insurance premium increase (Denver: 2015, car insurance, bad credit)

[shark6286]

I just got the renewal notice for my car insurance. I had insurance for 6 months with this company and had no accidents or claims.

The new premium for the next 6 months has increased by 23%. I have about a month to decide whether I accept it for shop elsewhere.

I got the insurance through an insurance broker and asked her why the increase. She said she would check with the insurance company. On the next day she offered me quotes from a different insurance companies with lower premium and the same coverage.There was no mentioning of her talking to my current insurance company and any explanation why the premium was increased that much.

Is it possible the premium was bumped by her in attempt to increase her commision? If I decide to go with a new insurance company then she get a commission for bringing a new client. In both ways she makes money.

Should I call the insurance company directly and ask them why the premium was increased by 23% after 6 months with no accidents or claims?

What would you do?

Thanks

[marioana]

I usually shop online for insurance. All major companies like Allstate, StateFarm, Progressive, Geico have quotes online ...

[ayoitzrimz]

I think insurance brokers are an anachronism at this point. You can get quotes online from the major insurance companies directly in minutes and you can call all the insurance companies by yourself and compare quotes. I would dump the insurance broker and deal with the insurance companies directly to get the best quote I can.

[jwiley]

Rates cannot go up just to give an agent a higher commission, the rates are set by zip code and approved by the insurance commissioners office. Rates are based on claims in each zip code, county, statewide, and nationwide, plus the amount of profit that the insurance companies would like to make.

With the rash of car thefts in the Denver metro area, the hail storms that have hit the last couple of years throughout the eastern part of the state, and other factors many insurance companies are raising their rates. You should shop around for a better deal, but remember in some cases you get what you pay for, cheaper is not better in many cases of insurance.

[Willy702]

Rate increases of 20% arent that unusual, especially if you are new. Plus the big reason your rate can increase is credit, whether its gets worse or the company doesn't pull your credit until after they write the first policy.

[shark6286]

Thank you!

[Jimrob1]

I don't live in Colorado, but saw the thread in passing. That just happened to me in Florida with Allstate. I have always paid my 6 month premiums in full, no claims no nothing. Yet I got a $100 increase this renewal. I had enough of Allstate and now I am with USAA. My insurance with USAA is close to $200 cheaper for the exact same coverage, actually a little more coverage.

I can't say the agent was after a bigger commission. I think the insurance companies themselves are the culprit. I believe they use some type of scoring system, that rates what risk they feel you will be. Of course it benefits them, and is most likely very unfair to you or any of us.

Personally I hope many insurance companies all meet in hell.

I would do a lot of shopping around, and forget the broker, agent what ever for awhile. Word of caution as switching insurance companies has become a way of life, for many of us in this day and age. Due to these constant increases what else can we do.

Be careful with Progressive and Geico also, but especially Progressive. They will give you a teaser rate over the internet that is very appealing. 6 months later there is a huge increase. It may not happen to every policy holder, but many people have complained about that concerning Progressive. After all just where are they going to get all that money, to pay Flo for her assortment of weirdo commercials.


Good luck most of us have all been in the same boat.

[Timmyy]

Originally Posted by Jimrob1

I don't live in Colorado, but saw the thread in passing. That just happened to me in Florida with Allstate. I have always paid my 6 month premiums in full, no claims no nothing. Yet I got a $100 increase this renewal. I had enough of Allstate and now I am with USAA. My insurance with USAA is close to $200 cheaper for the exact same coverage, actually a little more coverage.

I can't say the agent was after a bigger commission. I think the insurance companies themselves are the culprit. I believe they use some type of scoring system, that rates what risk they feel you will be. Of course it benefits them, and is most likely very unfair to you or any of us.

Personally I hope many insurance companies all meet in hell.

I would do a lot of shopping around, and forget the broker, agent what ever for awhile. Word of caution as switching insurance companies has become a way of life, for many of us in this day and age. Due to these constant increases what else can we do.

Be careful with Progressive and Geico also, but especially Progressive. They will give you a teaser rate over the internet that is very appealing. 6 months later there is a huge increase. It may not happen to every policy holder, but many people have complained about that concerning Progressive. After all just where are they going to get all that money, to pay Flo for her assortment of weirdo commercials.


Good luck most of us have all been in the same boat.

When I switched to Geico it was half of what I was paying to State Farm for two cars. That was over a year ago. So far they haven't raised my rates.

[Willy702]

Originally Posted by Jimrob1

I don't live in Colorado, but saw the thread in passing. That just happened to me in Florida with Allstate. I have always paid my 6 month premiums in full, no claims no nothing. Yet I got a $100 increase this renewal. I had enough of Allstate and now I am with USAA. My insurance with USAA is close to $200 cheaper for the exact same coverage, actually a little more coverage.

I can't say the agent was after a bigger commission. I think the insurance companies themselves are the culprit. I believe they use some type of scoring system, that rates what risk they feel you will be. Of course it benefits them, and is most likely very unfair to you or any of us.

Personally I hope many insurance companies all meet in hell.

I would do a lot of shopping around, and forget the broker, agent what ever for awhile. Word of caution as switching insurance companies has become a way of life, for many of us in this day and age. Due to these constant increases what else can we do.

Be careful with Progressive and Geico also, but especially Progressive. They will give you a teaser rate over the internet that is very appealing. 6 months later there is a huge increase. It may not happen to every policy holder, but many people have complained about that concerning Progressive. After all just where are they going to get all that money, to pay Flo for her assortment of weirdo commercials.


Good luck most of us have all been in the same boat.

Its not a "teaser" rate, its a neutral rate. The big online companies do not pull your credit unless you admit to having bad credit or a bad driving record during your application. They take your word for it, but after you sign up they pull both. If it turns out your credit is below average or you had points you didnt disclose you get a really high rate at next renewal. They figure you would get a high rate with most others anyways so they are betting you won't switch at that point.

Switching often is acceptable, but few do it so the companies will just raise rates every year until the fall below a threshold of market share they want. Once that happens they will suddenly get competitive and that cheap policy you thought you had will no longer be the cheapest.

[Sculptor]

23% doesn't tell us much, if your premium was $10 a month then it's only going to $12.30 now, shop around, I'm with Statefarm, my premium is $98.35 for 6 months, of course I don't have comprehensive or a car loan, but my premiums haven't really gone up in years;

Total amount due:
$98.35Due date:
10/21/2015Coverage period:
10/21/2015 - 04/21/2016Notice type:
Auto Renewal