My Car Insurance Keeps Going Up

[rfuerst911sc]

Pretty simple . Insurance is a for profit business . You have X amount of dollars coming in and Y amount of dollars going out . When Y exceeds X you need to adjust . The easiest way to adjust is to increase X .

Shopping around for insurance can save you $$$ short term but no insurance company is immune to rate adjustments . That's why customer loyalty unfortunately has minimal impact on keeping rates low or lower .

[KFC911]

You're going to have to shop around as they are all jacking up rates on both houses and cars. It varies by state, there is no "one size fits all", some will bundle and actually save you a bunch (like $500+) on your house, with some it's a marketing gimmick. Insurance companies don't lose .... but you can save some $$$.

[jyl]

As I understand it, during the pandemic driving and hence accidents went down and courts were closed, so auto policies were very profitable, now driving and accidents are back up and repair costs are through the roof and courts are processing personal injury cases, so profits headed down. Insurance companies are raising rates to keep profits up.

I’m not an expert on insurance. Bought some insurance stocks a year ago as a get on rising interest rates and economic slowdown. The first part of the thesis has worked. Typical insurance stock is up nicely in 2022. Now we’ll see if the second part of the thesis works. I actually avoided the auto insurance names because driving was returning. The reinsurance names have done the best.