Nationwide Insurance increase

[UnsungZero_OldTimeAdMan]

Looking at the data, I would guess it was the jump in losses between 2020 and 2022, going up from $160 B to $240 B, which represents an annual increase of 20-25%. Sounds like EV repairs could certainly be a factor as well, inflation likely to blame for some of the increase…maybe someone from the insurance industry is here and can elaborate?

Many of these insurance companies also underwrite policies for commercial real estate, which is a market that is currently in post-COVID turmoil—as businesses downsize their physical footprint and move to a 100% flex desk model. I'd imagine that sharp decline in revenue play a part too.

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[ksurfier]

That’s interesting, wonder who pays the insurance on a vacant building? Maybe owners are defaulting on their payments since income is limited?

 

[ciber1t]

I'm in California and received my bill reflecting a 50% increase. While I'm disappointed with the increase for sure, I'm more disappointed with the lack of communication from Nationwide on the reasons for the increase. I reached out to my Rivan Insurance Advisor, and here is what he shared:


Thank you for reaching out. Given you are in CA, there is some additional context that I think is important here. Nationwide is not alone in these sizeable increases in rate, and just about every insurance carrier will be making very large increases in rate at some point in the next couple months if they have not already since November.

Since 2020, the California Department of Insurance has not approved any sizeable rate increases for personal property & casualty insurance. During that time, insurers began to go deeper and deeper into the red on their loss ratios losing much more on claims than they were getting from premiums. While the rest of country saw 10-15% increases with most renewals, California's auto insurance rates basically stayed the same all things being equal.

As very large insurance companies began to leave the state, and many others halted offering new policies in CA, the department of insurance realized they cannot continue to have an insurance market if insurers leave the market. In turn, they began to approve significant rate increases in the Fall. Insurance carriers (who have almost all been selling insurance at a loss in CA) have lined up to take rate increases one at a time. Nationwide was approved in November to do so as well. When they offered you a policy in March of 2023, there was no indication from the state that the state was going to be allowing these rate increases any time soon, let alone to what degree. All they knew was the rates they were approved to offer.

While these increases are very very hard to stomach, and I do suspect people will be switching to and from Nationwide. While I have had many insureds cancel their policies, I have also had more people calling us to switch to Nationwide in recent months that already took delivery last year due to the increases they are seeing with their current carriers. What I'm getting at is this is much less of a bait and switch situation, and much more of a large market adjustment that will at some point be affecting everyone in CA if they haven't been affected already. If claims costs and the costs of doing business do not stabilize, I suspect rates will continue to increase across the country. Insurance companies have had record breaking underwriting losses over the last few years and will not be able to stay in business if adjustments aren't made.

 

[UnsungZero_OldTimeAdMan]

I'm in California and received my bill reflecting a 50% increase. While I'm disappointed with the increase for sure, I'm more disappointed with the lack of communication from Nationwide on the reasons for the increase. I reached out to my Rivan Insurance Advisor, and here is what he shared:


Thank you for reaching out. Given you are in CA, there is some additional context that I think is important here. Nationwide is not alone in these sizeable increases in rate, and just about every insurance carrier will be making very large increases in rate at some point in the next couple months if they have not already since November.

Since 2020, the California Department of Insurance has not approved any sizeable rate increases for personal property & casualty insurance. During that time, insurers began to go deeper and deeper into the red on their loss ratios losing much more on claims than they were getting from premiums. While the rest of country saw 10-15% increases with most renewals, California's auto insurance rates basically stayed the same all things being equal.

As very large insurance companies began to leave the state, and many others halted offering new policies in CA, the department of insurance realized they cannot continue to have an insurance market if insurers leave the market. In turn, they began to approve significant rate increases in the Fall. Insurance carriers (who have almost all been selling insurance at a loss in CA) have lined up to take rate increases one at a time. Nationwide was approved in November to do so as well. When they offered you a policy in March of 2023, there was no indication from the state that the state was going to be allowing these rate increases any time soon, let alone to what degree. All they knew was the rates they were approved to offer.

While these increases are very very hard to stomach, and I do suspect people will be switching to and from Nationwide. While I have had many insureds cancel their policies, I have also had more people calling us to switch to Nationwide in recent months that already took delivery last year due to the increases they are seeing with their current carriers. What I'm getting at is this is much less of a bait and switch situation, and much more of a large market adjustment that will at some point be affecting everyone in CA if they haven't been affected already. If claims costs and the costs of doing business do not stabilize, I suspect rates will continue to increase across the country. Insurance companies have had record breaking underwriting losses over the last few years and will not be able to stay in business if adjustments aren't made.

"Sunshine tax" strikes again.

 

[Tony R1S]

Same here with 50% increase on both cars. Had an hour phone call with nationwide to tweak the deductible and find other discounts and was able to get it down to more reasonable 20% increase. My new car ocd has worn off and I'm cool with scoring battle scars that are under the deductible.

 

[EVTrukHog]

Like others, I've seen my Rivian Insurance (Nationwide) increase by 72% since OCT 2022 - just got my third renewal notice. At one time, we were led to believe that the Rivian Insurance program gave an advantage to access to OEM parts and/or replacement vehicle relative to other insurers... does anyone still think that is an advantage to using the Rivian Insurance program?

 

[UnsungZero_OldTimeAdMan]

Like others, I've seen my Rivian Insurance (Nationwide) increase by 72% since OCT 2022 - just got my third renewal notice. At one time, we were led to believe that the Rivian Insurance program gave an advantage to access to OEM parts and/or replacement vehicle relative to other insurers... does anyone still think that is an advantage to using the Rivian Insurance program?

Login to your Nationwide account and check your policy declaration. Plus, unless knock off parts are being made, Rivian parts is the only option by default. And Rivian’s ownership numbers are likely too small for knock off parts to be profitable. The market/supply for salvaged OEM parts is likely very small too. If insurance were to try and force use of salvaged parts for repairs, they’d have a hard time finding it.

 

[EVTrukHog]

Unless knock off parts are being made, Rivian parts is the only option by default. And Rivian’s ownership numbers are likely too small for knock off parts to be profitable. The market/supply for salvaged OEM parts is likely very small too. If insurance were to try and force use of salvaged parts for repairs, they’d have a hard time finding it.

Agreed... the original "selling" point of Rivian insurance was that you would get priority to obtain OEM parts for repairs and/or a new replacement vehicle. If true, this was a significant advantage when production was supply-chain constrained... I'm now wondering if this is still the case? Is there still a shortage of OEM parts or replacement vehicles?

 

[EVTrukHog]

Like others, I've seen my Rivian Insurance (Nationwide) increase by 72% since OCT 2022 - just got my third renewal notice. At one time, we were led to believe that the Rivian Insurance program gave an advantage to access to OEM parts and/or replacement vehicle relative to other insurers... does anyone still think that is an advantage to using the Rivian Insurance program?

Login to your Nationwide account and check your policy declaration. Plus, unless knock off parts are being made, Rivian parts is the only option by default. And Rivian’s ownership numbers are likely too small for knock off parts to be profitable. The market/supply for salvaged OEM parts is likely very small too. If insurance were to try and force use of salvaged parts for repairs, they’d have a hard time finding it.

Agreed... the original "selling" point of Rivian insurance was that you would get priority to obtain OEM parts for repairs and/or a new replacement vehicle. If true, this was a significant advantage when production was supply-chain constrained... I'm now wondering if this is still the case? Is there still a shortage of OEM parts or replacement vehicles?

Well... another six months without any incidents from me and Rivian (Nationwide) insurance just quoted a 14% premium increase for the next 6-month term. This seems more reasonable than the previous increases (up 72% after first 18 mos) but any perceived benefit to using the Rivian insurance services has lost its luster to me. I'm able to save 30% by switching back to my incumbent insurance carrier who can bundle the rest of my fleet and home.

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