My auto insurance just raised the price 50% overnight. It goes into effect in August. I'm used to companies performing regular reviews and doing slight increases, but this is insane, especially at a time when everything is closed and nobody is driving. I can't fathom how they're justifying a hike like this. Accident risk has to be way down and nothing has changed on my end.
I'm wondering if my company is just being greedy and/or they're out a ton of money because people aren't paying their bills and need to make up for it by raising rates for everyone else.
Have you guys noticed this?!?
My car insurance stayed the same (minus depreciation).
Yes, some companies who are out money will attempt to make it up via their customers. They do it all the time. The only recourse is not to use them.
I suggest you call your insurance company and register a complaint. Of they say, oh well or tough cookies, you might look for a new company. If you do, get another company, make a point to tell your old insurance company why and that you will be telling others not to shop with them. Companies hate losing customers as it means lost money. The way social media works these days, there’s no such thing as “one unhappy customer”. One unhappy customer can quickly equal 10-1000 lost customers or lost potential customers, and bad publicity. And that’s a lot of lost money.
Did you happen to notice if any other policy holders also posted negative reviews about the same thing happening to them?
~
No, I haven’t noticed it yet, but reading your post is cautionary for me and I will now be on the lookout. In my case, retirement coincided with the onset of COVID-19, so almost everything concerning my finances required review and tweaking. My various insurance policies underwent changes, deletions, interruptions, transfers, etc., so it’s a continuing process of seeing final outcomes across the board.
By the way, based on what you wrote, I do believe that your insurance company is being greedy. Did they itemize the factors that support an increased premium?
~
You’ve been pigeon-holed and form-lettered!
Shuhak 