My auto insurance premium seems to keep increasing. I drive a 2001 Nissan Altima and I’m paying over 0 a month. I have no accidents or speeding tickets on my record. My friend has a 2007 Pontiac G5 and he is paying 0. We use the same insurance company. This makes no sense to me. What seems to be happening?
I might also add that I live in Massachusetts and because we like to set ourselves apart from the rest of the nation, the state, rather than the insurance companies regulate the rates.
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Why does my auto insurance keep going up?
mexpimp619 8:46 pm on November 7, 2009 Permalink
To be honest with you, it’s because they can. All the major insurance companies hold conferences to raise their prices. They take turns offering lower rates, while the rest of the companies go on charging more and more. And when a lot of people decide to switch to another company, they do it all over again. To make sure no companies cheat or opt out, they all put enormous quantities of money into a safe, and if someone doen’t play by the rules, they lose their money.
JetDoc 8:46 pm on November 7, 2009 Permalink
$250 a month does seem to be a bit excessive, but individual insurance policies can vary because of the age of the driver, or the amount and types of coverage you have. If you are a student, even your grades in school can have an effect on your insurance rates.
Talk to your insurance agent to see if there is anywhere you can make changes to your policy to reduce the cost. If you don’t get the answers you need, then maybe it’s time to go shopping for a new insurance company.
Don B 8:46 pm on November 7, 2009 Permalink
I suppose you know why so many people drive without insurance (save a big bundle of money). But several years ago, the insurance industry lost a lot of money in the stock market and had to raise rates. With more states toughening up the mandatory auto insurance laws, and more accidents covered, that means more lawyers get put to work in lawsuits. And some states are regulating the insurance business and the insurance companies have to raise the rates somewhere else to make up for their low profits in highly regulated states. Your rates would plummet if you would drive a 1,000$ clunker. You buy a new car and your rates skyrocket.
gomanyes562 8:46 pm on November 7, 2009 Permalink
A lot of times, you can get a better rate just by asking. Call your agent and tell him that your friend is paying less than you for a similar car and a similar record, and see what happens. If you don’t get anywhere, switch to another company.
Sue 8:46 pm on November 7, 2009 Permalink
As of this year, I heard that competition is coming to MA, so you may be able to shop around. Anyway, you have a policy in force so the price is the price no matter what company you have. You may have higher limits of liability than your friend. He may have chosen the state minimum liability limits. Also, you may have a ticket or accident on your record. He may have gone longer than you without a ticket or accident (in MA, there are "steps" – every year you go without a ticket or accident, the steps decrease & decrease your rate). You may live in a city & he may live in a suburb or rural area which also affects rates. He may also be a little older than you.
There are many factors that determine rates, more than you mentioned in your question so these are only guesses at the reason. Monthly premiums do not necessarily determine what the rate is. Some companies offer discounts if you chose EFT billing. You need to look at the annual premiums.
stefgerwitz 8:46 pm on November 7, 2009 Permalink
There could be a difference between the two types of coverage you and your friend selected. There are plenty of insurance companies so shop around and you might find a better price elsewhere.
emotal1 8:46 pm on November 7, 2009 Permalink
I think you are with the wrong company. I was with Progressive Insurance and the first year our insurance went down, then "progressively" started to creep up everytime renewal time came up. Now I am with Geico Insurance and it’s awesome. For every year without any tickets or accidents our insurance goes down. We have a 2002 Dodge Ram extended cab pickup and our insurance is down to $80 per month and that’s for full coverage, with a $500 deductable. I love it. Check it out on line. I believe you can get free quotes on line.