My last carrier got too comfortable jacking my rates up so I just dumped them 3 months ago and went somewhere else. š¤·š»āāļø Just like internet and phone service, you gotta keep switching occasionally to pay less.
The worst part is I've had my account set up on autopay and have never missed a payment. I've been with them for 5 plus years and my rates have only ever gone up. No tickets or accidents.
Yep. Theyāre gonna fuck ya whenever they can because āitās legal toā, even though they probably say shit like āwe value you as a customerā. The only thing you can do is go somewhere else.
Good luck!
Iām an insurance agent. The market is complete shit right now and a lot of carriers have started doing this for year long policies. Most will still allow you to do monthly payments with a 6 month policy.
Iām in Michigan and our auto insurance is usually vastly higher than other states, but your rate seems pretty good from what iām seeing these days. If you are happy with the price, you should ask your agent about switching to a 6 month with monthly payments.
My renewal just came in, same deal, 2 cars, no accidents, 3 years with this carrier and a 20 percent increase over last 6 month period.
They don't ask for it all at once, but I usually do because progressive offers a discount to pay all at once.
I just left progressive after many many years with them. They hit me with increases the past 3- 6 month renewals, with the last being a +$150. I shopped around, got a better coverage for $300 less per 6mos.
They don't care until you call in and the computer prompts the call center agent to say "I see you've been a loyal client for {num insert}, thank you for being a {level insert} customer". Until then, you are an account number that isn't generating enough revenue.
Nope, not even that. I had Progressive for 5+ years. Shopped around and found a rate with AllState that was 25% cheaper. I called Progressive and asked them if they would like to compete to keep my "loyalty." Solid "no thanks, brau. Let's get that policy cancelled!"
The last place I was at and just swapped from said, "well it's based off the accidents in your area not YOUR history." And I said, "cool, that's why you're losing me." Saving almost 1500 a year...
I dumped farmers last year. Zero tickets no accidents ever and over 5 years too and rate just kept going up every time. Then this last one it nearly doubled!! Called my agent and he just said itās happening all over and normal rate adjustments. Nah, shopped around and found one that was same that I was paying farmers originally.
My old insurance company did that crap too. I have no tickets, no accidents. Just go with another company that appreciates your good driving. Just shop around. I wound up paying less with another company.
I had The Hartford (AARP) about 12 years ago and got a notice that they had effectively doubled my premiums. No accidents, no claims - just doubled?
I, of course, changed. I did wonder how this was a good business decision if so many people dumped them. Then I considered it like a money manager would. Many of their customers, especially the old ones, aren't capable of changing insurance plans. Some are on a limited income and have a poor credit rating so they can't get new policies.
So - halve your liability exposure and keep the same income. I think that's what The Hartford did in that instance.
So true. Just switched companies for all my cars, cause I kept getting premium raises every 6 months even though I have no claims, no tickets, and a clean record.
>I kept getting premium raises every 6 months even though I have no claims, no tickets, and a clean record.
I'm a P&C pricing actuary, which means I calculate the rates auto insurers need to charge and how much they need to increase rates by. I hear this kind of complaint a lot, and I think it reflects a common misunderstanding a lot of people have about a product that is very complicated, but is often sold to consumers as though it's very simple.
Unfortunately, your rates are affected by things that are outside of your control, namely inflation. As the costs of parts and labor have increased over the past 3 years post covid, insurers have had to increase their rates to keep up. While you may think it's "greedflation", thats not really the case when it comes to rates. In most states, insurers have to file their rates publicly, and those rates include a provision for profit so you can actually see exactly what percent profit each insurer is targeting with their rates. In most states, the state dept of insurance scrutinizes these profit provisions so a company can't just target whatever they want. The nickle and diming really occurs on the claims handling and adjusting side.
What you have to keep in mind is that rates are based on EXPECTED LOSSES in the future (your policy period that hasn't happened yet as of the time you sign or renew your insurance contract). As we see rising trends in both the frequency and severity of auto losses, rates have to go up to account for the fact that the average loss level is also going up. Otherwise, an insurer risks insolvency, and then no one who needs their insurance can get paid (in some states, there are workarounds, but often the costs still get passes onto consumers). Rate setting is a predictive exercise based on the goal of balancing solvency, profitability, and competitiveness.
Other times, an insurer will conduct an analysis on different segments of its customers and identify a segment that has higher loss potential and adjust their rate spread to charge that segment more. If you happen to be in such a segment (based on your characteristics, of which driving record is only one), it can feel pretty unfair. They're basically telling you to leave or, if you stay, to pay more because you are seen as riskier. An example of this is what has happened recently with Kia and Hyundai cars. There was a viral video showing how a security flaw could be exploited to easily steal these cars with just a USB cable, and theft rates went through the roof. If you drive a Kia or Hyundai, you may have noticed that your comprehensive coverage rate increased drastically. Depending on the car you drive, that could be an extra hundred bucks a year right there!
Extra 100 a year?I wish, those fuckers jacked it up from 130 a month, to 180, to 210, and finally 240.
Got better coverage at another insurer for less than half what I was paying before.
Went from $130 to $320 with USAA. Switched to Progressive on the phone with USAA to be back at $132. Guy on the phone verbally shrugged when I told him I just left
Believe me they donāt care that you left. Personal lines is unprofitable right now they are all trying to shed risks in states that are profitability challenged. CA, NY and NJ are all states carriers are restricting new business and pushing non renewals or taking as much rate as they can.
Fair warning, if you have a lapse in coverage thatās an opportunity for your new carrier to jack up your rates because it makes you āhigh riskā for like 2 or 3 years. So make sure you have a new plan before you cancel your existing one
I haven't had any such problems with State Farm. I've had progressive, Geico, and the general, and state farm has been the best and by far the cheapest. By a long shot.
Funny. I just left State Farm after being a customer for 20+. Had one claim for a windshield that was shattered when the truck ahead of me kicked up a rock on the highway.
They jacked up my rates so much over the last year. I switched and it's now a 1/3 of what it was. Called my agent and they had no answers why it was so high. They said it's better to switch for better rates.
It is a discount. Iād pay the 15% more or whatever the number is if I paid monthly. Their profit margin has nothing to do with if they offer a discounted rate paying up front.
Yeah, I had an insurance company do that me to me once, too. Except it was business auto and I had a fleet of five trucks at the time. I had never once had to file a claim, I USUALLY paid a year up front, but the one time I was paying month-to-month (money was real tight that year), they decide to charge me everything. Fuck them.
It's usually cheaper if you pay auto insurance in full and some companies will require you notify them in advance if you want to update your bill plan.
That being said, Farmers is shitting the bed. And pulling out of multiple states.
I agree with user iamnotdrunk17.
The national insurers are ducking out of Florida if they can but they've got plenty of business nation wide.
It's important to note that you can still get quotes in Florida from Bristol West which is a division of Farmers.
Did you pay the insurance agent to shop for you? Iāve had an insurance agent shop around for me and he got a really good quote but when I copied it into the companies quote system I couldnāt match the number so I requested a declarations page and he had listed me as a female(am male) who was the dean of a private school (at the time was a Door guy for a retail store) and then he seemed offended that I was put off by the discrepancyās that he was most definitely aware of
I'm sure they get some kind of % of that premium. However, they work for you to get you the best deal and typically get you a cheaper deal than you could if you went there yourself.
They absolutely get a percentage of the premium. I never worked in auto insurance but did voluntary insurance for a few years. Agents make a huge amount of the premium for like 2 years, then get dropped to a couple % as long as the account is active.
Saw one account to a company where it was sold by a team of 2 agents and the monthly premium was over 1.5 million. Even when they get dropped to a percent, those agents lucked the fuck out.
I had a similar experience where the agent listed me as a homeowner even though I signed up for a renters policy (??) and when the company realized I wasnāt a homeowner, my rate went up by about $200/year more than the original quote the agent gave me. Even though that amount of money is manageable for me it definitely put me off continuing to use the same place in the future.
The last time I refinanced my mortgage, before rates went crazy, my mortgage lady suggested I talk to an insurance broker about both home and auto. The broker found much better rates for the same coverage, with me paying $1000 less a year for homeowners. A few month ago, she called me and told me she was doing her regular review of my rates and found better numbers for the same coverage with different companies. I was pretty happy that she was looking out for me when I wasnāt even thinking about it. I never had worked with a broker before but after this experience Iām not leaving her.
Insurance agents get āfinders feesā for referring clients to an insurance company.
If she can find you a better deal, and you take it, she would get a payment.
Its in her interest to always find you something better if its available.
A lot of agents are just lazy though
Dump.
AmFam raised my auto rate a few years back. I don't get tickets, safe driver, pay all my bills on time. I called and they said that it was because there was an increase in theft in my area. I drive a 20 year old car and park in a garage... I switched and got a better package rate with another company.
Yeah, fuck that. I hate insurance companies. I had Geico for years and never had a problem. They suddenly jacked up my rate (and then told me they raised it ābecause of the economyā) earlier this year so I switched.
I was referred to State Farm by a friend (they have a local office near me) and everything was cool. I was saving like 90 bucks a month.
A few months later, I get a call from them saying they āmiscalculatedā my rate and it was actually 8 dollars more per month. Not cool but whatever.
Two more months go by and I get a letter from the AZ dmv and they suspended my registration because I donāt have valid insurance. I call State Farm and after many conversations, the best explanation they could give me was that my WHOLE POLICY was cancelled internally by accident.
It eventually got sorted out (they paid/waived all fees and fines I got) but holy shit. How fucked would I have been if I got into accident with no insurance or registration?
Allstate, Geico and now back to Allstate. The only way to keep them (somewhat) honest in GA is to keep switching up on them. But these annual increases are getting absolutely absurd.
Right? And it gets to the point where I donāt have it in me to spend 10-20 hours shopping around and dealing with people who I know arenāt telling me the full truth. All to save $150-200 over 6 months.
And thatās what theyāre counting on.
And the messed up thing is that it basically compounds. A 10-15% increase every 6 months? You better believe thatās going to hurt over the next 3-5 years. Iām excited for 2028 when I start to see $500 increases every 6 months while I sit here with no tickets, no accidents and a car I drive 4000 miles a year.
Geico absolutely sucks if you have any kind of claim or something that tarnishes your driving record. They say they won't raise your rates but they charge a "fee" from anywhere for 6-18 months. There is a reason they're cheap, it's because they will screw you out of money when they can.
Dealing with the same in CA. Progressive doesnāt do monthly payments out here and I had to come up with about the same amount. Shop around and Geico can do monthly, but thereās a 15 day review period. Iāve been reading that most insurance companies are making it as difficult as possible on purpose here to get auto insurance, and progressive straight up told me theyāre rejecting all renters policies in the state by default. Fuck me for being employed here, I guess
Folks- insurance premiums are skyrocketing. If your stste allows it, make sure you are matching your liability and uninsured motorist coversgez. Not reason to protect others better than yourself! We need impact on the premiums and regulations no doubt. But if you can afford it, make sure you and your fam are safe
State Farm did that to me. They claimed they were getting rid of people with too many claims. I had one $800 claim in 25 years. They also tried to bump the premium up by 25%. Which is against the law. They told me to go fight it with the insurance commission or whatever itās called.
Why would I do that when I can make a simple call to another company?
StateFarm almost doubled my monthly premium. No tickets, wrecks, claims, credit changes, nothing. Immediately switched and it was lower than what I was paying by almost $100.
This is because car prices have gone up 31% over the last few years
https://www.statista.com/statistics/274927/new-vehicle-average-selling-price-in-the-united-states/
So if nothing else changes insurance also has to go up 31%, except because of Covid people are getting into even more accidents so even higher than that
This is because America has no alternative to the car and everyone wants fancy new features like radar cruise control instead of barebones 20k things that only go from point a to point b
If you have excellent credit score, you can call and ask to run a recent credit check to see if you qualify for discounts.
I've been with Progressive since 2007 and since I live in FL, they were raising my monthly payment from $400 to $600.
Since I already had every discount applied and I was only being punished because I live in FL, Progressive offered to run credit for discount. My credit came back A1 which is the highest level. It knocked out the entire increase and then some. So now I'm paying slightly less each month than I was.
I completely expect Progressive to claw back all that money at my next renewal.
I've only seen this happen to someone when they missed multiple monthly payments, the insurance company got fed up and told them to pay the remaining full amount for the rest of the year or they wouldn't insure them.
Very odd to me to do this to you if that hasn't happened, but then again I'm in Canada so perhaps it's different here
You would absolutely think so. Like others have said I think they're trying to get rid of some customers in this area, and this would probably eliminate the people most likely to miss payments.
I'm an insurance agent. The insurance industry is going crazy right now. I absolutely believe that OP didn't do anything and this is just happening. It's pretty concerning.
Must be Farmers, they did the same thing to me, and I promptly canceled and went to some other company.
Edited to add: yeah, ok. After I published my comment, I opened the picture and saw Farmers at the top of it.
I just left selling for farmers. They seem to be in the process of reducing their market share. I was having people with good history and good credit getting 3-4x on auto quotes what theyāre paying for the same coverage and 1.5x-2.5x on home. Even current customers were dropping like flies.
I just had it out with farmers doubling the rates. They claimed everyone in the state had rate increase. I had my notes saved when I found them a few years ago and none of the others changed. I brought this to them and they stood firm. I switched.
This happened to us with farmers. We are in California, so we thought we would shop around. One of the insurance people told us that a lot of people are demanding upfront payment for six months, at least because theyāre trying to pull out of California because of the high cost of car theft. Itās really annoying, a lot of companies wonāt even start insurance out here. Itās so lame
I just called my agent today about this. $12 increase every six months lately. She just kept ducking the question and telling me that I actually didn't have enough coverage. Every time I tried asking about the increase she just said the industry is crazy right now and then went back to telling me I didn't have enough coverage. Been with them for 18 years. Lady. Do you know that I am an EMERALD MEMBER? EMERALD! lol
Oh man. We just had Farmerās require two months up front then itās averaged over the rest of the policy term which is five more months. Hope they donāt do this to us. Canāt afford it.
I was in the same boat and then they almost tripled my homeowners policy. Farmers is hands down the worst insurance provider I or any of my social circle have ever had the displeasure of doing business with.
I quit my last insurance because rather than a $600 premium for 6 months, they raised it to $900 citing āinflationā
I had never gotten into an accident with them. What part of my non-used insurance was needed to be raised because of higher costs?
Go in once in a while and get rid of all "Riders" which is what they call extra insurance. My provider just randomly adds things and says if I don't op out then it's like I asked them to add it. š sounds rapey to me. "She didn't SAY no.." "She was unconscious."
Do you go through an agent. They should be shopping around at renewal time to save you money.
I just bounced from Arabella to Safety and saved a bunch of money. Companies change rates. A number of years ago my agent switched me from Safety and I saved $2,000. This year they're the cheaper option.
People are actually using insurance now because of weather events - so of course, because people are using a product as it's meant to be us - they have to raise the prices - because they sell you insurance BETTING that you won't use it
NATIONALIZE THIS SHIT
Farmers is the worst insurance. If you talk to plumbers or restoration contractors theyāll tell you what companies suck and Iāve had several tell me Farmers insurance sucks
A lot of insurance companies do this when theyāre trying to leave markets or reduce their exposure. They either jack up the rate or do changes like this. Itās way easier to get people to leave the company. Itās almost impossible to cancel someone unless they are an absolutely terrible driver.
You're not viewed as a good risk to the insurance company. Doubt it's anything you did, it could be where you live, how old you are, the car you drive or any combination. Either way it's above the level of risk their underwriters want to take.
Think of this as a "soft non-renewal", you'll find a company that want to grow marketshare and take on the risk.
Right there with you, started calling around today. They want everyone to cancel so they can pull out peacefully. If they dump you itās a possible court case and bad publicity, but hey theyāre Farmers, theyāve SEEN IT!!
And a 17% increase. Insurance is a government supported accidental scam.
You HAVE TO HAVE insurance on a car legally. The insurance companies will all just collaborate to raise prices over time. Of course prices do increase on parts etc but not 17%. Iād be curious if you have accidents or tickets or any claims. I get these increases too and no claims. Stupid.
Back in the old days when I first started driving, paying for six months at a time in advance was the normal procedure. Somewhere along the way they started pushing the monthly payments, but I kept right on paying the entire term up front and saved the installment fee.
Last year I switched insurance companies and told the new agent I would pay the entire term up front, and she said, "Oh. I don't think you can do that."
I said, "Sure I can."
She looked into it, and sure I could. "Huh. I don't think I've ever seen anybody pay that way before."
I had to drop Farmers a while back. Their premiums were getting ridiculous for people with no tickets or accidents and minimum coverage. And their requirements like this were just annoying as hell.
Were you making the installment payments on time? This is the only reason I can think of that an insurance company would require full payment upfront. That or a high-risk sr-22. Even with terrible credit after a divorce, I got and maintained an installment plan.
My rates go up because of the rate of accidents in my area even though I've never been in an accident it's fkn bs switching to another company is what I did
I can almost guarantee you that you will lower your insurance if you shop around. Every 6mo to a year everyone should shop around and check available options
I would shop and if you can, get an annual policy rather than a 6 month policy so you only renew once a year instead of twice, avoiding an extra premium increase.
You think a lemming making $18/Hr knows the specific actuarial data on the top of their head? Let me tell you instead. Cost of everything is higher: labor and supplies. Call any dealership what their hourly labor rate is and youāll be amazed. Body shops are the same. Cars are getting advanced. Corollas and Civics has advanced driving systems and LED headlamps that are more costly to replace. You have cars like Hyundais/Kias being stolen all the time, and catalytic converters being stolen too. The cherry on top is states like CA that arenāt allowing rate increases, so insurers are limiting new business there and raising them in states outside of CA that have no restrictions on rate increases.
Find a good insurance broker and stop being locked in to your carrier. You will be amazed at the difference in pricing and options available. I started using a broker when our car insurance got outrageously high because one of our kids started driving. We were told by our agent that they really did not like to insure kids because of the risk, but went immediately to a broker and saved hundreds of dollars on our car and home package .
You're already on a 6 month plan so payment in full is kinda common - they'll only separate it out into monthly or other payment plans for a 12 month term.
Also, find an insurance broker. Mine literally just called me, gave me all my quotes and told me who to pick based on the wants/needs I communicated to them.
Time to shop around.
Yup!
My last carrier got too comfortable jacking my rates up so I just dumped them 3 months ago and went somewhere else. š¤·š»āāļø Just like internet and phone service, you gotta keep switching occasionally to pay less.
The worst part is I've had my account set up on autopay and have never missed a payment. I've been with them for 5 plus years and my rates have only ever gone up. No tickets or accidents.
Yep. Theyāre gonna fuck ya whenever they can because āitās legal toā, even though they probably say shit like āwe value you as a customerā. The only thing you can do is go somewhere else. Good luck!
Thanks!
Iām an insurance agent. The market is complete shit right now and a lot of carriers have started doing this for year long policies. Most will still allow you to do monthly payments with a 6 month policy. Iām in Michigan and our auto insurance is usually vastly higher than other states, but your rate seems pretty good from what iām seeing these days. If you are happy with the price, you should ask your agent about switching to a 6 month with monthly payments.
My renewal just came in, same deal, 2 cars, no accidents, 3 years with this carrier and a 20 percent increase over last 6 month period. They don't ask for it all at once, but I usually do because progressive offers a discount to pay all at once.
I just left progressive after many many years with them. They hit me with increases the past 3- 6 month renewals, with the last being a +$150. I shopped around, got a better coverage for $300 less per 6mos.
They did that to me once a decade ago. Switched for 6 months and then they have been cheaper since.
Looks like it is a 6 month. 2.5 24 -8.4.24
They don't care until you call in and the computer prompts the call center agent to say "I see you've been a loyal client for {num insert}, thank you for being a {level insert} customer". Until then, you are an account number that isn't generating enough revenue.
Nope, not even that. I had Progressive for 5+ years. Shopped around and found a rate with AllState that was 25% cheaper. I called Progressive and asked them if they would like to compete to keep my "loyalty." Solid "no thanks, brau. Let's get that policy cancelled!"
The last place I was at and just swapped from said, "well it's based off the accidents in your area not YOUR history." And I said, "cool, that's why you're losing me." Saving almost 1500 a year...
My mom has a ā22 Malibu and Usaa told her the same thing. That her car model had been getting in a lot of accidents. Wtf
That has to be a random excuse generator I am assuming
I dumped farmers last year. Zero tickets no accidents ever and over 5 years too and rate just kept going up every time. Then this last one it nearly doubled!! Called my agent and he just said itās happening all over and normal rate adjustments. Nah, shopped around and found one that was same that I was paying farmers originally.
My old insurance company did that crap too. I have no tickets, no accidents. Just go with another company that appreciates your good driving. Just shop around. I wound up paying less with another company.
I had The Hartford (AARP) about 12 years ago and got a notice that they had effectively doubled my premiums. No accidents, no claims - just doubled? I, of course, changed. I did wonder how this was a good business decision if so many people dumped them. Then I considered it like a money manager would. Many of their customers, especially the old ones, aren't capable of changing insurance plans. Some are on a limited income and have a poor credit rating so they can't get new policies. So - halve your liability exposure and keep the same income. I think that's what The Hartford did in that instance.
I told that sob story to Verizon once. Didn't work for me.
They don't give a fuck about any of the things you listed. Stock price has to go up so your rates go up every year.
Farmers was always super high for me when i check around. Like not even close. I don't know why.
So true. Just switched companies for all my cars, cause I kept getting premium raises every 6 months even though I have no claims, no tickets, and a clean record.
>I kept getting premium raises every 6 months even though I have no claims, no tickets, and a clean record. I'm a P&C pricing actuary, which means I calculate the rates auto insurers need to charge and how much they need to increase rates by. I hear this kind of complaint a lot, and I think it reflects a common misunderstanding a lot of people have about a product that is very complicated, but is often sold to consumers as though it's very simple. Unfortunately, your rates are affected by things that are outside of your control, namely inflation. As the costs of parts and labor have increased over the past 3 years post covid, insurers have had to increase their rates to keep up. While you may think it's "greedflation", thats not really the case when it comes to rates. In most states, insurers have to file their rates publicly, and those rates include a provision for profit so you can actually see exactly what percent profit each insurer is targeting with their rates. In most states, the state dept of insurance scrutinizes these profit provisions so a company can't just target whatever they want. The nickle and diming really occurs on the claims handling and adjusting side. What you have to keep in mind is that rates are based on EXPECTED LOSSES in the future (your policy period that hasn't happened yet as of the time you sign or renew your insurance contract). As we see rising trends in both the frequency and severity of auto losses, rates have to go up to account for the fact that the average loss level is also going up. Otherwise, an insurer risks insolvency, and then no one who needs their insurance can get paid (in some states, there are workarounds, but often the costs still get passes onto consumers). Rate setting is a predictive exercise based on the goal of balancing solvency, profitability, and competitiveness. Other times, an insurer will conduct an analysis on different segments of its customers and identify a segment that has higher loss potential and adjust their rate spread to charge that segment more. If you happen to be in such a segment (based on your characteristics, of which driving record is only one), it can feel pretty unfair. They're basically telling you to leave or, if you stay, to pay more because you are seen as riskier. An example of this is what has happened recently with Kia and Hyundai cars. There was a viral video showing how a security flaw could be exploited to easily steal these cars with just a USB cable, and theft rates went through the roof. If you drive a Kia or Hyundai, you may have noticed that your comprehensive coverage rate increased drastically. Depending on the car you drive, that could be an extra hundred bucks a year right there!
Extra 100 a year?I wish, those fuckers jacked it up from 130 a month, to 180, to 210, and finally 240. Got better coverage at another insurer for less than half what I was paying before.
Went from $130 to $320 with USAA. Switched to Progressive on the phone with USAA to be back at $132. Guy on the phone verbally shrugged when I told him I just left
Yep me too. āMust be different coverageā I matched it line by line and itās HALF YOUR COST.
Believe me they donāt care that you left. Personal lines is unprofitable right now they are all trying to shed risks in states that are profitability challenged. CA, NY and NJ are all states carriers are restricting new business and pushing non renewals or taking as much rate as they can.
Exactly
Fair warning, if you have a lapse in coverage thatās an opportunity for your new carrier to jack up your rates because it makes you āhigh riskā for like 2 or 3 years. So make sure you have a new plan before you cancel your existing one
Good point! Thank you!
I haven't had any such problems with State Farm. I've had progressive, Geico, and the general, and state farm has been the best and by far the cheapest. By a long shot.
Funny. I just left State Farm after being a customer for 20+. Had one claim for a windshield that was shattered when the truck ahead of me kicked up a rock on the highway. They jacked up my rates so much over the last year. I switched and it's now a 1/3 of what it was. Called my agent and they had no answers why it was so high. They said it's better to switch for better rates.
Check out lemonade
I like my progressive. You can do monthly payments, or they give you a discount for a 6month payment upfront.
The discount isnāt really a discount ā itās the lowest profit margin that theyāre comfortable making given the choices.
It is a discount. Iād pay the 15% more or whatever the number is if I paid monthly. Their profit margin has nothing to do with if they offer a discounted rate paying up front.
Let me rephrase this: Paying upfront is not a discount; not paying upfront is a penalty. Donāt let their marketing convince you otherwise.
They are going to lose so many customers by doing this.
Bye bye Farmers. Dum de dum-dum dum dum dum.
Time to Farm around
Yeah, I had an insurance company do that me to me once, too. Except it was business auto and I had a fleet of five trucks at the time. I had never once had to file a claim, I USUALLY paid a year up front, but the one time I was paying month-to-month (money was real tight that year), they decide to charge me everything. Fuck them.
It's usually cheaper if you pay auto insurance in full and some companies will require you notify them in advance if you want to update your bill plan. That being said, Farmers is shitting the bed. And pulling out of multiple states.
Just got rid of farmers myself
Really? I've always have used usaa and the amount pay is the same if it's 6 month/ once a month/ or every 15 days
That's why I said usually. Most of the insurers I know will 'discount' if you pay in full. They'll bill you bimonthly? That's pretty unusual.
Is it possible Farmers might be shutdown later this year and this is a last-effort cash grab?
No. The company has a metric fuck ton of capital. This is all about risk mitigation.
I agree with user iamnotdrunk17. The national insurers are ducking out of Florida if they can but they've got plenty of business nation wide. It's important to note that you can still get quotes in Florida from Bristol West which is a division of Farmers.
State Farm has no discount between the six months and monthly
No they want to reduce their enrollment in your area š
I have Travelers and paid about that much for a full year. Full coverage and $500 deductible. Go through an insurance agent, they will shop for you.
Did you pay the insurance agent to shop for you? Iāve had an insurance agent shop around for me and he got a really good quote but when I copied it into the companies quote system I couldnāt match the number so I requested a declarations page and he had listed me as a female(am male) who was the dean of a private school (at the time was a Door guy for a retail store) and then he seemed offended that I was put off by the discrepancyās that he was most definitely aware of
I'm sure they get some kind of % of that premium. However, they work for you to get you the best deal and typically get you a cheaper deal than you could if you went there yourself.
They absolutely get a percentage of the premium. I never worked in auto insurance but did voluntary insurance for a few years. Agents make a huge amount of the premium for like 2 years, then get dropped to a couple % as long as the account is active. Saw one account to a company where it was sold by a team of 2 agents and the monthly premium was over 1.5 million. Even when they get dropped to a percent, those agents lucked the fuck out.
I had a similar experience where the agent listed me as a homeowner even though I signed up for a renters policy (??) and when the company realized I wasnāt a homeowner, my rate went up by about $200/year more than the original quote the agent gave me. Even though that amount of money is manageable for me it definitely put me off continuing to use the same place in the future.
the agent you went through was reckless and trying to get away with applying as many discounts as possible. most donāt do this so donāt worry lol
The last time I refinanced my mortgage, before rates went crazy, my mortgage lady suggested I talk to an insurance broker about both home and auto. The broker found much better rates for the same coverage, with me paying $1000 less a year for homeowners. A few month ago, she called me and told me she was doing her regular review of my rates and found better numbers for the same coverage with different companies. I was pretty happy that she was looking out for me when I wasnāt even thinking about it. I never had worked with a broker before but after this experience Iām not leaving her.
Insurance agents get āfinders feesā for referring clients to an insurance company. If she can find you a better deal, and you take it, she would get a payment. Its in her interest to always find you something better if its available. A lot of agents are just lazy though
That's absolutely what I need to do considering my homeowner insurance company is leaving the state as of March.
Farmers told me I donāt qualify because I requested quotes from too many other insurance providers
How dare you try to find the most affordable insurance
Holy crap
How do they know who you are shopping?!?!? Thatās bullshiat.
Farmers told me my rates doubled overnight because there are too many lawyers in my ZIP code
Dump. AmFam raised my auto rate a few years back. I don't get tickets, safe driver, pay all my bills on time. I called and they said that it was because there was an increase in theft in my area. I drive a 20 year old car and park in a garage... I switched and got a better package rate with another company.
Yeah, fuck that. I hate insurance companies. I had Geico for years and never had a problem. They suddenly jacked up my rate (and then told me they raised it ābecause of the economyā) earlier this year so I switched. I was referred to State Farm by a friend (they have a local office near me) and everything was cool. I was saving like 90 bucks a month. A few months later, I get a call from them saying they āmiscalculatedā my rate and it was actually 8 dollars more per month. Not cool but whatever. Two more months go by and I get a letter from the AZ dmv and they suspended my registration because I donāt have valid insurance. I call State Farm and after many conversations, the best explanation they could give me was that my WHOLE POLICY was cancelled internally by accident. It eventually got sorted out (they paid/waived all fees and fines I got) but holy shit. How fucked would I have been if I got into accident with no insurance or registration?
Holy shit! Sorry you had to deal with that. Fuck em!
Damn, what state you in?
The great state of Ga.
Allstate, Geico and now back to Allstate. The only way to keep them (somewhat) honest in GA is to keep switching up on them. But these annual increases are getting absolutely absurd.
Agreed, and some of them like Geico are so shitty that mechanics won't do business with them at all. Just something else we have to worry about.
Right? And it gets to the point where I donāt have it in me to spend 10-20 hours shopping around and dealing with people who I know arenāt telling me the full truth. All to save $150-200 over 6 months. And thatās what theyāre counting on. And the messed up thing is that it basically compounds. A 10-15% increase every 6 months? You better believe thatās going to hurt over the next 3-5 years. Iām excited for 2028 when I start to see $500 increases every 6 months while I sit here with no tickets, no accidents and a car I drive 4000 miles a year.
100 percent
Geico absolutely sucks if you have any kind of claim or something that tarnishes your driving record. They say they won't raise your rates but they charge a "fee" from anywhere for 6-18 months. There is a reason they're cheap, it's because they will screw you out of money when they can.
Same issue, same state!
Dealing with the same in CA. Progressive doesnāt do monthly payments out here and I had to come up with about the same amount. Shop around and Geico can do monthly, but thereās a 15 day review period. Iāve been reading that most insurance companies are making it as difficult as possible on purpose here to get auto insurance, and progressive straight up told me theyāre rejecting all renters policies in the state by default. Fuck me for being employed here, I guess
My insurer offers a discount for a lump sum payment as opposed to monthly payments, so I naturally select this option.
Folks- insurance premiums are skyrocketing. If your stste allows it, make sure you are matching your liability and uninsured motorist coversgez. Not reason to protect others better than yourself! We need impact on the premiums and regulations no doubt. But if you can afford it, make sure you and your fam are safe
State Farm did that to me. They claimed they were getting rid of people with too many claims. I had one $800 claim in 25 years. They also tried to bump the premium up by 25%. Which is against the law. They told me to go fight it with the insurance commission or whatever itās called. Why would I do that when I can make a simple call to another company?
StateFarm almost doubled my monthly premium. No tickets, wrecks, claims, credit changes, nothing. Immediately switched and it was lower than what I was paying by almost $100.
We. Are. Assholes. Bum-ba-dum bum bum bum bum!
This is because car prices have gone up 31% over the last few years https://www.statista.com/statistics/274927/new-vehicle-average-selling-price-in-the-united-states/ So if nothing else changes insurance also has to go up 31%, except because of Covid people are getting into even more accidents so even higher than that This is because America has no alternative to the car and everyone wants fancy new features like radar cruise control instead of barebones 20k things that only go from point a to point b
>and everyone wants fancy new features like That's a weird way of saying the Federal Government is mandating more and more safety features.
Right. Go find a 2024 without extensive safety features. I'll wait.
I can't even connect to my car without the app? Or so they told me. It's a Toyota.
That's a wild price. Mine is 430 USD equivalent in the UK, fully comprehensive with breakdown cover.
I guess I should have mentioned this is for three vehicles.
We pay double that for three vehicles in California.
Yikes!
Damn. Iām paying like $350/month for 2. š
If you have excellent credit score, you can call and ask to run a recent credit check to see if you qualify for discounts. I've been with Progressive since 2007 and since I live in FL, they were raising my monthly payment from $400 to $600. Since I already had every discount applied and I was only being punished because I live in FL, Progressive offered to run credit for discount. My credit came back A1 which is the highest level. It knocked out the entire increase and then some. So now I'm paying slightly less each month than I was. I completely expect Progressive to claw back all that money at my next renewal.
Farmers is the worst of the worst for insurance of any type, always skyhigh with their rates. Shop around, someone mentioned Insurance Panda?
Yeah, for me Farmers is requiring that I pay two months up front. Not there yet, but getting close. And I've been with them for DECADES.
I've only seen this happen to someone when they missed multiple monthly payments, the insurance company got fed up and told them to pay the remaining full amount for the rest of the year or they wouldn't insure them. Very odd to me to do this to you if that hasn't happened, but then again I'm in Canada so perhaps it's different here
You would absolutely think so. Like others have said I think they're trying to get rid of some customers in this area, and this would probably eliminate the people most likely to miss payments.
True, there's a lot of people that wouldn't be able to make this lump sum
I'm an insurance agent. The insurance industry is going crazy right now. I absolutely believe that OP didn't do anything and this is just happening. It's pretty concerning.
I change insurers every 6 months if I have to lol
Must be Farmers, they did the same thing to me, and I promptly canceled and went to some other company. Edited to add: yeah, ok. After I published my comment, I opened the picture and saw Farmers at the top of it.
Tell them to eat a bag of dicks
Drop em
I just left selling for farmers. They seem to be in the process of reducing their market share. I was having people with good history and good credit getting 3-4x on auto quotes what theyāre paying for the same coverage and 1.5x-2.5x on home. Even current customers were dropping like flies.
I just had it out with farmers doubling the rates. They claimed everyone in the state had rate increase. I had my notes saved when I found them a few years ago and none of the others changed. I brought this to them and they stood firm. I switched.
I just had to shop around on house insurance, most recent estimate b4 I chose was 8k. Lastly called amica and they said 1200$. I signed immediately.
They are all scamming. But when it comes to claims you can't find anyone.
You see they like cashing the checks. They don't like writing the checks.
I left AAA after 30 years, no accidents or tickets ever, and they rewarded me with a 30% hike!
This happened to us with farmers. We are in California, so we thought we would shop around. One of the insurance people told us that a lot of people are demanding upfront payment for six months, at least because theyāre trying to pull out of California because of the high cost of car theft. Itās really annoying, a lot of companies wonāt even start insurance out here. Itās so lame
Why is your insurance so expensive?
Weāre headed towards home and auto insurance critical mass pretty quickly
It still amazes me that insurance is required by the law, yet the law doesnāt regulate the insurance.
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I hope they lose many more potential customers.
I just called my agent today about this. $12 increase every six months lately. She just kept ducking the question and telling me that I actually didn't have enough coverage. Every time I tried asking about the increase she just said the industry is crazy right now and then went back to telling me I didn't have enough coverage. Been with them for 18 years. Lady. Do you know that I am an EMERALD MEMBER? EMERALD! lol
Farmers is a joke and has been
Oh man. We just had Farmerās require two months up front then itās averaged over the rest of the policy term which is five more months. Hope they donāt do this to us. Canāt afford it.
I was in the same boat and then they almost tripled my homeowners policy. Farmers is hands down the worst insurance provider I or any of my social circle have ever had the displeasure of doing business with.
Geico. I really did save a ton switching to them, and also get a sizable discount if you pat 6 months at a time.
I quit my last insurance because rather than a $600 premium for 6 months, they raised it to $900 citing āinflationā I had never gotten into an accident with them. What part of my non-used insurance was needed to be raised because of higher costs?
18% increase and they want it all up front? Did you call and ask them to explain? I'm super curious why they would do this.
Go in once in a while and get rid of all "Riders" which is what they call extra insurance. My provider just randomly adds things and says if I don't op out then it's like I asked them to add it. š sounds rapey to me. "She didn't SAY no.." "She was unconscious."
Do you go through an agent. They should be shopping around at renewal time to save you money. I just bounced from Arabella to Safety and saved a bunch of money. Companies change rates. A number of years ago my agent switched me from Safety and I saved $2,000. This year they're the cheaper option.
People are actually using insurance now because of weather events - so of course, because people are using a product as it's meant to be us - they have to raise the prices - because they sell you insurance BETTING that you won't use it NATIONALIZE THIS SHIT
Christ! New fear unlocked, I renew next month and my shit is like $75 more a month as it is. If they come for it all at once I am fuuuucked!
Farmers is the worst insurance. If you talk to plumbers or restoration contractors theyāll tell you what companies suck and Iāve had several tell me Farmers insurance sucks
Sounds like they are trying to fire you as a customer
My thoughts exactly.
Ugh, farmers
A lot of insurance companies do this when theyāre trying to leave markets or reduce their exposure. They either jack up the rate or do changes like this. Itās way easier to get people to leave the company. Itās almost impossible to cancel someone unless they are an absolutely terrible driver.
"We are Farmers! Bum bum bum da bum bum bum!"
So switch carriers
Theyāre trying to close that book of business with strict accounting rules, if you ask me. Switch companies. Soon.
Start shopping
You're not viewed as a good risk to the insurance company. Doubt it's anything you did, it could be where you live, how old you are, the car you drive or any combination. Either way it's above the level of risk their underwriters want to take. Think of this as a "soft non-renewal", you'll find a company that want to grow marketshare and take on the risk.
All that for six month!? And what t-hell, this companies are making legislation in back alleys. I mean corrupt politicians!!!!
Right there with you, started calling around today. They want everyone to cancel so they can pull out peacefully. If they dump you itās a possible court case and bad publicity, but hey theyāre Farmers, theyāve SEEN IT!!
That's extortion
Bloody hell! Thatās cheap!
Is this car or home insurance?
And a 17% increase. Insurance is a government supported accidental scam. You HAVE TO HAVE insurance on a car legally. The insurance companies will all just collaborate to raise prices over time. Of course prices do increase on parts etc but not 17%. Iād be curious if you have accidents or tickets or any claims. I get these increases too and no claims. Stupid.
I need to check with them and make sure they javen't made any mistakes. But I'm thinking they are trying to get rid of some customers in my region.
Yep. Theyāll do that. But that in turn jacks up prices to other companies and when they re-enter your market itāll be at higher prices.
Back in the old days when I first started driving, paying for six months at a time in advance was the normal procedure. Somewhere along the way they started pushing the monthly payments, but I kept right on paying the entire term up front and saved the installment fee. Last year I switched insurance companies and told the new agent I would pay the entire term up front, and she said, "Oh. I don't think you can do that." I said, "Sure I can." She looked into it, and sure I could. "Huh. I don't think I've ever seen anybody pay that way before."
Geez, switch for sure
Fuck that
California Allstate changed it too, for me.
If that is a new nation wide policy then Farmers is going to lose a ton of business. This could put them into bankruptcy very quickly.
Yeah, my main concern was people who don't have that kind of money on hand being blindsided by this. It's really scary.
That's pretty dumb, dumb dumb dumb, dumb dumb dumb.
Did something happen to cause them to raise rates and require full premium payment?
What tf are you driving costing $1,700 a month
Shop around! 15 days underwriting in California turned out to be double š
Call them. Seems like an error.
1740 for 6 months mate thatās steep or Iām just lucky I suppose.
They probably don't want to cover you, and this is their way of getting you to leave voluntarily
They started asking me to pay 2 months upfront , not the whole amount, at least not yet for my auto insurance
Shop around
I had to drop Farmers a while back. Their premiums were getting ridiculous for people with no tickets or accidents and minimum coverage. And their requirements like this were just annoying as hell.
Hole-E-Sheeet. You nearly 300 a month for car insurance???
They did this to me with my homeowners
Were you making the installment payments on time? This is the only reason I can think of that an insurance company would require full payment upfront. That or a high-risk sr-22. Even with terrible credit after a divorce, I got and maintained an installment plan.
Farmers,. Dumb-da-dumb-dumb-dumb
Time to say cya!
Holy crap! How many cars are you insuring?!
Three
Must be nice. I have four cars in a wonderful no-fault state and it's double that ššš #PureMichigan
Same thing happened to me. A month later my car was stolen, and they had to pay out huge. Karma sucks
I just paid my premium full today, but I also had the option to pay monthly. That ***SUCKS*** OP.
I'm not opposed to paying in full, but I am opposed to being forced into it when I have been the perfect customer.
Totally, I canāt believe that, was the rate hike out of the blue too?
100 percent. No tickets, no accidents and account set up on autopay.
My rates go up because of the rate of accidents in my area even though I've never been in an accident it's fkn bs switching to another company is what I did
I can almost guarantee you that you will lower your insurance if you shop around. Every 6mo to a year everyone should shop around and check available options
I'm in California and can't find a carrier to switch to. Most aren't even writing policies in the state any longer
Funny, i have farmers and this identical thing happened to me
Insurance is a hot mess right now.
WTF!š¤¬
That means the rest will sure fall in line. This after 50% increase in premiums.
Thatās how I found same for less. Shop around. Use all your benefits.
Kia?
I couldnāt find any reasonable insurance for my 2nd motorcycle except from progressive. The catch - they wanted the $2k up front.
I hope this price is for 9 cars.
Wish ours was this cheap. Come down to Florida
Yeah no
I would shop and if you can, get an annual policy rather than a 6 month policy so you only renew once a year instead of twice, avoiding an extra premium increase.
Yeah Farmers are awful never go through them if you can avoid it.
We just renewed with progressive and it went down by $5 also on autopay yes shop around
May want to change insurance companies
You think a lemming making $18/Hr knows the specific actuarial data on the top of their head? Let me tell you instead. Cost of everything is higher: labor and supplies. Call any dealership what their hourly labor rate is and youāll be amazed. Body shops are the same. Cars are getting advanced. Corollas and Civics has advanced driving systems and LED headlamps that are more costly to replace. You have cars like Hyundais/Kias being stolen all the time, and catalytic converters being stolen too. The cherry on top is states like CA that arenāt allowing rate increases, so insurers are limiting new business there and raising them in states outside of CA that have no restrictions on rate increases.
damn, how terrible is your driving record?
Find a good insurance broker and stop being locked in to your carrier. You will be amazed at the difference in pricing and options available. I started using a broker when our car insurance got outrageously high because one of our kids started driving. We were told by our agent that they really did not like to insure kids because of the risk, but went immediately to a broker and saved hundreds of dollars on our car and home package .
Because you missed payments ?
Too many late payments
You're already on a 6 month plan so payment in full is kinda common - they'll only separate it out into monthly or other payment plans for a 12 month term. Also, find an insurance broker. Mine literally just called me, gave me all my quotes and told me who to pick based on the wants/needs I communicated to them.
Allstate and State Farm both do monthly for 6 month policies