Notice of Non-renewal of Insurance

[gearchruncher]

It is my experience that EVERY insurance company will raise your rates every year to test how sensitive you are to price. I've been through 5 companies in the last 15 years because they all keep raising, and if you shop around you find a better deal. I've had State Farm, Libery Mutual, MetLife, Allstate, and PEMCO. At some point each one was the cheapest, yet 3 years later they are all somehow really expensive. I'm actually on a loop now, back to PEMCO after 15 years as they are back to the cheapest.

One hint that some people give is to get a few quotes about 3 months before your policy renews. Supposedly, the insurance industry shares data and your current company can see you are shopping around and are less likely to raise your rates. No idea if it's true or works....

 

[Max*]

It is my experience that EVERY insurance company will raise your rates every year to test how sensitive you are to price.

Don't make blanket statements.

I've had a few insurance companies do this, I've also had Geico continuously lower my rates. (I think Progressive might have too actually, but I can't remember anymore)

 

[SabrToothSqrl]

My friend wrote the very software that gauges how sensitive you are price increases. Basically if you're paying, say $1k/year and they bump you to $1100/year, some people wouldn't take the time/hassle to search around.Then balance the increase with the # of people, (and type) type meaning income to loss to risk ratio... and with some more fun math determine just how much money you can scam out of people to cover what are you legally minimally required to, when they need you the most

So, while it may not be apparent that "all" companies do this... Either they do... or they will soon enough... so I think it's safe to say it's standard practice.

 

[Dynastar]

We have USAA and pay about $1500/year for a Tesla and a Leaf. I don't have the breakdown between the two but it seems pretty reasonable.

 

[SabrToothSqrl]

Full Tort, maxed coverage on 2013 Model S, 2009 Tahoe, 2005 Mazda Tribute is about $2k/year... which is WAY too much. I plan to shop around next week.

 

[jbcarioca]

I partly echo other posters. I am now with Progressive, had an not-at-fault accident with no damage to Tesla and a slightly dented door to the culprit. Progressive was very professional and have since reduced my renewal rates twice (FWIW, So FL, generally six month policies. I went Porgressive because their rates were much cheaper than anybody else.

From having worked on statistical driver risk analysis, here is a list of the most significant variables, with the caveat that each company develops their own algorithms, so YMMV:
Not in order:
Driver
Age (the young side is known to nearly everybody but after age 60 rates begin to rise)
Gender,
Driving history (claims always count in UK, sometimes not-at-fault do not in US, CA varies)
Marital status,
Credit rating,
Residential status (own, rent, multi-family, single family, garage)
zip-4 (UK, CA full postal code, I have no positive knowledge about other countries), this can extend to even specific buildings.
similar for all stated drivers
Vehicle
every carrier determines risk profiles based, typically on:
accident rate of vehicle,
market position (exotic vs mainstream, performance vs non, SUV vs Sedan, etc)
cost of repairs, ease of finding repair facilities
manufacturer
and, factually, if the car is high performance, exotic or a Tesla: does anybody in actuarial or senior management at underwriting have one?
Regularly people who know the industry, including agents, dispute the last point. I know it to be true in the several specific cases I have studied. In two such cases vehicles owned by senior execs had lower rates and easier underwriting than did other similar vehicles not owned by staffers.
relationship
This one is mostly as advertised, but actually knowing underwriting executives helps. I have personally experienced that. FWIW, I do not know anybody at Progressive, my current insurer.
Several vehicles (unless drivers are young, accident prone or have less-than-very good credit), other non-vehicular covers.

There are rarely other variables than these, but the relative weights vary greatly. Almost any of the categories may have screening variables as well as ranking ones.