Outrageous Insurance Offer 36% mark up

[PhatDaddy]

My Max Pack R1T is estimated for Feb-Mar 2024. But I was concerned about insurance rates and availability, esp. here in FL. So I contacted the Rivian/Nationwide team and asked them to give me a quote on my two existing Hondas (2017 Ridgeline and 2017 CRV) along with a theoretical Rivian (based on a VIN they selected). I was pleased to find out that despite what I had heard, they would indeed write me a (theoretical) policy in FL. A few weeks later I received my annual insurance renewal for the 2 existing vehicles from The Hartford. 42% increase year over year, with no credit rating changes, tickets or accidents. So I lit Nationwide back up and asked if they would go ahead with the policy for the existing 2 vehicles and allow me to add the R1T when it eventually gets delivered. The Nationwide rate (not including the Rivian) was 33% lower than my existing policy... so now I'm a Nationwide guy. At least for now...

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[SASSquatch]

I understand insurance companies are raising their rates this year but raising my insurance to 36% is beyond me.
it is to me a reflection of corporate greed.
I always have continuous insurance.
Had only one claim (2020 no-fault incident with no injuries) in the past 10 years.
Currently for 3 vehicles, one year policy is $28XX.
Now, I got a letter from Farmer’s (my current insurer) that they are not renewing my policy but instead offering me a new one.
This time, it is for six months for $38XX, almost 4K. That’s 36% increase!
Are the numbers pretty average here in California? I know that there are variables but I haven’t moved nor got remarried or divorced nor have new driver’s or new kids or pets, nothing has charged.
My two other vehicles are 10+ years older so I could just get liabilities instead of comprehensive as what I currently have but men, 36% hike is just too much.
Does anybody have better offers out there?

If you think that is bad, 2 cars, 2 drivers, clean record for 10+ years and Progressive doubled our rate from $2.2K per year to $4.2K per year. Oh - and a credit score north of 800. Their reason was "it's not you, it's the losses we are incurring in your area."

We do not have a Rivian or anything remotely that expensive or fancy on our policy so while I sympathize - I don't sympathize that much.

 

[ohseedee]

it is to me a reflection of corporate greed.

I'm the last person to defend an insurance company, but I'm not sure if this is corporate greed vs the reality of owning a Rivan or similar vehicle. Seeing threads here that a dent on the quarter panel is costing $40K is insane. I personally got into a minor accident (not my fault and the other guy's insurance covered it) and needed a headlight replaced. My insurance company estimated $1,200 to fix. Ended up being $7K! Insurance companies are updating their calculations and I expect this trend to continue. Fixing these cars is insane and the insurance companies need to pass that expense down. Really worried about my future policy renewal...

 

[SASSquatch]

I'm the last person to defend an insurance company, but I'm not sure if this is corporate greed vs the reality of owning a Rivan or similar vehicle. Seeing threads here that a dent on the quarter panel is costing $40K is insane. I personally got into a minor accident (not my fault and the other guy's insurance covered it) and needed a headlight replaced. My insurance company estimated $1,200 to fix. Ended up being $7K! Insurance companies are updating their calculations and I expect this trend to continue. Fixing these cars is insane and the insurance companies need to pass that expense down. Really worried about my future policy renewal...

This exactly. It's Rivians and Teslas that are driving up the cost of insurance most likely everywhere.

Tesla is moving to single piece giga casting of their vehicles which will save them a ton of money from a production standpoint but guess who ends up paying down the road? If you are even in a small accident, you risk the entire car being totaled.

I mean, denting the rear quarter panel and you have to disassemble damn near the entire truck?

OEMS that are starting from a clean sheet design (Rivian/Tesla) are maximizing production for cost savings but not considering how that impacts the repairability of their vehicles. That isn't their problem. We will need to adjust to the new reality of sky high insurance premiums if this trend doesn't change and I don't see it changing any time soon.

 

[AYAYRON]

I understand insurance companies are raising their rates this year but raising my insurance to 36% is beyond me.
it is to me a reflection of corporate greed.
I always have continuous insurance.
Had only one claim (2020 no-fault incident with no injuries) in the past 10 years.
Currently for 3 vehicles, one year policy is $28XX.
Now, I got a letter from Farmer’s (my current insurer) that they are not renewing my policy but instead offering me a new one.
This time, it is for six months for $38XX, almost 4K. That’s 36% increase!
Are the numbers pretty average here in California? I know that there are variables but I haven’t moved nor got remarried or divorced nor have new driver’s or new kids or pets, nothing has charged.
My two other vehicles are 10+ years older so I could just get liabilities instead of comprehensive as what I currently have but men, 36% hike is just too much.
Does anybody have better offers out there?

The state of insurance is hectic, Texas (specifically) Our Homeowners has tripled in the last 5 years, it was $1700 now $5500, we have no claims 800+ credit it's the nature of insurance, you are paying for other peoples claims.

On that note try Costco Connect I switched the cars (left the homes with Traveler's)

Travelers wanted $1100/ year for the wife's 2010 lexus RX and Nationwide wanted $1400 / 6 months for the Rivian (3rd renewal period)

Costco Connect $1000 / both cars 6 months, that saves $1700 a year same coverage.

 

[Thedude]

Reach out to Rivian and see if you can still get the Rivian insurance (Nationwide)? I live in a crappy part of town where our rates went up after we moved here (because of all the uninsured motorists and hit & runs), but my Riv insurance just renewed and is only $431.30 / 6 months (also have the wife's car and our house through them).

This means nothing to the OP though. Insurance threads always end up like this with people posting what they pay as if it somehow helps. If you aren’t neighbors with the OP there is zero valid comparison. Example - between my current address and a house I owned years ago in a different state the insurance cost decreases by $160/month for the exact same driver and vehicle.

 

[ediehl]

Farmers is dropping people in Florida but I have mine through my company and it just increased from 2k to $2400 for 2 cars. In June I received a quote from Rivian and it was 2K so I figured Id just switch to their insurance and when I called in August they said they were no longer offering policies in Florida.
Don't even get me started with home owners insurance. I'm paying around $5700 a year and I have a good deal.

 

[Count Orlok]

Insurance is one thing I don't pick based on the lowest bid.

 

[vordo]

In CA - check Wawanesa which only serves CA. paying 2k for the R1T+ 2017 Tesla S for 6 months.

 

[Salespunk]

All of the major insurance companies are either pulling out of California or jacking rates sky high. The rate increases are across all policies and not just Rivian or even just autos. Home owners, renters, etc are all moving up dramatically.

 

[docwhiz]

I understand insurance companies are raising their rates this year but raising my insurance to 36% is beyond me.
it is to me a reflection of corporate greed.
I always have continuous insurance.
Had only one claim (2020 no-fault incident with no injuries) in the past 10 years.
Currently for 3 vehicles, one year policy is $28XX.
Now, I got a letter from Farmer’s (my current insurer) that they are not renewing my policy but instead offering me a new one.
This time, it is for six months for $38XX, almost 4K. That’s 36% increase!
Are the numbers pretty average here in California? I know that there are variables but I haven’t moved nor got remarried or divorced nor have new driver’s or new kids or pets, nothing has charged.
My two other vehicles are 10+ years older so I could just get liabilities instead of comprehensive as what I currently have but men, 36% hike is just too much.
Does anybody have better offers out there?

It pays to shop around.
Different insurance companies have different pricing models. Get at least 10 bids. You'll find a good one.

 

[mzdds]

I’m switching from Nationwide as they’re dropping homeowners coverage here in South Orange County. I have a quote from SafeCo for $3,080 a year for a 2022 Model S and the 2023 R1S. This premium is with the discount for combined policies.

 

[EVTrukHog]

I think your zip code has as much to do with rates as your personal history. Some of these significant rate increases are messages from the insurance companies that they have too much risk (i.e., too many policies) in a particular geographic area and they are using increases to levelize their exposure.

 

[docwhiz]

Insurance is one thing I don't pick based on the lowest bid.

Why not?
There are no good insurance companies. They will all try to screw you if you make a claim. Your only protection is the contract.

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