Outrageous auto insurance premiums

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    The Frumguy

    I just got an invoice form my insurer (GEICO) for 6 months. The premium was over $600 more than one year ago! I have no violations for over 5 years, no points on my license and no accidents.
    Anyone else in the Coffee Room have a similar experience? What can be done?


    I’ve been with geico for well over 15 years and the same story, I switched carriers and got a better rate than what I was paying now (but it did make me lose my accident forgiveness). In any case, ALL insurance carriers are raising prices significantly due to increase of repair costs as well as “intensity and frequency” of lawsuits, just geico is raising it the worst. There is no point to be loyal to any one isurance carrier (unless they offer accident forgiveness) since they always give better rates to new customers vs old customers, the consensus on reddit insurance is to switch carriers every 3 years.

    Avram in MD

    The Frumguy,

    “What can be done?”

    Forbid your kids from getting drivers licenses.


    Switch insurance companies.

    Dr. Pepper

    I deal with insurance but not on the casualty side. (I can share my experience with you but from a consumers’ point of view and not the insurers’.)

    There are things that insurers check in your personal life / background that may not appear to have anything to do with your driving but show if you’re a responsible person or not. (For example they may give better rates to a teen that’s a good student and raise the rates if he/she doesn’t keep up the good grades.)

    With that being said it may be worth giving them a call to see if they can shed some light. They may also be able to give you a more competitive rate or offer you a discount if you take a defensive driving course.

    Our premiums started creeping up as well- I attributed it to the price of used vehicles shooting upwards. (They also look heavily at your ZIP code, is there an area in your ZIP code with a high rate of accidents?)

    When we added a teen driver the premiums more than doubled. We called an agent and got a quote that (with our new teen driver) was less than we were paying with GEICO before we added the teen driver so we switched.

    Hope this helps.


    My GEICO policy renewed June 18th. It went up a total of $46 on two vehicles.
    Then again, I live in a small CT town and both cars are garaged. The increase was less than the rate of inflation

    ☕️coffee addict


    I’m going to parrot ujm

    I had geico and I switched 6 months ago and I’m paying less and I have better service


    I had so much pleasure a few years when I called Geico to cancel my insurance because I found a better rate somewhere else. I told the operator “I have some great news! I just save over 15% by switching out of Geico!”

    It could be that I was the only one in the conversation that was amused.


    Average auto insurance rates in the Northeast/Mid-Atlantic states increased roughly 25% from 2022/2023 according to state regulators. In general, the underwriting process works on the basis of overall loss/payout experience in each jurisdiction (rates are approved on a state by state basis) with certain formula driven adders/reductions for individual risk factors. Cars that are “garaged” or not driven to work (typically 15 miles each way) will have much lower rates than average just as adding a teen-age driver or multiple claims will ratchet up rates considerably. As noted above, drivers w/o any claims will still find premiums spiking. Changing insurance companies might save several hundred dollars but if you’ve had really good experience with your current company, it might be worth paying up for the quality of service and predictability.

    The Frumguy

    Who did you switch to?


    Wondering if I have teen drivers who are mostly in oot Yeshiva dorm but legaly live in my house do I have to put them on policy?
    I am asking this in a legal/halachic sense and also what happens if I didn’t (which is the case so far) what will happen if ch”v an accident?


    The Frumguy: Check Costco’s auto insurance. It is through CONNECT, a division of American Family Insurance.

    Dr. Pepper


    When you purchase an insurance policy you’re paying the insurance company to expose themselves to the risk being insured instead of being exposed yourself.

    If your policy requires you to add children regardless of whether they’re home most of the time or not and you decide not to then it’s stealing since you’re exposing them to a risk that you’re not paying for.

    (If the kid NEVER drives then it still may be violating your agreement with them but a Rov might say that it’s not stealing. Similarly- if you’re willing to take the risk and cover all damages on your own, without filing a claim, then a Rov might say that it’s not stealing.)

    You’re best off call them and being upfront with the living arrangements.

    The company we use allows us to have children specifically excluded from the policy while they are away from home.

    If the company expects them to be added and you don’t then they won’t cover an accident. If you somehow hide who the driver was and file a claim then you’re stealing.


    Supposedly certain zip codes have recently had their premiums increased because of the jump in car crashes due to new people moving in…


    We use Travelers. They offer a good discount if you have multiple policies with them.

    Shimon Nodel

    Here’s a little secret. If you are able to get TLC license plates for your car, and you get a TLC driver license (tlc is for those who drive car service or uber) then you will be paying much less for insurance. You wouldn’t be buying from the regular companies like geico. You need to have special TLC insurance from select companies, but the highest they charge for anyone regardless of factors is $300 per month and it doesn’t go up from there. I used an online company called inshur.

    The last I heard is that the city isn’t issuing new tlc plates anymore except for fully electric vehicles, but I haven’t checked recently. It could be worth it to get a tesla just for this

    Shimon Nodel

    I forgot to mention that it be illegal for anyone without a tlc license to drive your car. You have to be 19 to get one


    Next time you see a plaintiffs attorney make sure to thank him because he is the proximate cause of all of this.

    Ctrl Alt Del

    GEICO sent us a letter a short while back that they applied to the state insurance commissioner for permission to raise rates 23%. Looks like they got it. I will also be switching away from them.


    Shimon: You can easily find insurance for less than $300/month without TLC.


    Switch to a motorcycle or move out of NYC its cheaper


    Ironically, auto insurance rates in Manhattan are half the cost of in Brooklyn. Brooklyn suffers from a lot of fraud. Like the Russians who stage an “accident” to collect medical.

    Shimon Nodel

    True, $300 is alright a lot. But some people can’t get any quotes under $600


    If the government requires drivers to have insurance, then they need to reign in the predatory policies providers use. There’s no reason why someone should pay 600 a month, unless they have a DUI or multiple serious accidents. Alternatively, if the government is forcing you to have it, they should provide some sort of safety net insurance, perhaps with monitoring devices, similar to Medicaid.


    > If the government requires drivers to have insurance, then they need to reign in the predatory policies providers use.

    all they need is to provide a market. If there are competing companies, they’ll provide a competitive rate. If you think, all companies are over-charging, open your own insurance company, charge less and become rich quick. It is that simple.

    It is possible that your state puts a lot of requirements on the insurance and also forbids “discrimination”, so the company is not able to provide appropriate rate.

    Also, with inflation, all prices went up, and maybe people went meshugane from inflation, so insurance rates will go up accordingly. When you read that inflation “decreased” – it means further increases will be smaller, nobody gives you previous increases back.


    you can also find yourself an agent and put all your insurances – home, business, under the same person. That will give him an incentive to give you a better rate. If you do not need home or business insurance because you do not have those, then solve that problem first.

    Amil Zola

    Insurance fees are ultimately determined by your state agency that regulates said fees. Complain to those people, your tax dollars pay their salaries!


    The filed rates are based on actuarial data, fact one: torts are totally out of hand with billboards, radio, tv, print ads for accident lawyers, fact two: cost of auto repairs are thru the roof with on board computers, airbags etc, fact three: fraud is off the charts with fake medical treatment, sham clinics etc.
    Want to do something about the high cost of insurance push for tort reform.


    there is also a “right to repair” issue in some states: whether independent shops can read onboard diagnostics. If not, all repairs are done by the monopolists at higher price.

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