Auto Insurance Went Up Because....??

des-1314

New Member
3
Hey guys,

My insurance premium just got renewed and it went up about $250, I called them and they told me that because they just got notified that my car model is now cost to more to repair if I get into an accident... Does this sound right? I don't have any accident or tickets. Can I fight it to have them bring down the premium to what it used to be?

Thanks.
 
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Rates can go up, but there really isn't any fighting it with the carrier. You can always shop the policy though.
 
The rate of repairs, especially on a newer model can change hugely and will make a difference. By any chance is this car a nissan?
 
Rates can go up, but there really isn't any fighting it with the carrier. You can always shop the policy though.

The rate of repairs, especially on a newer model can change hugely and will make a difference. By any chance is this car a nissan?

Thanks guys. It's a 2015 BMW. I am just very surprised that the repair rate can go up almost 30% for my premium after almost 2 years. Really?
 
Rates are determined by the carrier and then have to be applied based on a rating formula. In the insurance world, there really isn't any negotiating rates with the same carrier.

And yes, it is likely the carrier has had to do some significant repairs on that particular model car and they realized their initial repair cost estimates were off. They simply adjusted it for reality. You got a discount till now.

As Josh said, the best thing to do is to comparison shop a bit. You'll be amazed at the rates another carrier may offer. Be careful though, if you have a homeowners policy and move just the autos, you can lose the auto/home discount which can be significant. Make sure you understand the discounts when you shop.

Dan
 
Rates are determined by the carrier and then have to be applied based on a rating formula. In the insurance world, there really isn't any negotiating rates with the same carrier.

And yes, it is likely the carrier has had to do some significant repairs on that particular model car and they realized their initial repair cost estimates were off. They simply adjusted it for reality. You got a discount till now.

As Josh said, the best thing to do is to comparison shop a bit. You'll be amazed at the rates another carrier may offer. Be careful though, if you have a homeowners policy and move just the autos, you can lose the auto/home discount which can be significant. Make sure you understand the discounts when you shop.

Dan

Okay! Thanks guys!
 
Thanks guys. It's a 2015 BMW. I am just very surprised that the repair rate can go up almost 30% for my premium after almost 2 years. Really?

Luxury cars are the most expensive vehicle types to insure, followed by "green” cars (hybrids, electric, etc.), trucks, sedans, SUVs, and vans.

Below are the most expensive vehicles to insure in 2016, along with their average annual premium.

Mercedes-Benz E-Class — $2,173
Mercedes-Benz C-Class — $1,934
BMW X5 — $1,830
BMW 3-Series — $1,762
Audi Q5 — $1,712
(Source: The State of Auto Insurance 2016)

Rates vary by insurance carrier though, so it's worth it to shop around.
 
OEM Parts prices do change over time. Especially on the luxury brands like BMW, Audi, Mercedes, etc. Heck, a single headlamp on my 5 year old Mazda costs over $1000.

Shop around is all you can do.
 
Mine went up when I was in California for about that amount last year for no reason. You can call them and ask for their retentions department. Sometimes they can work with you if you tell them that you will leave them and find somebody else.
 
Mine went up when I was in California for about that amount last year for no reason. You can call them and ask for their retentions department. Sometimes they can work with you if you tell them that you will leave them and find somebody else.

With all respect this isn't like calling DirectTV or Verizon. Rates are set by the CA Dept. of Insurance.

Your agent (or customer service rep if you go the 1-800 route) will review the policy to see if they are missing any discounts, if they have rated operators or vehicles incorrectly and/or may offer you different coverage options ;like increasing your deductible.
 
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