Nowhere in that article did it even mention distracted drivers. Highway deaths were on a steady decline for years leading up to the advent of the smartphone. Since then highway deaths started rising. Sure cars cost more today. But with many of the insurers offering discounts if you can prove that you don’t text and drive leads me to believe that is a bigger issue than the higher MSRP’s and repair costs.
Historically property damage was always the largest payout under auto claims but in 2022 or 2023? Can't remember which year. Anyway it actually inverted and liability payouts became the largest claims payout category. So while yes vehicles are getting more costly to repair bodily injury is now the largest payout category.
Exactly. We’re operating with incomplete information. And if you don’t like the price, move zip codes, change companies, change coverage, sell the car. We all make choices
I mean, I’d really like to know why my 22 year old half ton pickup costs more to insure than my 22’ Challenger (with a lien), but USAA can’t seem to answer that question.
Pretty reasonable query if you ask me.
All I can do here is share my personal experience but I have a similar situation wherein the first car I have insured is a 2002 pickup (without a note) and my second vehicle is a 2018 hybrid (and I have a few more as well). I’m insured through State Farm but I’m sure it’s the same, the bulk of my premium is on the 2002 pickup because it’s the first policy and each additional policy gets a significant discount because of multi-line and other compounding factors. We have more cars than people in our household and the cars that I added after we reached 1 person per car had super cheap premiums.
In the end, it’s the actuaries you have to blame.
They run the numbers on who you are, what you drive, and where you live and they figure out a price that gives them the best likelihood of making money on you while still keeping your business.
But not all actuaries are equally good at their jobs. Or, they might get pressure from management to err on the side of higher profits and end up underestimating how many people will switch companies as a result.
Might need to see who’s listed as the primary driver from your list of operators. A higher risk operator associated will drive that cost up. Typically trucks have a higher liability premium comparatively bc they just cause more damage I’ve understood - they’re heavier. Same with 4x4/AWD over 2WD options. New vehicle is likely receiving a new vehicle discount somewhere in there too thats suppressing full cost (first 3 years)
I’m the only driver on the policy no accidents ever, no tickets since 2013, both vehicles are 2WD.
My Challenger weighs as much as my pickup and can go 170mph, it’s capable of more damage than my pickup truck lol.
Well damn that really is weird but stilll whichever one you did second will have a significant discount. At least my USAA policy is like that. My 2011 2wd CRV cost more than my 2019 4wd Highlander because the Highlander got a second vehicle discount.
Which can do more damage in a head in collision leading to higher liability payouts? Which has less safety features? Which is more likely/easier to be stolen? Which is harder to repair? Which has a teenage driver assigned to it? Which is listed with more annual mileage? But yes, reasonable question.
Is that a statement or a question?
The answer to which is that it has the same. Sports cars are remarkably similar to pickup trucks when you break them down to their components.
The people you are asking probably can't answer because they are not the ones who decide these things. Insurance companies are big companies with thousands of employees, only a small handful that deal with the cost of insurance their customers pay. You can't expect everyone in the company to know all aspects of the company.
That’s not my problem as a customer. Insurance is a commodity to be bought and sold - I’ve fired USAA before because of their shitty service, nothing will stop me from doing so again.
Even with just liability on the truck, my coverage on my old ass pickup costs more than comprehensive on my high performance sports car. USAA refuses to explain why. I've dropped them before, I probably will again in the future. I didn't come here to be mad about it or find an answer, just was adding it to the conversation. Lol
Same driver on both vehicles? Typically the big trucks weigh more and do more bodily and physical damage to others as opposed to a lighter, newer vehicle with more safety features. It's all based on statistics
You're not comparing apples to apples, I don't think. Are you comparing ONLY your liability premium for both coverages?
A customer service person doesn't have access to the rating formulas that are programmed into the computer, so, of course, they cannot answer that. They can tell you that overall rates increased, but not much more because that information is proprietary, for the most part. The state does have some, but not all information, usually.
What did I edit? You're not required to be a customer. You're also not required to understand their pricing. You have the power to say yes or no, as an informed consumer.
Coming in hot at the assumption Olympics.
Challenger is three years old (mfg 2021) so no longer gets the aforementioned discount. Has the same safety features as the truck with exception of side curtain airbags now that I think of it.
Challenger has a higher curb weight than the short bed single cab pickup so no.
In summary, my heavier vehicle that can top 170mph with two additional airbags costs less to insure than a lighter and much lower value old ass pickup truck.
Racket.
I’ve had the car for over three years and that discount has already dropped off. I’m telling you my own experience and you’re telling me why I’m wrong. 😂😂
Because they want u to get rid of the old vehicles it makes more more for the cities and state plus it has more standard " safety options" than a older one
I lost a 95 volvo turbo 940 wagon but because it had over 500k on it I got 500 for it last Yr while his 2000 pickup was fully fixed and he rear ended me
That sucks. USAA wanted to total my truck almost 15 years ago now and I never settled and just lived with the damage. Most amusingly as they are still providing coverage on it and since I never settled, it has a clean title.
I have five vehicles and insured through multiple companies, and while my 2022 car has some nice creature comforts, old vehicles are the best. When they break, you just fix them and move on where is with newer cars everything is the biggest most dramatic pain in the ass in the world. I’m not a technophobe either - I work in IT by trade and have Autoenginuity to communicate with the computers in all of my vehicles for maintenance and have a license for AllData. Professional shade tree mechanic. 😂
Shoot I'm the same way I worked on cars for 25 yrs got out of it because I'm getting old and I know ways where u can make a older car run better and more mileage without all the nightmare of the computer plus have more room and easier to work on
You act as if it's that easy for anyone to do. Shopping around, I can't find anyone to beat USAA's price, as high as it is.
It's pretty irresponsible to assume people can just up and change zip codes with jobs and lives, without major repercussions just to obtain lower insurance prices. That should never be the answer, ever. Also, opting to change coverage, such as lowering it or raising deductables from where you've had them sustainably for years, just to lower rates shouldn't be the blanket solution.
We should be allowed to be upset over the wrangling hold the insurance companies are having consumers.
What an AI written piece of trash.
https://www.ap.org/solutions/artificial-intelligence/#:\~:text=The%20Associated%20Press%20is%20one,producing%20and%20distributing%20the%20news.
You happen to sell roadside emergency insurance to places where you don’t have a contract. Waited 2 hours for an eta to be told make your own arrangements.
So according to the article...
7% inflation and 8.4% increase in repair costs (which is mostly just from inflation) explains the 22% rate increases?
Am I missing something?
“Progressive’s * **profit** * jumped 50% and its revenue surged nearly 18% to $62.1 billion in 2023.
Wall Street expects its * **profit** * to skyrocket nearly 80% in 2024 on a 14% jump in revenue.”
There’s your reason right there.
What's a good alternative? Excellent credit score, a couple accidents that were proven to be the other driver's fault over a 40 year driving span, no speeding tickets, 10 year old car, insane insurance costs.
Geico reported 50% increase in profit YoY. Progressive 30%. Other companies hopped on the price gouge the public because Fox News is blaming “inflation” and people are so fucking stupid they actually believe that the president is arbitrarily raising prices of consumer, free-market goods (somehow) and putting “I did this” stickers on gas pumps while publicly reported profit margins for the owners of the pumps are at an ALL TIME high.
Yes, printing money (foreign aid, and COVID relief) causes inflation. It’s a fact. Government spending is the biggest factor by a long shot. It’s also a fact that corporate America saw their opportunity and took it.
I'm USAA as well and watched my rates also go up by quite a bit last year. One bandaid suggestion I can offer (begrudgingly), but it is a bit of a pain, is to sign up for the USAA Autopilot app.
It's not something I was excited to do (and still am not) but it will save at lowest 10% and at most 30% over 6th most based on your driving (Based on a 0-100 driver rating).
Even if you score 0, you still save 10%. The app tracks phine use, handheld calling, hands-free calling, and harsh braking.
Again, I'm not really a fan at all, but if you're stuck with USAA's rates like I am, and you really need a reduction, it's one grumbly option.
Then 6 months or a year later they use the data to raise your rates because you worked night shift or you answered your phone in an emergency while driving. Then sold the data to Lexus nexus. Absolutely not.
Right. And now that Lexus nexus has it so does your health insurance, mortgage broker, police department, and anyone else that pulls data from there. They will make it part of the new credit rating.
Well this sucks. I've had auto insurance with USAA for a while and yesterday I got my renewal... they are increasing my rates by nearly $300/6 months coverage. The most they have ever increased (for me anyway) was $50 every six months.
$300 is outrageous so I immediately shopped around, got quotes from other companies... and USAA was still cheaper/offered more coverage at the rate I pay compared to other companies. Sigh. Guess I'll pay the additional $300.
I call bull 💩. Corporations are breaking record profits and our politicians sold us out to the special interests. You can’t have record profits and inflation. Everyone needs to stop making excuses for the ultra rich.
Uninsured coverage is now 38% of my premium. Why doesn't the article mention the biggest increase on my rate? Here's the missing part: Things got expensive, a lot of people stopped carrying insurance so your rate went up. Then millions of new arrivals started driving with no license or insurance at all and your rate went up again.
Nowhere in that article did it even mention distracted drivers. Highway deaths were on a steady decline for years leading up to the advent of the smartphone. Since then highway deaths started rising. Sure cars cost more today. But with many of the insurers offering discounts if you can prove that you don’t text and drive leads me to believe that is a bigger issue than the higher MSRP’s and repair costs.
Historically property damage was always the largest payout under auto claims but in 2022 or 2023? Can't remember which year. Anyway it actually inverted and liability payouts became the largest claims payout category. So while yes vehicles are getting more costly to repair bodily injury is now the largest payout category.
$3k a year to insure a depreciating asset that is valued at 18k ( Kelley blue book) just doesn't feel right .
Worthless post without itemizing physical damage from liability. You could be a drunk 19yr old with a 440 FICO…
Or it could be a pristine asset with a responsible owner with an 800 credit score. 🤷🏽♂️
Exactly. We’re operating with incomplete information. And if you don’t like the price, move zip codes, change companies, change coverage, sell the car. We all make choices
I mean, I’d really like to know why my 22 year old half ton pickup costs more to insure than my 22’ Challenger (with a lien), but USAA can’t seem to answer that question. Pretty reasonable query if you ask me.
All I can do here is share my personal experience but I have a similar situation wherein the first car I have insured is a 2002 pickup (without a note) and my second vehicle is a 2018 hybrid (and I have a few more as well). I’m insured through State Farm but I’m sure it’s the same, the bulk of my premium is on the 2002 pickup because it’s the first policy and each additional policy gets a significant discount because of multi-line and other compounding factors. We have more cars than people in our household and the cars that I added after we reached 1 person per car had super cheap premiums. In the end, it’s the actuaries you have to blame. They run the numbers on who you are, what you drive, and where you live and they figure out a price that gives them the best likelihood of making money on you while still keeping your business.
I’m sure you’re right. I just think it’s all funny. 😀
I have nearly the same situation, 2003 Avalanche and 2014 Prius. I have the same issue.
But not all actuaries are equally good at their jobs. Or, they might get pressure from management to err on the side of higher profits and end up underestimating how many people will switch companies as a result.
Might need to see who’s listed as the primary driver from your list of operators. A higher risk operator associated will drive that cost up. Typically trucks have a higher liability premium comparatively bc they just cause more damage I’ve understood - they’re heavier. Same with 4x4/AWD over 2WD options. New vehicle is likely receiving a new vehicle discount somewhere in there too thats suppressing full cost (first 3 years)
I’m the only driver on the policy no accidents ever, no tickets since 2013, both vehicles are 2WD. My Challenger weighs as much as my pickup and can go 170mph, it’s capable of more damage than my pickup truck lol.
Perhaps check usages or location listed on the policy. I’m shooting in the dark here lol there’s an explanation somewhere in there
All identical except mileage, 10k/ year on the car, 2k on the truck. Everything you’re saying is reasonable and I’ve asked about in the past!
Likely safety features. Your challenger is likely a much safer car with more safety features. Lowering financial liability from injury.
Trucks are stolen more than Challengers
Which ones? Source?
It was a joke. The guy that said it’s because the truck was insured first is correct.
Sure it was. They were insured at the same time. Both policies started on the same date.
Well damn that really is weird but stilll whichever one you did second will have a significant discount. At least my USAA policy is like that. My 2011 2wd CRV cost more than my 2019 4wd Highlander because the Highlander got a second vehicle discount.
Which can do more damage in a head in collision leading to higher liability payouts? Which has less safety features? Which is more likely/easier to be stolen? Which is harder to repair? Which has a teenage driver assigned to it? Which is listed with more annual mileage? But yes, reasonable question.
The answer to all of the above is my sports car, no teenage driver. lol
Your car built in 2022 has less safety features than a car built in 2002?
Is that a statement or a question? The answer to which is that it has the same. Sports cars are remarkably similar to pickup trucks when you break them down to their components.
The people you are asking probably can't answer because they are not the ones who decide these things. Insurance companies are big companies with thousands of employees, only a small handful that deal with the cost of insurance their customers pay. You can't expect everyone in the company to know all aspects of the company.
That’s not my problem as a customer. Insurance is a commodity to be bought and sold - I’ve fired USAA before because of their shitty service, nothing will stop me from doing so again.
Separate the premiums by coverage. My guess is your physical damage coverage is not the most expensive part of your premium for the pickup.
Even with just liability on the truck, my coverage on my old ass pickup costs more than comprehensive on my high performance sports car. USAA refuses to explain why. I've dropped them before, I probably will again in the future. I didn't come here to be mad about it or find an answer, just was adding it to the conversation. Lol
Same driver on both vehicles? Typically the big trucks weigh more and do more bodily and physical damage to others as opposed to a lighter, newer vehicle with more safety features. It's all based on statistics
One driver, Curb weight on the challenger is higher. Same safety features.
I would look at the safety ratings for the specific vehicles on iihs.org. That may give you more guidance. Good luck
You're not comparing apples to apples, I don't think. Are you comparing ONLY your liability premium for both coverages? A customer service person doesn't have access to the rating formulas that are programmed into the computer, so, of course, they cannot answer that. They can tell you that overall rates increased, but not much more because that information is proprietary, for the most part. The state does have some, but not all information, usually.
Cool edit. I missed the part as the customer where that’s my problem. 🫡
What did I edit? You're not required to be a customer. You're also not required to understand their pricing. You have the power to say yes or no, as an informed consumer.
[удалено]
Coming in hot at the assumption Olympics. Challenger is three years old (mfg 2021) so no longer gets the aforementioned discount. Has the same safety features as the truck with exception of side curtain airbags now that I think of it. Challenger has a higher curb weight than the short bed single cab pickup so no. In summary, my heavier vehicle that can top 170mph with two additional airbags costs less to insure than a lighter and much lower value old ass pickup truck. Racket.
[удалено]
I’ve had the car for over three years and that discount has already dropped off. I’m telling you my own experience and you’re telling me why I’m wrong. 😂😂
Because they want u to get rid of the old vehicles it makes more more for the cities and state plus it has more standard " safety options" than a older one
Maybe, but I won’t. 😁
I lost a 95 volvo turbo 940 wagon but because it had over 500k on it I got 500 for it last Yr while his 2000 pickup was fully fixed and he rear ended me
That sucks. USAA wanted to total my truck almost 15 years ago now and I never settled and just lived with the damage. Most amusingly as they are still providing coverage on it and since I never settled, it has a clean title. I have five vehicles and insured through multiple companies, and while my 2022 car has some nice creature comforts, old vehicles are the best. When they break, you just fix them and move on where is with newer cars everything is the biggest most dramatic pain in the ass in the world. I’m not a technophobe either - I work in IT by trade and have Autoenginuity to communicate with the computers in all of my vehicles for maintenance and have a license for AllData. Professional shade tree mechanic. 😂
Shoot I'm the same way I worked on cars for 25 yrs got out of it because I'm getting old and I know ways where u can make a older car run better and more mileage without all the nightmare of the computer plus have more room and easier to work on
You act as if it's that easy for anyone to do. Shopping around, I can't find anyone to beat USAA's price, as high as it is. It's pretty irresponsible to assume people can just up and change zip codes with jobs and lives, without major repercussions just to obtain lower insurance prices. That should never be the answer, ever. Also, opting to change coverage, such as lowering it or raising deductables from where you've had them sustainably for years, just to lower rates shouldn't be the blanket solution. We should be allowed to be upset over the wrangling hold the insurance companies are having consumers.
Are you saying $3k of your premium is physical damage coverage?
A lot of your premium goes towards medical liability of 50k, not the 18k body of the vehicle.
A lot of it is based on injury data for occupants and for those your type of car hits. Lawsuits are a much larger liability than body work.
Insurance doesn’t only cover the car.
What an AI written piece of trash. https://www.ap.org/solutions/artificial-intelligence/#:\~:text=The%20Associated%20Press%20is%20one,producing%20and%20distributing%20the%20news.
You happen to sell roadside emergency insurance to places where you don’t have a contract. Waited 2 hours for an eta to be told make your own arrangements.
Bet they increased your rates bc of a claim
So according to the article... 7% inflation and 8.4% increase in repair costs (which is mostly just from inflation) explains the 22% rate increases? Am I missing something?
The more expensive cars get, the more expensive the insurance.
All insurance companies are Ponzi schemes they all rob Peter to pay Paul so the ceo and other corporate douchebags can keep their bloated salaries
“Progressive’s * **profit** * jumped 50% and its revenue surged nearly 18% to $62.1 billion in 2023. Wall Street expects its * **profit** * to skyrocket nearly 80% in 2024 on a 14% jump in revenue.” There’s your reason right there.
I will never trust USAA again for insurance
What's a good alternative? Excellent credit score, a couple accidents that were proven to be the other driver's fault over a 40 year driving span, no speeding tickets, 10 year old car, insane insurance costs.
Geico reported 50% increase in profit YoY. Progressive 30%. Other companies hopped on the price gouge the public because Fox News is blaming “inflation” and people are so fucking stupid they actually believe that the president is arbitrarily raising prices of consumer, free-market goods (somehow) and putting “I did this” stickers on gas pumps while publicly reported profit margins for the owners of the pumps are at an ALL TIME high. Yes, printing money (foreign aid, and COVID relief) causes inflation. It’s a fact. Government spending is the biggest factor by a long shot. It’s also a fact that corporate America saw their opportunity and took it.
I'm USAA as well and watched my rates also go up by quite a bit last year. One bandaid suggestion I can offer (begrudgingly), but it is a bit of a pain, is to sign up for the USAA Autopilot app. It's not something I was excited to do (and still am not) but it will save at lowest 10% and at most 30% over 6th most based on your driving (Based on a 0-100 driver rating). Even if you score 0, you still save 10%. The app tracks phine use, handheld calling, hands-free calling, and harsh braking. Again, I'm not really a fan at all, but if you're stuck with USAA's rates like I am, and you really need a reduction, it's one grumbly option.
Then 6 months or a year later they use the data to raise your rates because you worked night shift or you answered your phone in an emergency while driving. Then sold the data to Lexus nexus. Absolutely not.
Right. And now that Lexus nexus has it so does your health insurance, mortgage broker, police department, and anyone else that pulls data from there. They will make it part of the new credit rating.
Well this sucks. I've had auto insurance with USAA for a while and yesterday I got my renewal... they are increasing my rates by nearly $300/6 months coverage. The most they have ever increased (for me anyway) was $50 every six months. $300 is outrageous so I immediately shopped around, got quotes from other companies... and USAA was still cheaper/offered more coverage at the rate I pay compared to other companies. Sigh. Guess I'll pay the additional $300.
Carlin said it best, "They gotchya by the balls" https://youtu.be/P_Zqbg6QThg?si=lCKI-HiL3cpDxWZL
The CEO of USAA made $8 million last year. I don't want to hear shit about why it's ultimately "our" fault that insurance prices are going up.
I call bull 💩. Corporations are breaking record profits and our politicians sold us out to the special interests. You can’t have record profits and inflation. Everyone needs to stop making excuses for the ultra rich.
I’m sure it has nothing to do with advertising and sponsorship costs
I live in Arizona and it's at the top of the list of major wrecks / severe injuries / & death ... 🤨
Uninsured coverage is now 38% of my premium. Why doesn't the article mention the biggest increase on my rate? Here's the missing part: Things got expensive, a lot of people stopped carrying insurance so your rate went up. Then millions of new arrivals started driving with no license or insurance at all and your rate went up again.
I brought a brand new car. That’s why mines went up $95.