State Farm, January 19: $936 + $884 = $1820 for six months of car insurance.
State Farm, July 20: $1049 + $1001 = $2050 for six months of insurance.
That’s a 12.6 percent increase in half a year. If we weren’t assured that we live in an inflation-free economy, we would call that “25 percent/year inflation”.
(It’s the same two cars and, ordinarily, they would be worth less every six months. Thus, the rate of increase is actually higher than 25 percent (but it is not “inflation”).)
Used cars went down 10%. 12.6-10= 2.6. Inflation target achieved. The home equity in the country is growing a lot faster than the debt & there’s a line of immigrants waiting to take on mortgage debt.
Life risks grow faster then official inflation rate. I am sur e that insurance companies prorate forward risks of living without Dr. Jill Biden guiding us towards XXII century.
Prices too high? Then maybe you should vote for Kamala! She has promised to fight for lower prices (but has shown no plan) once she gets elected (because she hasn’t for the last 4 years, but can’t right now)!
Maybe time to shop around.
Also, uninsured motorist coverage is not too useful in Florida. It doesn’t pay for any property damage, only limited medical costs. If you and your family have good medical insurance, you might consider declining it. The only thing it covers of some small value is passengers in your car.
Much of what you are paying for is liability (which isn’t related to the value of your property).
I asked ChatGPT about the level at which insurance companies are regulated, and it said that Ron is to blame.
Bruin: Too true! Fortunately, relief is near. Kamala Harris says “when I am president, it will be my day-one priority to fight to bring down prices.” ( https://www.npr.org/2024/08/09/nx-s1-5055895/harris-is-signaling-her-campaigns-priorities-the-economy-could-be-key-for-voters ) So I assume that she will call up State Farm on January 20 or 21, 2025 and tell them to lower the rate for our two cars.
My State Farm premium, State minimums, no comprehensive, went from $175 to $195 in six months. No explanation besides, “everything is more expensive.” Adíos State Farm.
Progressive just increased my rate the exact same amount 12% this month, for a six month policy w/ full coverage (excluding UM) for an ’01 Ford and an ’08 Honda in FL. Total is $850 for six month (if paid in full).
Looks like auto and home insurance price hike does not depend on state, car/home age or insurance companies. I believe that hike drivers are high replacement costs and the fact that insurance industry employees, except maybe certified top actuaries/owners, are not paid that well to begin with and that rising costs reduce their insensitive to work to the level when their salary needs to be increased to keep business running.