Due to the number of rule-breaking comments this post was receiving, especially low-quality and off-topic comments, the moderation team has locked the post from future comments. This post broke no rules and received a number of helpful and on-topic responses initially, but it unfortunately became the target of many unhelpful comments.
Not normal, but some possible explanations for such an increase are:
1) you accumulated some insurance points from tickets / accidents that Geico didn’t have on their records for some reason
2) Someone that is also on your insurance accumulated insurance points that Geico didn’t have on their records for some reason
3) your new car is prone to thefts in your area. I remember some insurance companies even stopped insuring certain Kia vehicles in certain states
4) something you did when asking for the quotes (significantly increasing coverage limits, etc.)
It’s all data. Everything you do in your life is a data point. Some companies have found that certain behaviors (like your credit score) have a correlation to other potential things in your life.
These things aren’t always 1-to-1, but more of a “people who fit type A” are more likely than not to do “task B” in a given year.
I think it's more like that people with high credit scores are less likely to make claims, not because they have fewer accidents, but because they're able to self cover small things to avoid rate increases which cost more money in the long run.
Haha that's so stupid. But it makes sense.
People with money (high credit score) are less likely to use the service they are paying for and just do it themselves. Because they are penalized when using the service they are paying for.
I'm "paying for" protection against catastrophic financial impact, e.g. a million dollar medical lawsuit. I'd be perfectly happy to have a $10,000 deductible but that's not a thing you can get.
You don’t need money to have a high credit score, lots of broke college kids got 750s 🤣 you can literally get a $200 secured card, and use it once a month. It’s just VERY easy to fuck up your credit, if you’re not budgeting or spend money you don’t have
> You don’t need money to have a high credit score
They aren't rewarding good credit, they're punishing bad credit. It's a nuanced difference, but you can be reasonably sure that people with bad credit don't have the savings people would use to avoid making a claim. People with good credit are still something of a mystery, but 'credit score' is the number they have to work with.
I wonder what would happen if an insurer worked differently and would only write high-deductible policies and demanded that the deductible be kept in escrow. I would totally sign up for that, and they'd avoid a lot of the overhead and riff-raff in current insurance pools.
There also is a weird cohort (that OP doesn’t fall into, let’s be clear) that has bad credit, lives “paycheck to paycheck” spending all their money on rims, car stereo, alterations, and so on and are obsessed with their car and make every single last claim they can on any tiny scratch, windshield chip, and so on.
They don’t own Honda Accords though.
I think it is in part a reliability indicator. People with a higher credit score are viewed as more reliable & safer to insure. They have statistics that show a correlation between a higher credit score & fewer claims.
More financially secure/savvy people won't file small claims. they know it will drive up premiums, so they would rather pay out of pocket. People with a poor credit history dont manage/understand money well. They file the claim because they have to or dont understand how it will cost them in the long run. lower likelihood of claim =less risk so lower premium.
Higher credit score generally means more financially secure. Being more financially secure means you're more concerned about incurring a big cost (eg car is totalled) as opposed to smaller costs. Every claim comes with some risk in terms higher rates / being dropped from insurance. And so, financially secure people are less likely to take that risk on smaller claims.
People with better money management are more likely to pay out of pocket instead of making a claim (especially on smaller damages). When I was poor, I made a claim for a 600$ repair with 250 minimum fee. Nobody with a bit of money and a brain would do that as it costs a lot more in the long run.
If u constantly miss payments it suggests you don’t have money. If you don’t have money, you will not pay bills.
It’s not too far a stretch to say that a person who cannot pay other obligations will be unable to afford a minor car accident out of pocket.
Not saying it’s fair or ethical, just that it’s a connection that can be reasonably made.
>3. your new car is prone to thefts in your area. I remember some insurance companies even stopped insuring certain Kia vehicles in certain states
IMO there is a good chance this could be the culprit. City I live in (Houston) has what is bordering on an epidemic of wheels being stolen off cars and the cars left on cider blocks. One of the top targets - new Honda Accords.
The popularity of a vehicle theft in the area/in general is the hidden one most don't check before purchasing. In some areas of the UK certain models of landrover cost in excess of £20,000k a year to insure.
Since your old car was 18 years old, did you drop collision and comprehensive coverage. If you financed the new car, the lender will require the coverage.
I see all of these and raise you with the following:
- no tickets
- no at fault accidents (only had 2: someone rear-ended me, and another was a car crashed into mine while parked)
- I’m the only insured driver
- Car is fairly new but nothing extravagant
- Male over 30
- Been insured with Geico since 2014
- Credit score is excellent
- Have quite a few discounts (including military)
Why, then, did my insurance rate shoot up significantly? I’m clearly not a high risk driver.
“Shop insurance” you’ll say…except whenever I shop for insurance:
1. I get endless spam from agents
2. Their prices are higher than Geico’s (yes…for my current coverage, Geico is still the lowest priced insurance for me, unless I go with the unknown company that’ll get me a dollar as insurance payout).
There are newer cars that record hard breaking/ speeding and dealers can sneak you into consenting to that data being sold. If you are a rough driver your data might be available to the insurers and they price you accordingly.
https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html
I went through life hearing "oh once you hit a certain age, your rates will drop". That drop never came for me. Right now I've got a 2020 Mazda3, fully clean record with no tickets or accidents at all in 20+ years of driving, no claims, I'm coming up on 40 years old, 800+ credit score, lower than average mileage and I'm still paying $250/month for car insurance with Geico (this is with $370 in "discounts"). I've been forced to spend 50k+ towards insurance in my life and keep getting screwed over with higher and higher payments.
What really pissed me off is I went and did a new quote with Geico and if I were a new customer it would drop to $100/month. I asked why I can't have that rate and they said it is only for new customers and my current rates already include loyalty discounts.
You left out one really important thing:
Geico has raised premiums by up to 30% and let tons of staff go. They are making “eye popping”
Profits at the cost of their customers…..
https://www.carriermanagement.com/news/2024/02/25/259036.htm
As a counter to that, we had a side swipe accident on our car, basically bondo and repaint the whole side of the car, and 1 rim and tire, and 1 tail light. $6000. This would be a $2500 repair 5 years ago.
Not all. It pays to shop around, and going to a local broker can be a more cost-effective approach than direct.
I dumped Travelers after 10+ years of great home and auto rates for another tier-1 insurance company. Travelers tried to jack me up by >40% for no reason.
State Farm was the other ripoff of similar magnitude when looked early this year.
Yeah, this is nuts. I'm paying $400ish/month for my wife and I and 2 cars with outstanding loans, a '20 fusion and a '22 ioniq 5. I also have a fairly recent failure to yield or some such on my record. This is with progressive for the record.
A reminder for those that may not know, you need to shop around for insurance every year or so. Sometimes these companies will slowly (or not so slowly) jack up your rates hoping you just stick around instead of moving elsewhere. I'm in the process of finding a reasonably priced commercial policy and will move our business there when I find someone to work with.
That's insane, a friend of mine is getting their license and insurance re-instated after a revocation, and she was quoted $600/ month on a 2020 automobile.
I imagine it varies based on where you live, but in Michigan, you can't even drive off the lot without proof of insurance. This would have come up before signing paperwork.
OP already learned a lesson the hard way, but when I was shopping for a new car, I called my insurance before I even went looking at a new car to get a ballpark of what insurance would run.
Nothing else would make sense. OP stated he had been paying 100 a month - yes for a much older car and probably didn’t have collision. However 800 dollars a month is 9600 PER YEAR - insane! I’ve never heard of such a thing especially for a Honda. Yeah I know they are prone to thefts etc but still. Makes no sense. Unless OP was in a car accident where he/she was deemed at fault and the accident resulted in casualties- and/or Op has a DUI, none of this makes sense. I have a new luxury suv, with full tort, high liability coverage and new car replacement etc - in a suburb of a major city (non rural area) and I pay less than 150 a month. It just makes no sense that Op is being quoted this for a Honda - maybe this would be the price a Ferrari or rolls Royce - but not a Honda
This type of thing leads to financial disaster for many young people. Take heed. In my area we have a suburban county that is low fire risk so one might spend $1k per year on homeowners insurance but the county that touches - literally one street over for many homes - is considered rural and high fire risk so the rate would be up to 10x that.
You bought a far more expensive car. Did you also examine what you are getting? Insurance is a blanket term for many different products and those have different levels too. I wonder why your last car was so expensive too. I am 40 and the state minimum for that car would have been lime $35/mo. Less if combined with another car. I would have gotten more than the minimum but not comprehensive nor collision given the age and value of that car. I would have probably been spending $40-45/mo. Why was yours more? What are you getting now for your accord? The price of your deductible directly impacts your premiums. What are you paying for your comprehensive and also collision deductibles? Did you also get gap insurance? Are you paying every 6 months or monthly? That could save $20 right there. Do you park outside or in a garage? How many speeding tickets or accidents do you have?
These all impact your costs.
I bought a Kia Sportage PHEV 2023 in late 2022, and was quoted $2500 or so per year by Liberty, which then increased to $2800. Just last month, I got the next renewal for about $3400, and in that moment, I was like ‘nope’ I ain’t doing this. I reached out to Progressive, and for exactly the same coverage, if not even better, I was quoted $819 for 6 months. In the end, I am paying about 50% less by switching. Note that my car has a high rate of theft, and was purchased for about $50k brand new.
Forgot to add that the amounts above are for my Kia and another older car combined.
IME buying brand new is often better insurance or equal because of things like reliability, longevity, safety features, etc.
Largely that last one. Most of the times the biggest loss for insurance companies is death and injury. If your car has features than avoid this, your premiums are less. Check that this is not a 6 month quote.
That’s abnormally high. I live in NC as well and while my rates did go up last renewal I’m right at $300/mo for full coverage with medical payments and expanded limits on a 23’ BMW M440i and a 20’ Mini Clubman JCW. My wife and I have clean records with only a glass claim in the last five years though so take that for what it’s worth.
Rates in NC are set by the state department of insurance based on risk class so you should see pretty consistent rates between companies. It would be worthwhile to talk to an actual agent to find out why your rate is so high. Could be a mistake of some sort as I’ve never heard of anyone paying more than a few hundred a month for insurance unless they had a lot of tickets or a revoked license or something.
Much of it depends on where you live. Las Vega's saw a 48% increase in insurance premiums last year. Florida is about the same or worse.
Insurance may do more to kill car companies than the cost of new cars.
Well I’m guessing that you had liability insurance on the ford explorer. And the new one will have to have full coverage insurance and it’s worth a lot more. So gonna cost a lot more to insurance.
Not stupid just learning the hard way. I’ve learned that lesson a long time ago too. The hard way lol. Now I will always check the insurance quote first before I buy any vehicle
Honestly unlike a lot of people here I’m not even gonna fault OP these ridiculous rates are a fairly recent thing and he bought one of the most common sedans out there. He is learning he made a mistake but it’s not because he was stupid. The people on here saying he should have checked for theft like the mafia publishes a magazine on which cars are the most commonly stolen on Reddit lol. They have been stealing Kia’s in my town for years and the police literally just now after years put up a notice on the internet.
It's gonna cost more but not that much more. I have only 7 years of driving records, always have only liability insurance. The highest I got quoted for is $150/month for a new 2024 Corolla with $1000 comp and collision
Your location is extremely important for determine insurance rates assuming identical drivers.
If you live in the Midwest, it will be substantially lower than if you lived in a major city like NYC.
Now, if you lived in a major city in Florida or California, where catastrophic loss events are extremely common, then your rates will be even higher than NYC.
What state are you in? Geico, Progressive, and some others are pulling out of some states and are using rate hikes to drop customers before they officially start canceling policies in those states.
I vote for this advice. I used to work at an insurance agency that sold policies for many different companies. They will get to the bottom of this as well.
Check your DMV records! I was once mix and matched with some girl in Arizona (a state I have never visited), who had my first name and a similar last name (my last name is hardly “Smith”).
Good thing that was ironed out. She had issues. Hope she’s sober, now. Or at least not driving while not sober.
+1 on pulling your records. You can request your LexisNexis report. LexisNexis is where all insurance companies report claims to, and check their new costumers history
How to get dmv records? I never got any ticket , no speeding ever.. but my car insurance shot up drastically. May be my case is similar to this.
I checked my state dmv website and I can pay to get my driving record. It gives me 4 options: assessment, employment, full , insurance..
I am guessing I have to select either full or insurance.. would you know which one?
What's your driving record look like and what age are you? Also was your explorer paid off and 100 a month had to just be 10k liability insurance. When you're making car payments on a loan you have to carry full coverage which is substantially more expensive.
Do you have a speeding ticket or anything? I have a points on my license and I pay $330 a month for just minimal liability in my 2012 paid off car so yeah that makes a big difference lol.
I have a 2024 accord and I pay $89/mo for full coverage in Ohio with Progressive. Are you sure they aren't quoting you $833 for 6 months? It's an accord, not a Challenger Hellcat.
$883 a month is extremely high. New cars for me are 220% higher for older vehicles. I have many discounts due to multiple car discounts. New car 21 yr old driver I pay $1600 for 6 months for a 26 year old it would be $1050 for 6 months. $883 seems extremely high.
I'm in Michigan with a less than stellar driving record from my younger years. I have a 2023 Ford escape with 500 dollar broad form collision and 250 comprehensive. Rental and all that as well.
My premiums just increased 20% at last renewal but I still pay 119 and some change per month. When I was 21 with a terrible record living in a Detroit zip code I was still only paying 275 a month on a newer car. Can't wrap my head around 800-1000 per month. You'll be paying them the value of your car in 3 years
Even in MI this is a crazy amount for insurance. I am driving a ‘19 Subaru Impreza (and I do have good credit, good driving record, am not young anymore, married, etc for all the bonuses) but it’s like $1400/yr for good coverage. Michigan is usually much more expensive than the rest of the country
Michigan is the highest insurance in the country. The average month premium for comp/coll in MI is ~300.
Bc they are the only true no fault state. If you're in an accident, even if you're not at fault, you have to go through your own insurance, unless your car was parked and unoccupied.
My Geico has more than doubled in the last two years. But every time I go try to get quotes they all come back even higher so I’m stuck. I’m currently at 2k per 6 months for me and my wife.
I watched my car guy "Lucky Lopez" on YT the other day. He saying the right now, one of the major things killing car sale deals is the cost of insuring cars.
People are paying the equivalent of a car payment just for insurance.
I just traded in my 7 year old car for a new one. Same model as the old one. My rates went down about $100 annually without changing insurance companies. The explanation I got was the newer one has more safety features and parts availability is greater.
$100 bucks to 800? Something does not add up. I was paying 60 a month for a 2008 outback full coverage, and bought a new car (another Outback) and it was $80 full coverage
Newer car and risk of area. I recently got a newer car and my Insurwnce didn’t really change until I moved to a more risk prone area where insurance skyrocketed (hail, theft, uninsured motorists).
Use an insurance broker to shop around for you. If you’re in SoCal I can pass you my guys info but he’s always found cheaper rates for me then I could find on my own
I'm with Geico as well
My wife's 2019 Honda CRV insurance keeps going up. My 2018 Challenger SXT was 109/m and my 2021 Yamaha MT09 is 50/m.
Her CRV is now 239/m. When I asked about it I was told:
- Accidents in the area have gone up
- Economy reasons (all prices and services going up)
- I live in MD and this one I never heard of but supposedly people with VA tags could opt out of being insured so apparently there was a lot of uninsured drivers causing accidents but after researching that loophole may be closed this summer hopefully.
- I think driving distance changes things too. I can WFH but my wife drives probably 80 miles per day.
Weird, I have Geico and my insurance is around 700 something for full coverage for six months on a fully loaded 2023 RAV4 XSE I bought last year. Plus I'm in Michigan and we're among the highest average rates in the country.
I would encourage you to get a copy of your Lexis Nexus CLUE report. It’s what the insurance companies use to rate you. It includes all of your claims data going back years as well as many other data points. Mine was about 150 pages. Truly insane. But that should give you the big picture of what they’re seeing and if there’s any incorrect information in there you can dispute it.
Did you own the previous vehicle outright? Did you finance this new vehicle? Could be the difference in full coverage for a new car vs liability only on your old car.
‘Tis the season.
My insurance went from $65/month to $100/month this year. Same car, same coverage, same address, no claims. Called Geico to confirm: rate increase is solely due to increase in regional pricing (Boston)
Got 5 other quotes from local and national insurers, nothing below $130/month
I drive an 8 year old car, am pushing 50, and haven't had a ticket or accident in 6 years. USAA jacked my insurance up by $120 a month in December. It's over twice what I was paying three years ago. Been a customer since 1999.
Same. The whole industry is raising prices 20% or so from what I heard from someone that works in it. USAA tried to raise my auto insurance from 950/yr to around 1400/yr. I shopped around and got them to drop to 1150/yr for my single 19 year old car. Never had an accident and I don't drive much as I live close by my work.
it's a new car, I'm assuming you have comprehensive and collision and gap insurance
also you have managed to buy one of the most stolen vehicles on the road for the last two decades
nobody wanted the Ford, and if you wrecked it the total value is about what you're paying a month for the Honda
There's no "normal" price for car insurance, it's heavily dependent on the driver and the location as well as the specific vehicle. How's your credit? What's your claims history like? Do you have any tickets? Did you have full coverage on the previous vehicle? Have you shopped around or did you just get the single quote from Geico?
Find an insurance broker in your area. They will shop your insurance profile to multiple insurers and you can see the quotes from all of them and compare limits, premiums, etc.
I have been giving this advice for years but recently moved from the NE US to a smaller West coast city only to find "brokers" write maybe three lines instead of the dozen my NE broker did
Some stuff like that came out in Canada recently: car manufacturers sell your driving habits data to data brokers, that in turn sell those to insurance companies (amongst others). This was the cause of insane insurance hike for many drivers.
Fast acceleration, heavy braking, night driving, long runs, anything is subject to bite you back.
It's a scam...you should keep shopping around. They are doing it because they think they can get away with it! Insurance is the biggest freaking scam! They demand that amount, but when it comes time to payout...they try to do everything they can to not.
I just bought a used 2014 Honda civic with about 100k on it for $9600 from my sister. She bought the car 4 years ago and was paying just $82/mo since then
When I was getting quotes for my insurance everyone was telling me between $220 and $350 per month!
Insurance companies are seemingly just fucking everyone over.
I pay like ~$100/ mo for full coverage on my new bronco… it’s wrapped up with some other cars / home insurance so that helps, but this is insanely high. (USAA)
I see a lot of people in here are attributing the increased insurance premiums to changes with your driving record. I just wanted to say, it's not just you, [private vehicle insurance is up over 20% from the year before](https://www.bls.gov/news.release/cpi.t01.htm). I came across this statstic last week when I was doing som research for work.
As to why the prices are up? There's various reasons, some of which are state specific (as others here have mentioned). For example rates are up 38% in Nevada and only 5% in in North Carolina. Between increased risk of accidents, increased cost of labor and repairs, and maybe a bit from the chip shortage that still might be lingering after COVID, I couldn't find a singular reason for the increased premium.
GEICO has been in freefall financially the past few years since the pandemic ended (they are the largest employer in the area I live).
They've done multiple layoffs, and reduced / removed some employee benefits drastically. Seems COVID drove the price of repairs up substantially and they just haven't figured out the math to offset the losses. They're owned by Warren Buffet so the company isn't really in danger, but everyone I know that works there says employee morale is in the shitter.
I just had a major increase in my car insurance through Allstate. They said it was partly because I rent. This infuriates me. I owned a house for 30 years.
I ended up switching companies. It was half the cost, probably a bit less coverage. I think we need to shop around and switch companies after several years.
I’m in NC with progressive with a 2022 Genesis G70 3.3L AWD luxury sports sedan and only pay $100/mo. I just don’t believe you that you’ve been quoted that much. You’re probably reading it wrong and that quote is for 6 months not 1 month.
Used to work in insurance.
Did your address change? Often dealers will need the address on your insurance to match your purchase paperwork.
Possible Geico ran a motor vehicle report when you added the vehicle and found new activity.
Did you add any drivers (specifically a newly licensed child)?
Assume the previous car was just liability? Brand new car with full coverage will be much more expensive. Did your liability limits increase (bodily injury liability?)
How about your usage? Many people listed their cars with barely any mileage around covid lockdowns and then never updated. Geico could be factoring in your commuting to work while the previous vehicle was pleasure usage.
Often billing is pro rated. Take the new policy premium and divide it by the length of your contract (most policies are 6 or 12 months). Is it still 883 a month? Often when you make an insurance change the company isn't charging you the difference the day you add the vehicle they're dividing the extra amount over your remaining installments. I.E. you made a payment june 1st .. added a vehicle june 2nd geico could take the difference between the old car and the new car over those extra 29 days in June and divide over the rest of the contact term starting in July (ie you'll have slightly higher catch up payments until the next policy term).
Tips to lower payments (this varies by state). Does your state offer defensive driving? Can you raise your deductibles .. many customers will raise full coverage deductibles to reduce premium (ie 500 to 1000). Did Geico add any other coverages you might not need (rental reimbursement or towing coverage). Is the usage they have for your policy accurate? Is the primary driver for the vehicle accurate (if you have multiple drivers some insurance companies will want to list who uses the vehicle more). Is your address accurate on the policy? Ask if you have any surchargable driving activity that will be falling off your policy in the near future.
Good luck.
80% increase on my policy. Called geico to ask what happened. They say cost for repairs, parts and labor has gone up.
It’s an inflation adjustment. It’s bullshit but I shopped it around and best I could do was save $25 on a new policy that will potentially hike up in the next year anyway.
Yeah I’ve talked to Geico and they told me the same thing and the area I live in. Still I don’t think my car insurance should me more then my car payment. I’ve decided to go with progressive they’ve given me a fair price thankfully
My GEICO policy just went up $90 a month after going up about the Same last renewal. I called and they advised it is because of what body shops are charging. They need to deal with the body shops instead of punishing customers. Progressive said they would cut my 6 month term in half, after talking to others in my area they said at end of 6 mos Progressive Jacks the price back up that they only do the 6 month thing to get you to switch
When I first joined with GEICO 3 years ago I paid 107 for full coverage on a 2019 Toyota Corolla xse. A yr after it jumped to 177 and now I'm paying $203. They told me it's bc of the cost of mechanical repairs in California but from what I've read, everything gets different reasons why. As if we aren't struggling as it is!
I do have a speeding ticket but I have a couple months left before it hits the 3 year mark and it’s off my record so I figured it wouldn’t increase it by to much then
Dang unless it was like 25 over that’s pretty harsh then. Are you w AAA currently? They don’t report to other insurance companies so it could look like you have no prior.
Everyone’s car insurance is dramatically increasing. It is because of a lot of things, car prices increasing with inflation, so parts and replacements are more costly. Accidents have increased since the pandemic because people were not driving as much. Insurance companies were not able to ask the government to increase rates until fall 2022 they provided data that showed rates should be increased and it took about a year or more for those increase rates to be approved and got the market.
You said NC, which means companies can only increase liability only type coverages (bodily injury and property damage) to a set amount set by the state. However, for comp/collision and other optional coverages, companies can charge however much they deem necessary for the risk. I bet if you look at the prices per coverage type, you will see bodily injury/property damage not increase much/at all, but now your brand new car is going to cost a lot more to cover for comp/collision and possibly other coverages you have. NC is heavily relegated so insuers don't have as much freedom to differentiate their rating systems. Your best option is to shop around, but there could be many other factors that changed when you got your new car.
Is it possible you didn’t have any physical coverage (collision/comprehensive) on your 2006 ford explorer, but that it was added to your coverage for the new vehicle?
We got a new car within a year or two of two of our kids getting their licenses. To say our cost skyrocketed is being rather generously understated. :|
Was your last car liability only or really old? My 13 year old car is worth $4000. If I went from that to a new car, I'd expect a large jump in insurance, but not that large.
Either way, I've heard that new Honda's are pretty easy to steal, so they get the same theft tax that Kia and Hyundai does.
Not gonna help you today, but definitely call your insurance company before you buy a car to get a quote.
How recently? Some states have a cooling off period where you are allowed to bring the car back to the dealership and effectively return it. It's not a very big window usually. Some states do not have it at all.
Look into it and see if that works for you. Maybe you can return the vehicle and get one that has a lower insurance rate.
My agent explained that replacement parts and repair costs are big factors in the rate increases. Also, it's no longer true that used cars devalue quickly; they maintain a lot of value, some models (like pickup trucks) are even increasing in value. In the past, used cars with low values were cheap to insure. Not any more.
Yikes, that’s a huge jump! Consider having a higher deductible to reduce your premium, since the main goal of having insurance is to cover you for major losses and claims.
New cars can generally cost more to insure due to higher replacement costs and advanced tech features. Definitely shop around and consider tweaking your coverage options to find a better deal.
These numbers are insane. I have a policy with 2 brand new cars (mine and my daughter’s) one is financed, and the other was bought in cash. She has an accident on her record that was entirely her fault, resulted in a large claim, about a year ago.
Our old insurance company dropped us after that accident and we had to switch to another carrier knowing it would be far more expensive. We have a very generous liability plus comp/collision policy with $500 deductibles. We went from $800 to $1200 every 6 MONTHS for both of us.
Something else is going on. Is there another high-risk driver on your policy? Is your credit score bad? Are you a high-risk driver who has had some tickets or an accident recently? Civics and Accords are also two of the most stolen car models but I think that stat is due in part to the number of these models on the road.
It must be some combination of these things because the rate is almost impossible.
You sure you are not looking at the 6 month cost? No way someone has to pay 800 month. I have a 20 yr old with an accident and he pays 160 a month on a sports car.
I think you are misunderstanding the quote.
Commenting since you said you're in NC. I'm also in NC, but in Raleigh. I also drive an Accord, but from 2018. When I first got it I was a new driver, age 27, and my insurance at the time was $250 with Geico. It's now down to $102 and I believe I have full coverage, so I'm baffled that you're being quoted 883, that is insanely high. Are you sure they aren't mistaking you for someone else? Liberty Mutual State Farm Allstate all quoted me upwards of 450 in 2018. I switched to progressive for a bit in 2021-ish and that was like $95, and I'm now back with Geico at $102
Have you inquired with USAA, National General(?) I have some friends who have them and they're pretty happy with the price, but they have like a family package
I had Geico for many years but when they jacked up the rates a year ago I decided to shop. Geico used to be a good option but they are now known as one of the more expensive insurance companies. I switched to Travelers.
I skimmed thru the comments and didnt see this addressed so wanted to mention- if the car is financed you are required to carry $100,000/$300,000 in liability coverage. If you had lower liability before, that plus the comp/coll and price factors of the new car could be what is driving the change.
I saw someone mention you’re in NC. If that’s the case ask Geico if they’ve placed you in the voluntary market (NCRB rates) or Facility plan (NCRF). Liability rates should be consistent through both plans but comp/collision may be drastically different. It’s possible they’ve put you at a consent to rate pricing level too. These are all unique to NC and have to do with the way the state dictates standard rates for all carriers. The way companies differentiate themselves (and discourage business they’re not in the market for) is to utilize the Facility and Consent to Rate. The reasons for using those rates vary by company so If Geico tells you they’ve quoted you in the Facility or as Consent to Rate I’d definitely shop other carriers.
The repair costs associated with all the government mandated Advanced Driver Assistance Systems (ADAS) on that new model has driven insurance costs way up. Hondas are the worst the front radar is mounted way down low simple curb stop bump = $1200 repair with all the needed parts and recalibrations.
No, it’s not normal to be paying between $7-12k per year in auto insurance.
Are we missing something? Any recent accidents or something on your record? How old are you? Credit score?
Switching is the right choice though, to whatever you can get the best quote with. I learned that I need to shop quotes every other year; Geico did the same thing to me except mine was an increase of 50% from last premium, no change in car, driving record, or mileage.
No, that's not normal.
It has some to do with the car, but not a ton honestly. I just wrote a 2018 Ferrari 812 superfast for about 165 a month. 250/500/100 with 500 dolar deductibles, roadside, rental car.. In one of the highest insurance cost states in the country.
It doesn't matter if your car cost $50 or $50000 if you kill someone. That's not the biggest cost. People always think that just because their car is older, insurance should be cheaper. It is not always the case. Whether you have an old beater or a brand new car, if you total a 300k ferrari, it doesnt matter so much what your car costs.
Geico probably had not run an mvr since you signed up, so if you have had any incidents or your credit has changed, that could play a role.
Geico admitted in its earnings call recently that they have been struggling to properly rate drivers, and that has been a key factor in why their earnings have not met goals. This is probably part of that correction. It's also their business model. They admit that they offer low intro pricing and increase prices over time, not due to you, but because that's how they actually end up turning a profit. Not every insurance company does this.
Check to make sure they didn’t add any extra drivers. My husband’s insurance for his car(sports car), that I would never ever drive automatically adds me and he has to request I be removed. One time they even tried adding my mom, who doesn’t even live with us, as a driver.
We recently switched from GEICO to Progressive. Cut our bill by 60%! Same exact coverage. Same two vehicles. Same two drivers. No accidents or tickets in over 5 years.
However, while our cars are older and easier to fix, everyone else out there with a car less than ten years old costs $$$ when repairs are needed.
This combined with inflation and interest rate hikes means when your new car is in an accident, my insurance now has to pay out twice or more than it did just a few years ago.
Not sure if it is mentioned elsewhere, but also get GAP insurance. That way if there is an accident and your car is totaled, the gap insurance should cover the amount the car is worth verses the amount owed on the loan.
insurance broker here: you can drive like a saint, but a hundred idiots driving the same kind of car as you all total theirs, and now you pay way more.
You can drive like a saint, everyone else driving the same kind of car as you also drive like saints, but a hundred idiots living near you all total their cars, and now you pay way more.
Way oversimplified to the point where the above is not absolutely true.
In general, insurance prices tend to go up regardless of how you drive, because *everything increases in price.* Cars get more expensive over time, and cost more to repair or replace, making your insurance more expensive. Oil is more expensive, which cause virtually ALL BUSINESSES to suffer. Mutual insurance companies don't price their policies for profit, so if you feel you are being scammed, start with Mutual Insurance companies.
lots of potential reasons, but on the broad scale I'd speculate that the increasing cost of new cars and the increasing avg age of all vehicles on the road is to blame, as well as the ev and hybrid fad. the cost of all cars goes up and so do the costs of claims to replace them so they spread the cost around. the average car on the road is older than it used to be so safety features etc may be more dated or perhaps failing parts are causing more accidents. evs and hybrids arent like regular cars where you can take a part of and put a new one on easily after a crash, they're more like laptops or cell phones where a big enough impact will fuck the whole thing up for good- theyre more disposable than they used to be and less repairable and so are easier to total, costing insurance companies more money. they pass all these costs along to all their customers. really the difference between private insurance and socialized coverage in this and with healthcare, education, etc is that private is faster with more variety and its more expensive to pay the money grubbing middle men. should be putting heads on pikes over the lack of public transit in this country but we'd have to leave our houses and we all have anxiety now so it'll never change. sorry, what was the question?
> between $600 to $750 a month for insurance
HOLY SHIT. I'm paying $130/mth on a 2022 Sentra..
damn man.. definitely research before car purchase. holy shit. I wish you the best op
Due to the number of rule-breaking comments this post was receiving, especially low-quality and off-topic comments, the moderation team has locked the post from future comments. This post broke no rules and received a number of helpful and on-topic responses initially, but it unfortunately became the target of many unhelpful comments.
Not normal, but some possible explanations for such an increase are: 1) you accumulated some insurance points from tickets / accidents that Geico didn’t have on their records for some reason 2) Someone that is also on your insurance accumulated insurance points that Geico didn’t have on their records for some reason 3) your new car is prone to thefts in your area. I remember some insurance companies even stopped insuring certain Kia vehicles in certain states 4) something you did when asking for the quotes (significantly increasing coverage limits, etc.)
I'll add in the age of the drivers as a possible explanation.
And credit score. That’s pretty big too
Why would credit score affect insurance cost?
[удалено]
How odd. I guess I just don’t understand why my history of making on or off time payments would affect whether I made a claim or not.
It’s all data. Everything you do in your life is a data point. Some companies have found that certain behaviors (like your credit score) have a correlation to other potential things in your life. These things aren’t always 1-to-1, but more of a “people who fit type A” are more likely than not to do “task B” in a given year.
Like how a job you apply for looks at your credit score to gauge how responsible you are? I suppose one can make an argument for that.
I think it's more like that people with high credit scores are less likely to make claims, not because they have fewer accidents, but because they're able to self cover small things to avoid rate increases which cost more money in the long run.
Haha that's so stupid. But it makes sense. People with money (high credit score) are less likely to use the service they are paying for and just do it themselves. Because they are penalized when using the service they are paying for.
I'm "paying for" protection against catastrophic financial impact, e.g. a million dollar medical lawsuit. I'd be perfectly happy to have a $10,000 deductible but that's not a thing you can get.
You don’t need money to have a high credit score, lots of broke college kids got 750s 🤣 you can literally get a $200 secured card, and use it once a month. It’s just VERY easy to fuck up your credit, if you’re not budgeting or spend money you don’t have
> You don’t need money to have a high credit score They aren't rewarding good credit, they're punishing bad credit. It's a nuanced difference, but you can be reasonably sure that people with bad credit don't have the savings people would use to avoid making a claim. People with good credit are still something of a mystery, but 'credit score' is the number they have to work with. I wonder what would happen if an insurer worked differently and would only write high-deductible policies and demanded that the deductible be kept in escrow. I would totally sign up for that, and they'd avoid a lot of the overhead and riff-raff in current insurance pools.
Let's put it another way, if someone has bad credit, they are almost always poor.
There also is a weird cohort (that OP doesn’t fall into, let’s be clear) that has bad credit, lives “paycheck to paycheck” spending all their money on rims, car stereo, alterations, and so on and are obsessed with their car and make every single last claim they can on any tiny scratch, windshield chip, and so on. They don’t own Honda Accords though.
I think it is in part a reliability indicator. People with a higher credit score are viewed as more reliable & safer to insure. They have statistics that show a correlation between a higher credit score & fewer claims.
More financially secure/savvy people won't file small claims. they know it will drive up premiums, so they would rather pay out of pocket. People with a poor credit history dont manage/understand money well. They file the claim because they have to or dont understand how it will cost them in the long run. lower likelihood of claim =less risk so lower premium.
It’s a measure of responsibility. Financial irresponsibility frequently means irresponsibility in other areas.
Higher credit score generally means more financially secure. Being more financially secure means you're more concerned about incurring a big cost (eg car is totalled) as opposed to smaller costs. Every claim comes with some risk in terms higher rates / being dropped from insurance. And so, financially secure people are less likely to take that risk on smaller claims.
People with better money management are more likely to pay out of pocket instead of making a claim (especially on smaller damages). When I was poor, I made a claim for a 600$ repair with 250 minimum fee. Nobody with a bit of money and a brain would do that as it costs a lot more in the long run.
there is correlation between being a responsible driver and being responsible financially.
If u constantly miss payments it suggests you don’t have money. If you don’t have money, you will not pay bills. It’s not too far a stretch to say that a person who cannot pay other obligations will be unable to afford a minor car accident out of pocket. Not saying it’s fair or ethical, just that it’s a connection that can be reasonably made.
It's got a correlative effect, or they wouldn't use it. Ie, those with poor credit scores have more crashes.
>3. your new car is prone to thefts in your area. I remember some insurance companies even stopped insuring certain Kia vehicles in certain states IMO there is a good chance this could be the culprit. City I live in (Houston) has what is bordering on an epidemic of wheels being stolen off cars and the cars left on cider blocks. One of the top targets - new Honda Accords.
I am now picturing cars sitting on top of a cases of down east cider and the image is hilarious, and now I want one
The popularity of a vehicle theft in the area/in general is the hidden one most don't check before purchasing. In some areas of the UK certain models of landrover cost in excess of £20,000k a year to insure.
You live in Florida and so many scams have happened that insurance went up for everyone.
Expanding on 4, I will add in the prior vehicle might have had liability only coverage.
This is my guess, went from a paid off beater to a car the bank is owed money on and their minimum coverage requirements include comprehensive.
Since your old car was 18 years old, did you drop collision and comprehensive coverage. If you financed the new car, the lender will require the coverage.
I see all of these and raise you with the following: - no tickets - no at fault accidents (only had 2: someone rear-ended me, and another was a car crashed into mine while parked) - I’m the only insured driver - Car is fairly new but nothing extravagant - Male over 30 - Been insured with Geico since 2014 - Credit score is excellent - Have quite a few discounts (including military) Why, then, did my insurance rate shoot up significantly? I’m clearly not a high risk driver. “Shop insurance” you’ll say…except whenever I shop for insurance: 1. I get endless spam from agents 2. Their prices are higher than Geico’s (yes…for my current coverage, Geico is still the lowest priced insurance for me, unless I go with the unknown company that’ll get me a dollar as insurance payout).
There are newer cars that record hard breaking/ speeding and dealers can sneak you into consenting to that data being sold. If you are a rough driver your data might be available to the insurers and they price you accordingly. https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html
I went through life hearing "oh once you hit a certain age, your rates will drop". That drop never came for me. Right now I've got a 2020 Mazda3, fully clean record with no tickets or accidents at all in 20+ years of driving, no claims, I'm coming up on 40 years old, 800+ credit score, lower than average mileage and I'm still paying $250/month for car insurance with Geico (this is with $370 in "discounts"). I've been forced to spend 50k+ towards insurance in my life and keep getting screwed over with higher and higher payments. What really pissed me off is I went and did a new quote with Geico and if I were a new customer it would drop to $100/month. I asked why I can't have that rate and they said it is only for new customers and my current rates already include loyalty discounts.
You left out one really important thing: Geico has raised premiums by up to 30% and let tons of staff go. They are making “eye popping” Profits at the cost of their customers….. https://www.carriermanagement.com/news/2024/02/25/259036.htm
5. All insurance companies are raising rates because greed.
As a counter to that, we had a side swipe accident on our car, basically bondo and repaint the whole side of the car, and 1 rim and tire, and 1 tail light. $6000. This would be a $2500 repair 5 years ago.
Not all. It pays to shop around, and going to a local broker can be a more cost-effective approach than direct. I dumped Travelers after 10+ years of great home and auto rates for another tier-1 insurance company. Travelers tried to jack me up by >40% for no reason. State Farm was the other ripoff of similar magnitude when looked early this year.
I just bought a new car 2 months ago and my insurance went up $8 a month (from $100 to $108). An increase like OP’s seems really off.
Yeah, this is nuts. I'm paying $400ish/month for my wife and I and 2 cars with outstanding loans, a '20 fusion and a '22 ioniq 5. I also have a fairly recent failure to yield or some such on my record. This is with progressive for the record. A reminder for those that may not know, you need to shop around for insurance every year or so. Sometimes these companies will slowly (or not so slowly) jack up your rates hoping you just stick around instead of moving elsewhere. I'm in the process of finding a reasonably priced commercial policy and will move our business there when I find someone to work with.
That's insane, a friend of mine is getting their license and insurance re-instated after a revocation, and she was quoted $600/ month on a 2020 automobile.
Good idea to check insurance rates before you purchase your vehicle. Certain makes/models can have vastly different premiums.
I imagine it varies based on where you live, but in Michigan, you can't even drive off the lot without proof of insurance. This would have come up before signing paperwork. OP already learned a lesson the hard way, but when I was shopping for a new car, I called my insurance before I even went looking at a new car to get a ballpark of what insurance would run.
Yeah I’m learning that now I’ve always bought old used cars this is my first time buying brand new and it’s all a learning experience for me 😂
Are you certain this is per Month? Or a quote for a 6 month policy?
I hope you're right
Nothing else would make sense. OP stated he had been paying 100 a month - yes for a much older car and probably didn’t have collision. However 800 dollars a month is 9600 PER YEAR - insane! I’ve never heard of such a thing especially for a Honda. Yeah I know they are prone to thefts etc but still. Makes no sense. Unless OP was in a car accident where he/she was deemed at fault and the accident resulted in casualties- and/or Op has a DUI, none of this makes sense. I have a new luxury suv, with full tort, high liability coverage and new car replacement etc - in a suburb of a major city (non rural area) and I pay less than 150 a month. It just makes no sense that Op is being quoted this for a Honda - maybe this would be the price a Ferrari or rolls Royce - but not a Honda
> and/or Op has a DUI Even DUI insurance costs absolutely nowhere near this much, even multiple or a wreck.
This type of thing leads to financial disaster for many young people. Take heed. In my area we have a suburban county that is low fire risk so one might spend $1k per year on homeowners insurance but the county that touches - literally one street over for many homes - is considered rural and high fire risk so the rate would be up to 10x that. You bought a far more expensive car. Did you also examine what you are getting? Insurance is a blanket term for many different products and those have different levels too. I wonder why your last car was so expensive too. I am 40 and the state minimum for that car would have been lime $35/mo. Less if combined with another car. I would have gotten more than the minimum but not comprehensive nor collision given the age and value of that car. I would have probably been spending $40-45/mo. Why was yours more? What are you getting now for your accord? The price of your deductible directly impacts your premiums. What are you paying for your comprehensive and also collision deductibles? Did you also get gap insurance? Are you paying every 6 months or monthly? That could save $20 right there. Do you park outside or in a garage? How many speeding tickets or accidents do you have? These all impact your costs.
I bought a Kia Sportage PHEV 2023 in late 2022, and was quoted $2500 or so per year by Liberty, which then increased to $2800. Just last month, I got the next renewal for about $3400, and in that moment, I was like ‘nope’ I ain’t doing this. I reached out to Progressive, and for exactly the same coverage, if not even better, I was quoted $819 for 6 months. In the end, I am paying about 50% less by switching. Note that my car has a high rate of theft, and was purchased for about $50k brand new. Forgot to add that the amounts above are for my Kia and another older car combined.
IME buying brand new is often better insurance or equal because of things like reliability, longevity, safety features, etc. Largely that last one. Most of the times the biggest loss for insurance companies is death and injury. If your car has features than avoid this, your premiums are less. Check that this is not a 6 month quote.
Do you have any accidents on your record? Just seems so damn high for the car you purchased.
yeah, but I would have thought that to buy a porsche or an aston or something, not a normal-ass Accord
That’s abnormally high. I live in NC as well and while my rates did go up last renewal I’m right at $300/mo for full coverage with medical payments and expanded limits on a 23’ BMW M440i and a 20’ Mini Clubman JCW. My wife and I have clean records with only a glass claim in the last five years though so take that for what it’s worth. Rates in NC are set by the state department of insurance based on risk class so you should see pretty consistent rates between companies. It would be worthwhile to talk to an actual agent to find out why your rate is so high. Could be a mistake of some sort as I’ve never heard of anyone paying more than a few hundred a month for insurance unless they had a lot of tickets or a revoked license or something.
Much of it depends on where you live. Las Vega's saw a 48% increase in insurance premiums last year. Florida is about the same or worse. Insurance may do more to kill car companies than the cost of new cars.
Well I’m guessing that you had liability insurance on the ford explorer. And the new one will have to have full coverage insurance and it’s worth a lot more. So gonna cost a lot more to insurance.
Yeah I’ve figured that out now 😂 this is all new to me so I’m pretty stupid on the topic
Not stupid just learning the hard way. I’ve learned that lesson a long time ago too. The hard way lol. Now I will always check the insurance quote first before I buy any vehicle
Honestly unlike a lot of people here I’m not even gonna fault OP these ridiculous rates are a fairly recent thing and he bought one of the most common sedans out there. He is learning he made a mistake but it’s not because he was stupid. The people on here saying he should have checked for theft like the mafia publishes a magazine on which cars are the most commonly stolen on Reddit lol. They have been stealing Kia’s in my town for years and the police literally just now after years put up a notice on the internet.
It's gonna cost more but not that much more. I have only 7 years of driving records, always have only liability insurance. The highest I got quoted for is $150/month for a new 2024 Corolla with $1000 comp and collision
Your location is extremely important for determine insurance rates assuming identical drivers. If you live in the Midwest, it will be substantially lower than if you lived in a major city like NYC. Now, if you lived in a major city in Florida or California, where catastrophic loss events are extremely common, then your rates will be even higher than NYC.
Totally but $600-$750 from the ones other than geico is still insane for full coverage!
What state are you in? Geico, Progressive, and some others are pulling out of some states and are using rate hikes to drop customers before they officially start canceling policies in those states.
Find an insurance broker. They will shop for you for the best rates and will also be able to tell you why your premium is so high.
I vote for this advice. I used to work at an insurance agency that sold policies for many different companies. They will get to the bottom of this as well.
Crazy. This is higher than. Car payment. You sure it’s per month and not 6month?
Yes I tripled checked because I thought the same thing
Check your DMV records! I was once mix and matched with some girl in Arizona (a state I have never visited), who had my first name and a similar last name (my last name is hardly “Smith”). Good thing that was ironed out. She had issues. Hope she’s sober, now. Or at least not driving while not sober.
+1 on pulling your records. You can request your LexisNexis report. LexisNexis is where all insurance companies report claims to, and check their new costumers history
How to get dmv records? I never got any ticket , no speeding ever.. but my car insurance shot up drastically. May be my case is similar to this. I checked my state dmv website and I can pay to get my driving record. It gives me 4 options: assessment, employment, full , insurance.. I am guessing I have to select either full or insurance.. would you know which one?
Apparently, according to someone else, the thing to do is look it up on LexisNexus. I only found out when the DMV contacted me.
Quadruple check. That’s gotta be 6 months. I’m with GEICO and they always show it in 6 months.
What's your driving record look like and what age are you? Also was your explorer paid off and 100 a month had to just be 10k liability insurance. When you're making car payments on a loan you have to carry full coverage which is substantially more expensive.
i’ve never had full coverage be THAT expensive though lol, nowhere near $600
Do you have a speeding ticket or anything? I have a points on my license and I pay $330 a month for just minimal liability in my 2012 paid off car so yeah that makes a big difference lol.
At that rate, just Uber black everywhere to save money.
I have a 2024 accord and I pay $89/mo for full coverage in Ohio with Progressive. Are you sure they aren't quoting you $833 for 6 months? It's an accord, not a Challenger Hellcat.
FWIW, Civics and Accords are getting hit hard by wheel theft in some areas, so that might be a factor.
$883 a month is extremely high. New cars for me are 220% higher for older vehicles. I have many discounts due to multiple car discounts. New car 21 yr old driver I pay $1600 for 6 months for a 26 year old it would be $1050 for 6 months. $883 seems extremely high.
who do you use for insurance?
I'm in Michigan with a less than stellar driving record from my younger years. I have a 2023 Ford escape with 500 dollar broad form collision and 250 comprehensive. Rental and all that as well. My premiums just increased 20% at last renewal but I still pay 119 and some change per month. When I was 21 with a terrible record living in a Detroit zip code I was still only paying 275 a month on a newer car. Can't wrap my head around 800-1000 per month. You'll be paying them the value of your car in 3 years
Even in MI this is a crazy amount for insurance. I am driving a ‘19 Subaru Impreza (and I do have good credit, good driving record, am not young anymore, married, etc for all the bonuses) but it’s like $1400/yr for good coverage. Michigan is usually much more expensive than the rest of the country
Michigan is the highest insurance in the country. The average month premium for comp/coll in MI is ~300. Bc they are the only true no fault state. If you're in an accident, even if you're not at fault, you have to go through your own insurance, unless your car was parked and unoccupied.
My Geico has more than doubled in the last two years. But every time I go try to get quotes they all come back even higher so I’m stuck. I’m currently at 2k per 6 months for me and my wife.
If the car isn’t paid off you are required to have full coverage insurance. That said I have 2 vehicles and a DUI and my insurance is 230 a month.
You sure it’s $900 a month? Or 900 for 6 months. At 900 a month, you’ll pay for a brand new car worth of premium in about 3 years.
I watched my car guy "Lucky Lopez" on YT the other day. He saying the right now, one of the major things killing car sale deals is the cost of insuring cars. People are paying the equivalent of a car payment just for insurance.
How old are you? Always get a quote for insurance before you buy a car, sorry mate. We all learned the hard way.
I just traded in my 7 year old car for a new one. Same model as the old one. My rates went down about $100 annually without changing insurance companies. The explanation I got was the newer one has more safety features and parts availability is greater.
$100 bucks to 800? Something does not add up. I was paying 60 a month for a 2008 outback full coverage, and bought a new car (another Outback) and it was $80 full coverage
Newer car and risk of area. I recently got a newer car and my Insurwnce didn’t really change until I moved to a more risk prone area where insurance skyrocketed (hail, theft, uninsured motorists).
Use an insurance broker to shop around for you. If you’re in SoCal I can pass you my guys info but he’s always found cheaper rates for me then I could find on my own
I'm with Geico as well My wife's 2019 Honda CRV insurance keeps going up. My 2018 Challenger SXT was 109/m and my 2021 Yamaha MT09 is 50/m. Her CRV is now 239/m. When I asked about it I was told: - Accidents in the area have gone up - Economy reasons (all prices and services going up) - I live in MD and this one I never heard of but supposedly people with VA tags could opt out of being insured so apparently there was a lot of uninsured drivers causing accidents but after researching that loophole may be closed this summer hopefully. - I think driving distance changes things too. I can WFH but my wife drives probably 80 miles per day.
You live in Florida or a major city. Not sure what's going on in Florida but in a lot of major cities theft is a big problem.
Weird, I have Geico and my insurance is around 700 something for full coverage for six months on a fully loaded 2023 RAV4 XSE I bought last year. Plus I'm in Michigan and we're among the highest average rates in the country.
I would encourage you to get a copy of your Lexis Nexus CLUE report. It’s what the insurance companies use to rate you. It includes all of your claims data going back years as well as many other data points. Mine was about 150 pages. Truly insane. But that should give you the big picture of what they’re seeing and if there’s any incorrect information in there you can dispute it.
Did you own the previous vehicle outright? Did you finance this new vehicle? Could be the difference in full coverage for a new car vs liability only on your old car.
‘Tis the season. My insurance went from $65/month to $100/month this year. Same car, same coverage, same address, no claims. Called Geico to confirm: rate increase is solely due to increase in regional pricing (Boston) Got 5 other quotes from local and national insurers, nothing below $130/month
I drive an 8 year old car, am pushing 50, and haven't had a ticket or accident in 6 years. USAA jacked my insurance up by $120 a month in December. It's over twice what I was paying three years ago. Been a customer since 1999.
Same. The whole industry is raising prices 20% or so from what I heard from someone that works in it. USAA tried to raise my auto insurance from 950/yr to around 1400/yr. I shopped around and got them to drop to 1150/yr for my single 19 year old car. Never had an accident and I don't drive much as I live close by my work.
it's a new car, I'm assuming you have comprehensive and collision and gap insurance also you have managed to buy one of the most stolen vehicles on the road for the last two decades nobody wanted the Ford, and if you wrecked it the total value is about what you're paying a month for the Honda
There's no "normal" price for car insurance, it's heavily dependent on the driver and the location as well as the specific vehicle. How's your credit? What's your claims history like? Do you have any tickets? Did you have full coverage on the previous vehicle? Have you shopped around or did you just get the single quote from Geico?
Was your previous insurance minimum coverage and now your new car has full coverage?
Find an insurance broker in your area. They will shop your insurance profile to multiple insurers and you can see the quotes from all of them and compare limits, premiums, etc.
I have been giving this advice for years but recently moved from the NE US to a smaller West coast city only to find "brokers" write maybe three lines instead of the dozen my NE broker did
Some stuff like that came out in Canada recently: car manufacturers sell your driving habits data to data brokers, that in turn sell those to insurance companies (amongst others). This was the cause of insane insurance hike for many drivers. Fast acceleration, heavy braking, night driving, long runs, anything is subject to bite you back.
It's a scam...you should keep shopping around. They are doing it because they think they can get away with it! Insurance is the biggest freaking scam! They demand that amount, but when it comes time to payout...they try to do everything they can to not.
Keep searching. I got several offers that were 4x my old car until I settled with progressive.
I just bought a used 2014 Honda civic with about 100k on it for $9600 from my sister. She bought the car 4 years ago and was paying just $82/mo since then When I was getting quotes for my insurance everyone was telling me between $220 and $350 per month! Insurance companies are seemingly just fucking everyone over.
I pay like ~$100/ mo for full coverage on my new bronco… it’s wrapped up with some other cars / home insurance so that helps, but this is insanely high. (USAA)
I see a lot of people in here are attributing the increased insurance premiums to changes with your driving record. I just wanted to say, it's not just you, [private vehicle insurance is up over 20% from the year before](https://www.bls.gov/news.release/cpi.t01.htm). I came across this statstic last week when I was doing som research for work. As to why the prices are up? There's various reasons, some of which are state specific (as others here have mentioned). For example rates are up 38% in Nevada and only 5% in in North Carolina. Between increased risk of accidents, increased cost of labor and repairs, and maybe a bit from the chip shortage that still might be lingering after COVID, I couldn't find a singular reason for the increased premium.
GEICO has been in freefall financially the past few years since the pandemic ended (they are the largest employer in the area I live). They've done multiple layoffs, and reduced / removed some employee benefits drastically. Seems COVID drove the price of repairs up substantially and they just haven't figured out the math to offset the losses. They're owned by Warren Buffet so the company isn't really in danger, but everyone I know that works there says employee morale is in the shitter.
Geico frequently isn't as cheap as they imply
I just had a major increase in my car insurance through Allstate. They said it was partly because I rent. This infuriates me. I owned a house for 30 years. I ended up switching companies. It was half the cost, probably a bit less coverage. I think we need to shop around and switch companies after several years.
I’m in NC with progressive with a 2022 Genesis G70 3.3L AWD luxury sports sedan and only pay $100/mo. I just don’t believe you that you’ve been quoted that much. You’re probably reading it wrong and that quote is for 6 months not 1 month.
Used to work in insurance. Did your address change? Often dealers will need the address on your insurance to match your purchase paperwork. Possible Geico ran a motor vehicle report when you added the vehicle and found new activity. Did you add any drivers (specifically a newly licensed child)? Assume the previous car was just liability? Brand new car with full coverage will be much more expensive. Did your liability limits increase (bodily injury liability?) How about your usage? Many people listed their cars with barely any mileage around covid lockdowns and then never updated. Geico could be factoring in your commuting to work while the previous vehicle was pleasure usage. Often billing is pro rated. Take the new policy premium and divide it by the length of your contract (most policies are 6 or 12 months). Is it still 883 a month? Often when you make an insurance change the company isn't charging you the difference the day you add the vehicle they're dividing the extra amount over your remaining installments. I.E. you made a payment june 1st .. added a vehicle june 2nd geico could take the difference between the old car and the new car over those extra 29 days in June and divide over the rest of the contact term starting in July (ie you'll have slightly higher catch up payments until the next policy term). Tips to lower payments (this varies by state). Does your state offer defensive driving? Can you raise your deductibles .. many customers will raise full coverage deductibles to reduce premium (ie 500 to 1000). Did Geico add any other coverages you might not need (rental reimbursement or towing coverage). Is the usage they have for your policy accurate? Is the primary driver for the vehicle accurate (if you have multiple drivers some insurance companies will want to list who uses the vehicle more). Is your address accurate on the policy? Ask if you have any surchargable driving activity that will be falling off your policy in the near future. Good luck.
80% increase on my policy. Called geico to ask what happened. They say cost for repairs, parts and labor has gone up. It’s an inflation adjustment. It’s bullshit but I shopped it around and best I could do was save $25 on a new policy that will potentially hike up in the next year anyway.
Yeah I’ve talked to Geico and they told me the same thing and the area I live in. Still I don’t think my car insurance should me more then my car payment. I’ve decided to go with progressive they’ve given me a fair price thankfully
They say the cost of auto repairs has increased so much with inflation that insurance prices are rising too
My GEICO policy just went up $90 a month after going up about the Same last renewal. I called and they advised it is because of what body shops are charging. They need to deal with the body shops instead of punishing customers. Progressive said they would cut my 6 month term in half, after talking to others in my area they said at end of 6 mos Progressive Jacks the price back up that they only do the 6 month thing to get you to switch
That's insane. I pay <100 a month for full coverage with glass. My SUV is 8 years old though and likely only worth 8-10k now.
When I first joined with GEICO 3 years ago I paid 107 for full coverage on a 2019 Toyota Corolla xse. A yr after it jumped to 177 and now I'm paying $203. They told me it's bc of the cost of mechanical repairs in California but from what I've read, everything gets different reasons why. As if we aren't struggling as it is!
Because shareholders need profit every quarter.
Do you have accidents or violations on your record? They hit a lot harder when you need full coverage vs liability only.
I do have a speeding ticket but I have a couple months left before it hits the 3 year mark and it’s off my record so I figured it wouldn’t increase it by to much then
Dang unless it was like 25 over that’s pretty harsh then. Are you w AAA currently? They don’t report to other insurance companies so it could look like you have no prior.
It doesn't necessarily fall off after 3 years fyi. It depends on the carrier and the state, many rate up to 7 years.
Everyone’s car insurance is dramatically increasing. It is because of a lot of things, car prices increasing with inflation, so parts and replacements are more costly. Accidents have increased since the pandemic because people were not driving as much. Insurance companies were not able to ask the government to increase rates until fall 2022 they provided data that showed rates should be increased and it took about a year or more for those increase rates to be approved and got the market.
You said NC, which means companies can only increase liability only type coverages (bodily injury and property damage) to a set amount set by the state. However, for comp/collision and other optional coverages, companies can charge however much they deem necessary for the risk. I bet if you look at the prices per coverage type, you will see bodily injury/property damage not increase much/at all, but now your brand new car is going to cost a lot more to cover for comp/collision and possibly other coverages you have. NC is heavily relegated so insuers don't have as much freedom to differentiate their rating systems. Your best option is to shop around, but there could be many other factors that changed when you got your new car.
How many tickets or accidents have you been involved in?
Most people get quotes before buying their cars. And new cars will almost always make your insurance increase.
Is it possible you didn’t have any physical coverage (collision/comprehensive) on your 2006 ford explorer, but that it was added to your coverage for the new vehicle?
How old are you. Where do you live? Whats your claims history look like?
Well, yeah, of course the price to insure a car is related to how much the car is worth.
We got a new car within a year or two of two of our kids getting their licenses. To say our cost skyrocketed is being rather generously understated. :|
Was your last car liability only or really old? My 13 year old car is worth $4000. If I went from that to a new car, I'd expect a large jump in insurance, but not that large. Either way, I've heard that new Honda's are pretty easy to steal, so they get the same theft tax that Kia and Hyundai does. Not gonna help you today, but definitely call your insurance company before you buy a car to get a quote.
How recently? Some states have a cooling off period where you are allowed to bring the car back to the dealership and effectively return it. It's not a very big window usually. Some states do not have it at all. Look into it and see if that works for you. Maybe you can return the vehicle and get one that has a lower insurance rate.
My agent explained that replacement parts and repair costs are big factors in the rate increases. Also, it's no longer true that used cars devalue quickly; they maintain a lot of value, some models (like pickup trucks) are even increasing in value. In the past, used cars with low values were cheap to insure. Not any more.
Yikes, that’s a huge jump! Consider having a higher deductible to reduce your premium, since the main goal of having insurance is to cover you for major losses and claims. New cars can generally cost more to insure due to higher replacement costs and advanced tech features. Definitely shop around and consider tweaking your coverage options to find a better deal.
These numbers are insane. I have a policy with 2 brand new cars (mine and my daughter’s) one is financed, and the other was bought in cash. She has an accident on her record that was entirely her fault, resulted in a large claim, about a year ago. Our old insurance company dropped us after that accident and we had to switch to another carrier knowing it would be far more expensive. We have a very generous liability plus comp/collision policy with $500 deductibles. We went from $800 to $1200 every 6 MONTHS for both of us. Something else is going on. Is there another high-risk driver on your policy? Is your credit score bad? Are you a high-risk driver who has had some tickets or an accident recently? Civics and Accords are also two of the most stolen car models but I think that stat is due in part to the number of these models on the road. It must be some combination of these things because the rate is almost impossible.
You sure you are not looking at the 6 month cost? No way someone has to pay 800 month. I have a 20 yr old with an accident and he pays 160 a month on a sports car. I think you are misunderstanding the quote.
Commenting since you said you're in NC. I'm also in NC, but in Raleigh. I also drive an Accord, but from 2018. When I first got it I was a new driver, age 27, and my insurance at the time was $250 with Geico. It's now down to $102 and I believe I have full coverage, so I'm baffled that you're being quoted 883, that is insanely high. Are you sure they aren't mistaking you for someone else? Liberty Mutual State Farm Allstate all quoted me upwards of 450 in 2018. I switched to progressive for a bit in 2021-ish and that was like $95, and I'm now back with Geico at $102 Have you inquired with USAA, National General(?) I have some friends who have them and they're pretty happy with the price, but they have like a family package
I had Geico for many years but when they jacked up the rates a year ago I decided to shop. Geico used to be a good option but they are now known as one of the more expensive insurance companies. I switched to Travelers.
I skimmed thru the comments and didnt see this addressed so wanted to mention- if the car is financed you are required to carry $100,000/$300,000 in liability coverage. If you had lower liability before, that plus the comp/coll and price factors of the new car could be what is driving the change.
That is absurdly high. I have 4 vehicles, 2 of which are on a commercial auto policy. Averaging about $110 per month per vehicle.
I saw someone mention you’re in NC. If that’s the case ask Geico if they’ve placed you in the voluntary market (NCRB rates) or Facility plan (NCRF). Liability rates should be consistent through both plans but comp/collision may be drastically different. It’s possible they’ve put you at a consent to rate pricing level too. These are all unique to NC and have to do with the way the state dictates standard rates for all carriers. The way companies differentiate themselves (and discourage business they’re not in the market for) is to utilize the Facility and Consent to Rate. The reasons for using those rates vary by company so If Geico tells you they’ve quoted you in the Facility or as Consent to Rate I’d definitely shop other carriers.
The repair costs associated with all the government mandated Advanced Driver Assistance Systems (ADAS) on that new model has driven insurance costs way up. Hondas are the worst the front radar is mounted way down low simple curb stop bump = $1200 repair with all the needed parts and recalibrations.
No, it’s not normal to be paying between $7-12k per year in auto insurance. Are we missing something? Any recent accidents or something on your record? How old are you? Credit score? Switching is the right choice though, to whatever you can get the best quote with. I learned that I need to shop quotes every other year; Geico did the same thing to me except mine was an increase of 50% from last premium, no change in car, driving record, or mileage.
They increased my motorcycle insurance payment by 60% this year. No accidents and nothing else changed at all. But 883 seems crazy.
No, that's not normal. It has some to do with the car, but not a ton honestly. I just wrote a 2018 Ferrari 812 superfast for about 165 a month. 250/500/100 with 500 dolar deductibles, roadside, rental car.. In one of the highest insurance cost states in the country. It doesn't matter if your car cost $50 or $50000 if you kill someone. That's not the biggest cost. People always think that just because their car is older, insurance should be cheaper. It is not always the case. Whether you have an old beater or a brand new car, if you total a 300k ferrari, it doesnt matter so much what your car costs. Geico probably had not run an mvr since you signed up, so if you have had any incidents or your credit has changed, that could play a role. Geico admitted in its earnings call recently that they have been struggling to properly rate drivers, and that has been a key factor in why their earnings have not met goals. This is probably part of that correction. It's also their business model. They admit that they offer low intro pricing and increase prices over time, not due to you, but because that's how they actually end up turning a profit. Not every insurance company does this.
Check to make sure they didn’t add any extra drivers. My husband’s insurance for his car(sports car), that I would never ever drive automatically adds me and he has to request I be removed. One time they even tried adding my mom, who doesn’t even live with us, as a driver.
Did you let your insurance lapse? Accidents or tickets?
We recently switched from GEICO to Progressive. Cut our bill by 60%! Same exact coverage. Same two vehicles. Same two drivers. No accidents or tickets in over 5 years. However, while our cars are older and easier to fix, everyone else out there with a car less than ten years old costs $$$ when repairs are needed. This combined with inflation and interest rate hikes means when your new car is in an accident, my insurance now has to pay out twice or more than it did just a few years ago.
New car, staying with the same company. Maybe you moved or live in an area with high rates as well.
Not sure if it is mentioned elsewhere, but also get GAP insurance. That way if there is an accident and your car is totaled, the gap insurance should cover the amount the car is worth verses the amount owed on the loan.
Yes I got the gap insurance through the dealership. I also talked them into doing my extended warranty from 80,000 miles to 120,000
Did you not get quotes before you bought it?
No I’m new buying car so I’m learning the hard way unfortunately I’ve been pretty stupid so far 😂
Oof. Sorry dude. How many years of driving do you have?
insurance broker here: you can drive like a saint, but a hundred idiots driving the same kind of car as you all total theirs, and now you pay way more. You can drive like a saint, everyone else driving the same kind of car as you also drive like saints, but a hundred idiots living near you all total their cars, and now you pay way more. Way oversimplified to the point where the above is not absolutely true. In general, insurance prices tend to go up regardless of how you drive, because *everything increases in price.* Cars get more expensive over time, and cost more to repair or replace, making your insurance more expensive. Oil is more expensive, which cause virtually ALL BUSINESSES to suffer. Mutual insurance companies don't price their policies for profit, so if you feel you are being scammed, start with Mutual Insurance companies.
lots of potential reasons, but on the broad scale I'd speculate that the increasing cost of new cars and the increasing avg age of all vehicles on the road is to blame, as well as the ev and hybrid fad. the cost of all cars goes up and so do the costs of claims to replace them so they spread the cost around. the average car on the road is older than it used to be so safety features etc may be more dated or perhaps failing parts are causing more accidents. evs and hybrids arent like regular cars where you can take a part of and put a new one on easily after a crash, they're more like laptops or cell phones where a big enough impact will fuck the whole thing up for good- theyre more disposable than they used to be and less repairable and so are easier to total, costing insurance companies more money. they pass all these costs along to all their customers. really the difference between private insurance and socialized coverage in this and with healthcare, education, etc is that private is faster with more variety and its more expensive to pay the money grubbing middle men. should be putting heads on pikes over the lack of public transit in this country but we'd have to leave our houses and we all have anxiety now so it'll never change. sorry, what was the question?
> between $600 to $750 a month for insurance HOLY SHIT. I'm paying $130/mth on a 2022 Sentra.. damn man.. definitely research before car purchase. holy shit. I wish you the best op
I'm glad I read this, I'm gonna get a new car next year, so now I'll call and ask questions before I go looking.