as well, so they know I'm not going to make a claim on something really minor.

I'm not surprised at the rates going up so much - inflation at the home and car level has been way in excess of the official inflation rate.  And of course, Glenda isn't paying for all those billboards out of the kindness of her own heart.  

In my book, if you are driving a 12 year old Honda, the only coverage you want is liability.

[RockmartDawg]

FWIW, my auto just renewed and my premium actually went down a little.  

I'm with Allstate, check them out if you haven't already.  I was surprised that they really smoked the rates I was getting from a costco/American Family alliance.  I upped my coverage two years ago and still paid less than half of what I was paying for all the coverages (home, auto, and an umbrella).  They offer a crap ton of different discounts, like for paying it all in advance, for having multiple policies, good driver and driver ed discount, etc.  I have a substantial deductible as well, so they know I'm not going to make a claim on something really minor.

I'm not surprised at the rates going up so much - inflation at the home and car level has been way in excess of the official inflation rate.  And of course, Glenda isn't paying for all those billboards out of the kindness of her own heart.  

In my book, if you are driving a 12 year old Honda, the only coverage you want is liability.
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Yes, I agree concerning having only liability coverage on the Honda. I've already called and left a message with my carrier, asking to give me a call. I'm also going to shop for homeowners insurance. It has gone past ridiculous.