Please Help Me Understand.

[jHolden]

So i'm 32 years old. I drive a 2011 Ford Fusion SEL with 38k miles. I have never been in an accident. EVER. No claims in my entire life. I'm a Software Engineer and drive ~30 miles per-day to work, round trip.

I also own a home valued at 190k, 2000 sqft 4 bed 2.5 baths, well maintained.

Now 5-6 years ago i paid $325(same coverage, lowest on everything) every six months for a 350z sports car with 20k miles and $860 a year on my home.

What crazy thing changed in the world that says NOW I should pay $480 for a sedan with more miles and $1200 a year(best i could find) for the same house?

Oddly my father/mother who have had tons of claims over the years pay $380 Combined for his new GMC Seirra 4x4(40k truck) and her 2011 Chev Equinox with 10k miles. And $900 a year on their 3500 sqft $350k home, we live a couple miles apart.

What logical sense does this make? I get that insurance companies have some crazy algorithms that figure in a billion factors and statistics but com e on... this is not fair.

What am I doing wrong?

 

[saieddie]

Ask your agent. It could be a bunch of things from overall rate increases, to your credit score.

 

[Josh]

There are any number of factors that could impact the different ratings. Mileage on the car is probably the least relevant you've listed. Talking to your agent might be helpful, but here are some other things to consider:

-Insurance rates naturally go up and down based off of the way interest rates change which is something completely outside of your individual situation.
-The type of claims in their history may have exempted any of them from impacting their insurance rate.
-The type of vehicle itself can cost more to insure based on the damage it causes to others and the amount of damage it takes, not necessarily the dollar value of the car. For example, the liability on a large suv can be more expensive than on a small sedan because in sheer volume, if a 3/4 ton pickup hits another vehicle it's more likely to cause more damage than a small sedan. That's just a tiny piece of the puzzle. They also consider how likely a car is to be stolen, safety ratings, and the list goes on.
-With the house, you're insuring the cost of replacement. It should come as no surprise that it costs more to build now than it did in the past, so that's going to just keep going up. The cost of labor and materials to replace your house nail for nail and brick for brick is what you're insuring.

 

[Accelerated]

As far as the auto insurance goes, no idea. With regards to homeowners though, I can speak to the price increases. Homeowners insurance is not a profitable line for insurance carriers, and is more of a "hook" to get you in the door in the hopes that they will be able to market other forms of insurance to you.

I recently attended a claims conference, and a spokesperson from a major carrier said something that should easily explain the increase in homeowners rates.

"When times are calm, and there are few storms, homeowners insurance policies make very little money; When there is a busy storm season, they lose a lot of money"

 

[nyc2phi]

Not saying this is the reason but insurance is now based a lot on credit score. Your parents may have a better credit score then you do making them a better risk in the insurance carriers eyes.

 

[Scottyj]

TWO WORDS. RATE INCREASES..... you and everyone else my friend. The average American Family pays an additional $1,000 per year in premiums that ultimately stem from Insurance Fraud, and People who turn in claims for everything.

 

[Liz]

It seems like it could be a case of rate increases all around - I know several people who have come to me with similar problems. I wonder if it varies by state?

 

[Arthur Rudnick]

Hi Liz, welcome to the forum.
At the rate you're going, you'll be in the 1,000 post club by next Tuesday.

Next up............
The Fight Club.

 

[Liz]

Ha well thank you! I sure hope not .... maybe the Peace Club!

 

[b61mack]

jholden, what company are you with!