I just got my renewal notice from State Farm, and it jumped from $540/6 months to $788/6 months. That’s a 45% increase, which feels ridiculous!
I get that with everything going on since COVID, insurance companies are losing money and hiking rates to make up for it, but this feels extreme. Especially here in California, where it seems like insurance companies are pulling out left and right.
For reference, I’m a 25-year-old woman in SoCal, driving a 2012 Hyundai Genesis with $25k/$50k bodily injury, $25k property damage, $1k medical payment, and a $500 deductible for both comprehensive and collision. My family has been with State Farm forever (we even have our home insurance with them), so we’ve never shopped around before. This is all new to me.
I checked some quotes online, and Geico was way cheaper, offering the same coverage for $468/6 months. Should I go for it? Or should I call State Farm to see if they can match it? Is Geico a reliable option? This rate increase is stressing me out, so any advice would be appreciated!
I know this isn’t exactly what you’re asking, and the advice on limits is solid, but I just want to add something. I know it’ll bump your premium, but please consider increasing your bodily injury limits. $25k/$50k is very low. If you cause an accident and someone goes to the hospital, that can be used up fast. An accident going over your policy limits will hurt a lot more than the extra cost in premiums.
Just curious, why is it bad if an insurance company makes a profit? Would you feel better if they didn’t make any money? How long do you think that would last before things went south?
You can thank your insurance commissioner for not allowing rate adjustments for years. That’s why companies are pulling out, and the ones still here are raising prices to catch up.