22% Rate Increase from Geico 🤬

[240vPlug]

Well I just received my renewal bill for December for my Geico policy. It equals a 22% rate increase and Geico says "it's a standard state rate increase". No claims no credit score changes.

We have been with them for a year after State Farm increased our rates by 30% after being with them for 10 years.

It's not just the Tesla although that one saw the largest increase.

 

[Keeta29]

Well I just received my renewal bill for December for my Geico policy. It equals a 22% rate increase and Geico says "it's a standard state rate increase". No claims no credit score changes.

We have been with them for a year after State Farm increased our rates by 30% after being with them for 10 years.

It's not just the Tesla although that one saw the largest increase.

Had Progressive my first Tesla year, then the renewal rate was an additional $100. Moved over to Mercury insurance. Looks like I may be shopping every year if they come with an increase the second year.

 

[CapsEngineer]

Well I just received my renewal bill for December for my Geico policy. It equals a 22% rate increase and Geico says "it's a standard state rate increase". No claims no credit score changes.

We have been with them for a year after State Farm increased our rates by 30% after being with them for 10 years.

It's not just the Tesla although that one saw the largest increase.

Mine went up too., but I don’t know the percentage. I’m guessing it’s from the increasing cost of repairs.

That and all the lousy drivers on the road.

 

[240vPlug]

Mine went up too., but I don’t know the percentage. I’m guessing it’s from the increasing cost of repairs.

That and all the lousy drivers on the road.

Yeah that's what Geico told me. Cars cost more to repair and medical care is more expensive. Mine renews every six months and in June it was 22% less. I could see 5 or even 10% but a 22% increase seems redicilous to me.

It might still be a good rate though but I'm going to shop around just to be sure.

 

[Zalick]

It’s a complicated forumula but here is the basics:

Insurance companies have “risk pools”. They try to balance out the risk pools with good drivers and mediocre drivers in order to have the payouts in that pool be predictable. (Truly bad drivers are in their own type of high risk pool)

Insurance company profits are tightly regulated and rate increases are also regulated. When an insurance company makes bad bets and the pool pays out more than they anticipated they can have big losses. They are then allowed to increase rates to make up for those losses.

So bottom line: any company can have huge rate increases if they made bad bets the year before. I always encourage people to shop around every couple years and always when there is a big increase. You can save tons of money doing it this way.

 

[240vPlug]

It’s a complicated forumula but here is the basics:

Insurance companies have “risk pools”. They try to balance out the risk pools with good drivers and mediocre drivers in order to have the payouts in that pool be predictable. (Truly bad drivers are in their own type of high risk pool)

Insurance company profits are tightly regulated and rate increases are also regulated. When an insurance company makes bad bets and the pool pays out more than they anticipated they can have big losses. They are then allowed to increase rates to make up for those losses.

So bottom line: any company can have huge rate increases if they made bad bets the year before. I always encourage people to shop around every couple years and always when there is a big increase. You can save tons of money doing it this way.

Yes that's what we plan to do. I have until December to make a decision.

 

[kaimanson]

Same here from $224 to $280.

 

[ThomasD]

State Farm raised their rates across the board

 

[240vPlug]

State Farm raised their rates across the board

Yes, State Farm had increased me several times before I switched to Geico. The last state farm increase we received was 30%. It is looking like Geico is still the best rate around for us. I could save $10 a year going with a less known local insurance but it isn't enough savings to justify making a switch.

 

[Cypcode]

Same here from $224 to $280.

Oh wow!

 

[popgodazipa]

GEICO played the same card on me in September…moved to Tesla insurance and we now pay about $220 for our Y and S. They do offer a multi car discount

 

[Happy Hippo]

I just called to see how much it would be for me to replace my 22 Lexus with a 23 Tesla Model Y that I am supposed to pick up the end of the month- December. the premium went from $1200 for the Lexus to $2294 for the Tesla. Well I guess I will not be buying the Tesla. that is ridiculous for just insurance! Geico..

 

[popgodazipa]

Tesla insurance if you have it in your state is the way to go.

 

[Happy Hippo]

Tesla insurance if you have it in your state is the way to go.

No Tesla insurance in my state.

 

[yerEVan]

No Tesla insurance in my state.

Did you try Plymouth Rock or Erie? Not sure they are available in your state.

 

[Happy Hippo]

Did you try Plymouth Rock or Erie? Not sure they are available in your state.

I never even heard of those before. Do they pay out if you have a claim?

 

[ItsNotAboutTheMoney]

It’s a complicated forumula but here is the basics:

Insurance companies have “risk pools”. They try to balance out the risk pools with good drivers and mediocre drivers in order to have the payouts in that pool be predictable. (Truly bad drivers are in their own type of high risk pool)

Insurance company profits are tightly regulated and rate increases are also regulated. When an insurance company makes bad bets and the pool pays out more than they anticipated they can have big losses. They are then allowed to increase rates to make up for those losses.

So bottom line: any company can have huge rate increases if they made bad bets the year before. I always encourage people to shop around every couple years and always when there is a big increase. You can save tons of money doing it this way.

It's more basic than that.

Their software will try to figure out what's the most profitable amount to increase premiums and charge that amount.
If you want the best rates you have to keep changing companies.

 

[brancky3]

Same here from $224 to $280.

For just 1 car?!?! Or is that your entire package?

 

[Happy Hippo]

For just 1 car?!?! Or is that your entire package?

That is doable for me. They increased my to a $382 payment a month for a 23 Tesla, meanwhile I pay $197 for a 22 Lexus! I have to shop around for another insurance company.

 

[Cypcode]

With the way people are driving these days, I see why the premiums are going so high.