What's Up With The Auto Insurance Market

Our auto carrier increased premiums by approximately 25% due to "inflation." A four-figure increase. This is by far the biggest rate increase we received in 25 years (other than adding a car or a driver).

I have several friends who received increases (in the thousands) or outright cancellation notices.  

Does anyone have insight as to what is happening in the auto insurance market?

I don't know if this is an answer, but it made for interesting reading.

https://www.reddit.com/r/cars/comments/1biu61t/why_car_insurance_rates_are_skyrocketing_in_the/

The repair cost for cars has gone through the roof.  Bumpers and windshields are full of sensors, for example.  But also the companies are charging everything that they can get away with.

DanDietrich said:

The repair cost for cars has gone through the roof. Bumpers and windshields are full of sensors, for example.

This summer I clipped the rear bumper of an SUV in the crammed lot behind Village Coffee while trying to squeeze into a narrow parking space that turned out to be a blue-striped not-a-parking-space, which I failed to notice until I had gotten my Civic around that big BMW. I’ve done dumber things, but not too many.

Anyway, how much could a scuffed/scratched/scarred bumper cost to repair? When its owner happens to be visiting from Westport, Conn., and apparently does not believe, as I do, that absorbing scuffs, scratches and scars is what even BMW bumpers are for, the answer was documented in a mechanic’s invoice: $1,300.

Bumper used to be a shaped strip of chromed steel bolted to the front or back of the car.  Now it may also cover a quarter of the side, and it's some kind of plastic, delicate in cold weather, attached to a shock-absorbing metal arrangement, and painted to match the body of the car.  And that's for our 2010 model, without the sensors, cameras, widgety decor etc. etc.

db, very interesting Reddit link, thanks.  Going fwd, i hope it will help to choose a common model, not brand new, so the auto body guys can find used OEM parts.  Ugh, always very expensive, but the shop is immaculate, the guys are professional and nice, and the work is done right.  And nothing we can do will change the truly weird driving you see lately (yes i'm old).

I loathe car insurers. 

Two years ago, someone smashed the passenger side window in my ancient 2005 Altima. I called Geico and asked if I should put in a claim (silly question I know). The agent said, no, since my deducible was $500 and this would certainly be less. So, I paid cash, about $139 to get it fixed.

Fast forward 8 months or so and my renewal notice from Geico arrives-  with a significant increase. I called again and said, Listen, I've made no, zero, nada claims since I've been insured with Geico. Why the increase. 

The agent said "ah, but you had that broken window." 

WTF!?!?

That was it for me, I left Geico and sighed up with NJM, as per the recommendations of folks here and on FB. So far, so good. 

My rating? a double phooey, phooey, with a chunk of what chutzpah! on top. 

Another good company - Amica.

No hike yet but had a strange experience with homeowners policy.  They said they would drop our umbrella coverage if we did not sign up with them for auto coverage.  But in a one hand does not know what the other is doing move, they billed us and accepted payment for the umbrella policy in place now.  

The cost of claims increasing for the reasons mentioned in the reddit thread is definitely a big chunk of it.  Another contributing factor is the rapid increase in the cost of reinsurance, and the need to buy more of it, that's being passed on to the policy holder.  

I switched to NJM last year ( from farmers) premium went down almost 50%

This years renewal is up 16.6%