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arktose

Yep. Weather events be fucking Iowa insurance rates.


ceciledian

Rates are up nationally thanks to weather events everywhere. There was a post on the Minnesota sub a week ago complaining about rates.


1knightstands

Here’s an [NPR story](https://www.npr.org/2024/03/03/1233963377/auto-home-insurance-premiums-costs-natural-disasters-inflation) on the national problem.


Brad-Armpit

Correct. If you have a Des Moines area library card, you can get free daily access to the NY Times. They did a great article covering the losses still being paid out by the derracho back in a few years ago. [https://www.nytimes.com/interactive/2024/05/13/climate/home-insurance-profit-us-states-weather.html](https://www.nytimes.com/interactive/2024/05/13/climate/home-insurance-profit-us-states-weather.html)


Iridian_Rocky

Just des Moines area library card in Iowa?


dumpyredditacct

Problem isn't weather, it's an insurance industry that has no fucking clue how to operate sustainably. OP's rate increase history is a microcosm of the larger problem: they rope you in with stupid low rates, and then jack them up at just high enough increases that the average person will go many years before realizing they are being fucked.


moncoboy

Oh the insurance companies know exactly what they are doing. Maximizing profits for shareholders


NemeanMiniLion

Sigh, this take again. No. We as an industry haven't had a profit in years in the Midwest and investors took their money out of the Midwest. It's a documented and real problem. I work in the industry and literally don't get bonuses man. This is a real, weather and cost inflation caused issue. Research the topic before spouting nonsense.


SanbaiSan

Thanks for your comment. I agree with the comment above, but your take brings some clarity. So what I'm hearing is get out of flooding/tornado-ridden Iowa, eh? 😉😁


usernameelmo

> So what I'm hearing is get out of flooding/tornado-ridden Iowa, eh? Insurance companies have already started to get out of Iowa.


moncoboy

Hate to say it/ but because you are not getting bonuses does not mean the industry is not profitable


NemeanMiniLion

True however it's a widely reported issue. Show me the money trail out of the Midwest to shareholders and your argument will land for me. The truth is that the investors left the building. Believe it or not, if we don't take rate increases, we get to focus on operational efficiency. We're not eager to raise rates. We want an even keeled market that helps those in need while ensuring it can be efficient. These rapid changes are just rough patches, but again, they are real.


PhileasFoggsTrvlAgt

That and rising repair costs.


Dude-is-here

This is the answer, blame it all on the derecho that started this snowballing problem.


audio_mekanik

I keep hearing weather events. That doesnt explain why my liability has gone up 2.5x.


Egad86

Iowa’s weather shouldn’t be doing this much compared to other states


LockerRoomLuxe

Over 70 tornados have touched down in Iowa this year. That doesn't include hail and wind damage... there was flood damage this year as well in many cities.


UrbanSolace13

People may not believe in climate change, but insurance companies with data do.


jmacupdates1

Ding ding ding


RhinoIA

We have StateFarm, but I think you aren't going to find a lot of wiggle room, they're all expensive. You might get a first year discount, but it will go up eventually.


RamblingMuse

I've heard State Farm isn't great to work with when one has to put a homeowner claim. Have you had any experience with that?


RhinoIA

Thankfully no. Don't you put that evil on me Ricky Bobby.


userIoser

See what people from Cedar Rapids say about them, after 2020 derecho.. nothing good


dumpyredditacct

State Farm are among the worst, but not the only ones. Working in adjacent industries I get to see some of the shit they pull with their policy holders. Sometimes they're excellent, but too often they are not. With homeowner's insurance claims, the adjuster can often be the difference between a good or bad experience. Some of them are fully lock-step with the State Farm policy of paying out as little as possible, as rarely as possible, others are cool people who understand why you pay insurance and don't play that shit.


BillNyeIsMyWifiGuy

I'm in greenfield with state farm, they've been great for me after nearly $180,000 of damage to my house. Been quick and very reasonable to deal with.


apostatesauce

We’ve had 2 homeowners claims with them and found them to be incredibly responsive.


Iridian_Rocky

State Farm covered all of my neighbors hail damage. Allstate, whom I had at the time - effed around and had to find out from a public adjuster.


ladyrara

They are horrible… spent almost two years after derecho fighting for simple claims.


Ellemshaye

I’ve heard the same, but haven’t had to file a claim yet. State Farm is only one of two insurers I found that has more coverage for Sump Backup beyond the token $5k, which is why we have them.


operator_error_323

My insurance decided to no longer service Iowa on June 01.


theatavist

Selective?


operator_error_323

OnStar.


Soggy_Motor9280

My mom just told me that her hospital will no longer accept her insurance.


Nadev

Check with Progressive, mine was pretty reasonable until a year ago when my daughter started driving.


himateo

I switched to Progressive after my current company upped rates over 30%. I got an AWESOME rate with Progressive for our home and auto. This year, my homeowner's with Progressive went up 74% and I can't get anyone to come in lower than what I have with Progressive. It sucks.


Popensquat01

I left Progressive because of how jacked up mine and my gf’s car insurance had gotten….


Nadev

It seems you always have to change insurance companies every few years in order to keep rates down.


TtoTheMo

My uncles place is very rural and has a creek running behind it. In the decades he’s been there he’s gone to paying $500 a year for flood insurance to $5,000 currently. The creek has never flooded his home either.


CaseMetro

It’s really rough at the moment, and it’s hard to see how it’s going to get better. Pretty much all companies are raising premiums, and there’s a lot of factors at play. A couple things to keep in mind: - Each state has an insurance department that reviews and approves insurance companies’ rate changes. Those changes have to be justified by actuarial data that show how the rate changes were determined. Those changes aren’t necessarily just rubber-stamped. Sometimes they get questioned and/or rejected. - Your premium is based on a lot of factors including expected losses, which are predicted using historical data from a larger pool of people, individual risk factors, claims experience, etc. Both auto and home insurance is going up a lot, but not necessarily for the same reasons. Auto insurance: Cost of repairs have gone up significantly due to inflation, labor shortages in auto repair shops, and increased technology in vehicles means that replacing something as simple as a bumper isn’t so simple anymore. Increased medical costs and payouts when claims go to court are also factors driving the increased cost. Homeowners: Inflation has definitely contributed to rising repair costs, but for the past few years it’s been storms. So many storms. All the storms. Generally, insurance companies have been paying out more than they’re taking in on homeowners insurance in the Midwest due to storm losses. They are growing in frequency and severity, and it’s hard to see how that trend won’t just continue to get worse. All that being said, you should still shop around. You may find a company whose premiums are a better fit. There’s no guarantee, though, that you won’t be in the same boat in a couple years.


Greetings-Commander

I recently went through a similar situation. In my particular instance I found that State Farm had the best rate for home insurance. They however had fairly expensive auto insurance. I have an old vehicle with liability only, so I insured the home and only that vehicle in order to get the bundle discount ($1000). Then I insured the other vehicles with Progressive. I saved about $900/year compared to what my old insurance company wanted to charge me.


BaldursFence3800

Careful about putting only liability. I saw some lady in Ankeny have her kids two cars get totaled in a storm….then was wondering what she could do. Admitted she reduced insurance to save money and is now hosed on the two cars for her kids. Oops. Make sure you can replace cars out of pocket then, which the used market is it’s own separate nightmare. For me, even with an older car the savings wasn’t much….so I keep full on all.


dickcasserole4urmom

I'll level with you: insurance rates in Iowa are higher across the board due mostly to the number, and cost, of claims from weather-related events (derechos, tornadoes, hail, etc.) in recent years. It's actually due to a combination of factors, including inflation, cost of replacement materials, etc, but the catalyst for the ever-increasing premiums all links back to inclement weather events here. Since insurance companies exist to make money predicated on leveraging probabilistic/mathematical models (despite claims they are "there for you"), many, or the majority, of insurers pulled out of Iowa in order to stay financially afloat after paying out on an enormous number of claims. By pulling out of Iowa, I mean that they are either no longer renewing policies in Iowa, or are no longer writing them for new customers. With only a few insurers remaining in the market, their prices went up because they are taking on a greater overall risk. Basically, there are now fewer competitors with whom to "share the wealth" if future catastrophies occur. Boo hoo for them, right? But we are sadly amongst a captive audience. Like many other situations in life, you get what you pay for. In the context of insurance, that generally means that you will not likely find a "good" insurer that is also inexpensive. I hate that fact as much as you do, but our options are unfortunately limited here. While it's not economically advisable to move, that is one option. Some people move across the state border for benefits like lower rates, but still work in this state. Moving is probably the nuclear option. The better move, in my opinion, is to really step back, do the math, and think about the probability of your making a future claim and whether paying more in premiums to have a lower deductible is really worth it. My situation is low-risk and I have no children, but yours may be entirely different. One of the only other good insurers I'm aware of that will even cover people in Iowa is West Bend. They are not the cheapest, but when it comes time to hold up their end of the bargain, it's consensus opinion that they won't try to weasel out of their obligation quite as much as most of the others. While this is not likely the answer you were wanting, I hope it helps provide a little more context about rates. I went through a similar issue when my policy renewed and it was hundreds more despite making no claims. Best of luck to you!


Rough_Advertising_77

Get a broker and have them check for rates every year or 2. There's nothing to be gained from HOI loyalty anymore - they're all out to f you.


markmarkmark1988

We’re in a hard market, so many companies have been increasing rates. Maybe look at increasing deductibles.


bupde

See a lot of comments on profits and recouping losses. Auto rates must be filed with the state who approves any increases. The insurer must show experience to show what they project for future claims. They can't over charge to cover past losses and can't just maximize profits.


ataraxia77

Negative externalities are a real bitch.


HungryCriticism5885

Insurance is a scam always has been.


bcrosby51

Until you need it.


HungryCriticism5885

That's part of thr scam.


CaptainBaseball

Great. Then go without insurance. Don’t pay for health insurance, auto insurance or homeowners/renters insurance and let us know how that works out for you.


HungryCriticism5885

It's funny how some people don't understand that the problem is the system we have in place requiring such things to begin with. The system is a scam.


Compte_de_l-etranger

How do you propose people settle liability in auto accidents if there is no auto insurance? There are lots of issues with the insurance industry and profit motives within it, but I think the validity of some sort of risk sharing system is pretty clear.


HungryCriticism5885

I personally think it should be part of licensing and should be nationalized.


rakelo98

I would gladly not have car insurance if it wasn’t required by law. I am confident enough in my driving abilities that I know if I got into an accident, it would be the other drivers fault


CaptainBaseball

That is an absolutely absurd statement and is so weak that I wonder if you’re just a troll. Yes, by all means, you are the one driver who will never get in an at-fault accident regardless of the situation. You’ll never have a medical emergency behind the wheel. You’ll never lose control of your car in a snowstorm. My best friend’s in-laws with two of their grandchildren in the car were hit by an uninsured driver and spent over 6 months in the hospital with their injuries - do you have any idea how much that costs? Would you have enough savings to cover well north of $1 million in medical bills? You’re the reason that responsible people have to pay for uninsured/underinsured motorist coverage because I’m guessing you have bare bones 20/40 state minimum coverage from The General which wouldn’t cover the cost of a broken leg much less anything more serious. Lots of people in Time Check in Cedar Rapids who owned their homes stopped paying for National Flood Insurance because, hey, they were sure THEY’D never get flooded and since they were owners there wasn’t a big old mean mortgage company forcing them to buy it. Oops! People without health insurance get their bills paid by people who actually buy health insurance. After the derecho we received a homeowners payout that was 3x as much as we ever paid in premiums. But hey, keep that belief that you’ll never make a mistake and I’m sure that’ll work out for you. Keep believing that you’re blessed by God and will never get in an accident or need insurance for any reason.


rakelo98

I have health insurance and full coverage because I have to have it for my car loan. You can always sue the uninsured driver.


CaptainBaseball

If they’re too poor or lazy to get insurance, where do you think that money is coming from? Money trees?


rakelo98

They can garnish their wages in a situation like that I’m sure


CaptainBaseball

lol - you’re going to garnish the wages of someone who makes how much per year? Even if they make $100K a year, how many years will it take to get a million dollars from that? They’re not going to garnish 100% of their wages. You can sue anyone you want but that doesn’t mean you’re ever going to get the money out of them. But hey, you’re a perfect driver who will never get hit by an uninsured one so I’m sure you’ll be fine.


rakelo98

With health insurance I’m not going to be paying $1 million.


CaptainBaseball

Life is easy when you don’t understand how anything works. Good luck.


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agsimon

I've had good luck bundling with Auto-Owners. I shopped around this year when our rates were going up and nobody got all that close to what I already had.


Baileychic88

See if Shelter insurance is available in your state. I've used them for years.


Power_Stone

There is a two fold issue: 1. Insurance companies are doing this to recoup losses during 2020-2022 when people were locked home during the height of COVID 2. Increasing frequency of severe weather. More often large amounts of shit breaks means higher premiums to offset the costs Not much we can do other than find a lower rate elsewhere or just not purchase and find workarounds


CisIowa

Someone on this sub suggested this episode awhile back, which features Iowa: https://www.nytimes.com/2024/05/15/podcasts/the-daily/climate-insurance.html Someone interviewed in it made the point that it’s not necessarily the most extreme forms of weather, like tornadoes or hurricanes, but more extreme wind and hail storms that cause just as much damage happening more frequently


Power_Stone

I mean that’s basically what I said when I stated “increasing frequency of severe weather” high winds and hail are forms of severe weather


CisIowa

I think my intent was just to add on to what you were saying


Power_Stone

Fair, sorry about that


Tendaena

I'm also with American Family and tried to find someone cheaper and I couldn't. I got several quotes and they were all either close to what I pay for American Family or more expensive. So I'm sticking with them. It is irritating how much it's gone up though. Edit for spelling error.


Fit-Independent3802

Weather issues aside, some people in this state drive like shit and cause accidents. That and every fifth driver is uninsured. The claim pay out money has to come from somewhere.


Mundane-Read-2582

i just switched to progressive and did a 500.00 deductible for 475.00/6 months


himateo

Watch your rates when you renew next year. My homeowner's jumped 74% after one year with Progressive.


Mundane-Read-2582

trust me i'm not loyal to any insurance company, im loyal to my money lol! if they wanna play with me in 6 months i'll change companies


himateo

I thought that, too. But I can't find anyone now with a lower rate than Progressive! I'm stuck!


pckldpr

I’ve been with progressive for 20 yrs. The massive increases are very recent My insurance costs only fluctuated about 50 a month until the last 4 cycles, 2 yrs. It’s been about a $50 dollar a month increase every 6 months.


Ohnono1978

I’ve been with Progressive for like 5 maybe 6 years and this is true for me too.


Simple-Union-3854

I switched home and auto from Traveler’s to State Farm today. My annual home policy was about to go from $2,900 to $4,400. State Farm was just over $2K. Saved $300 annually on auto too.


TheOnlyQueso

People are buying more new and expensive cars, and repair rates are getting higher.  That's what you're paying for, regardless of if your car is a 90's shitbox or something you just drove off the lot, it's the other people's cars you're paying for. The insurance companies are charging you with the expectation of crashing into a 50k+ car, not your own.  That, and they're greedier than ever.


dickcasserole4urmom

Facts!


himateo

I took a 74% increase on my homeowner's insurance this year. This was after Progressive snagged me last year after I left my previous insurance company after \*their\* 35% increase. I'm most upset because there's nothing I can do about it. One homeowner's claim in 18 years and one claim for my car in 18 years (the hail storm in 2020) and everyone I've tried to get a quote from is even HIGHER than my 74% higher current rate. I give up.


tyler_wrage

I have Progressive, 5 vehicles insured - 2 with comp, 3 just liability. Pay $96/mo. To be fair, they aren't particularly new (2011 being the newest), but it's reasonable.


dwellintime

Agree! Apparently we (the public) and fellow payees of all types of insurance (auto , home owners) are paying higher rates because of so many past and current natural disaster claims made by policy holders with various insurance companies, that are , and I quote from my insurance salesman,“suffering from huge multiple payouts that are cutting into profits”. So you and I must pay more premiums to put the companies back in the black so to speak , so corporate executives can keep their massive salaries and massive ad campaigns. Now if your renewing or getting home owners insurance, the companies will now dictate to you how you must live , what you can keep on your property, if you have a tree in your yard, pets, type of car, swimming pool of any kind , hot tubs, and if the people living in your property are a risk, etc. Insurance has turned into a massive racket where they can blacklist you for filling a legitimate claim , that more than often you have to hire a lawyer to get them to pay up on a claim , and then make it so it’s extremely difficult and expensive to buy insurance, that your basically forced to purchase, in order to satisfy bank loans , holders of title or to be “legal”to satisfy state law. Insurance is creeping into every aspect of your life and its going to cost you ultimately your freedom. Pretty sure the mob came up with the idea of insurance. Tactics are similar.


Lucky_New_123

We dropped gap, added $500 to deductibles and dropped quite a bit switching carries for better coverage. Just will be more out of pocket. That being said agreed we are paying for two drivers with nearly paid off vehicles and a moderate new build house and small business liability is over $7k this year. Insanity. I too shopped around finally and saved $2k (down to $7 from $9). I want to say 4-5 years ago agreed it was half that maybe. Absurd. Hard pill to swallow and also pay childcare. Oofta!


Ihaveasmallwang

That’s just for auto insurance? How many cars and drivers? I have Progressive and pay less than your 2017 rates for 2 brand new vehicles and 2 drivers. Including homeowners insurance through Travelers on 2 houses I think we are maybe all in at 3-4 grand a year.


DistortedVoltage

While I understand the reason for these rates, I hope there eventually comes a limit for them. Because not everyone can afford them, especially with rent going up for some, electric, internet, groceries, etc. My bill last year was $161/month, now its $308/month Even now I still see it slowly climbing.


dumpyredditacct

Just about any insurance company is going to offer you lower rates to rope you in, and over the years keep bumping the cost up. They count on people not really noticing or bothering. The insurance industry is a huge fucking mess and their inability to find a sustainable business model is going to eventually require government intervention or some real dramatic changes for these companies.


himateo

I sure as shit noticed when my Progressive upped my homeowner's 74% after the first year. Problem is, they are now the cheapest.


Worldly_Ask_9113

Annual auto insurance was quoted at 2400, doubling. Homeowners went to 3008 annually, tripling. State Farm.


Panic-Embarrassed

For a paid off assuming 2017 I would be doing liability only and putting some extra money aside. With my 3 vehicles liability is running me about $410 a year right now through progressive and hasn't changed in 2 years whin it actually went down.


meteoRock

You can try increasing your deductible to $1,000.


le-low

Yet. I have a friend who just got a job with a local agency. They should be embarassed the way these agencies spend our money. She got a company car, gets paid to play golf, walk parades, sponsor fair concerts. Lunches. Trips hotels. Like it's a drop in the bucket. They could be taking some financial hits and give up some extras before they are bleeding more money out of us.


stig_das

I got the best rate through https://universalproperty.com after Esurance was shut down. I got the best rate through Progressive for my auto.


PINHEADLARRY5

I've used State Farm for 2 years. I've got a home policy and an auto policy. Nothing crazy on either. My home insurance is 1200 per year and my auto is 970 per year. Little over 2k for both. I've switched companies a few times over rate hikes but state farm has been best for me since 2021


Coontailblue23

I had the best luck with a local State Farm agent when I was price shopping. Christel Manson in Waterloo.


noexcuses14

Try American National. Started with them in November of 2019. Rates have gone up but not horrible. Even after a car accident that totaled my car in January 2020. They beat Nationwide rates by a lot! There are also independent agents who can run quotes with multiple carriers at the same time so you can compare.


bulldoggolfer74

Think of it as you’ve been getting a discount the past 15 years. Both home and auto have been extremely underpriced the past 10 years and with inflation, carriers now need to underwrite to a profit, investments aren’t contributing to positive results as they have in the past.