I accidentally hit a parked car last year and thus had an at-fault-accident record. The other car had scratches and small dent and I left my insurance info after the accident.
This year farmers insurance going through rewriting and renewal of my car insurance and sent me a new bill of $2.3k premium. Previously was paying around $1.3k. I know I will have insurance rate increase but still shocked at the massive increase. Tried to shop around to see if any insurance will offer a slight lower but all quotes I got are in the $2k range or even higher. I am here looking for advice to see if there is anyway to lower the rate a bit if at all possible?
I am located in northern California for additional info
Car insurance rate increased by $1k bi-annualy after accident
byu/Suspicious_Hold_3430 inInsurance
Posted by Suspicious_Hold_3430
4 Comments
I’m in the same boat. You can take a defensive driving course to bring it down. In my state of Georgia, it’s a 10% discount
All you can do is shop around (assuming you don’t want to make any dramatic change in coverages). Rates have been rising for just about everyone, but especially for those with recent at-fault claims. Like everything else (including the cost of cars and car repairs), insurance has become more expensive over the past few years. You may do better with a local broker (not an agent) who has access to at least a few different carriers.
You may be able to reduce your bill by altering your coverages, raising your deductible, etc., but you want to make sure you understand what you’re giving up in exchange for whatever you save. The lowest possible premium can come back to bite you if you give up coverage you need.
Of course, there are certain things besides shopping around and changing coverage that you might be able to do, like getting a different car, taking driver’s safety courses, etc., but those generally won’t have a huge impact unless you have a “riskier” car or a particularly bad driving history.
Good luck, and if it makes a difference, you are not alone in facing a substantial premium increase.
Guaranteed that the accident isn’t the only cause for the increase. Your rates would’ve increased, probably significantly, even without the accident. You can adjust your coverages/deductible. You can call an independent broker for more quotes.
Ca sucks right now. Ins cos are pulling out of home across the state. That means staff, offices are now doing less work. Agents can only sell auto only not a more profitable bundle. (This sorta applies to every ca driver)
So the mood in ca is that profits are thin. The general rule of thumb is when things are bad you want to reduce risk. Underwriters reduce risk by increasing the impact a single claim has. Reducing discounts for moderate to high risk drivers etc. They also dont want to lose their currently perfect drivers. They may implement rate increase caps for perfect drivers, keep perfect driver discounts the same while reducing discounts for all others.
When times are good. Underwriters will look at market capture. Losing money to get more policies etc. Right now they know people are going to leave, but they want to be profitable.
CA doesn’t suck as bad as MI. Michigan voters passed laws to try to reduce ins costs. It wouldn’t completely apply to ca auto but voters need to address ca homeowners regulations. The meltdown in the ho market plus covid shortages are the cause.