A driver was shocked to receive their insurance renewal forms, only to discover their rates had jumped by more than a third despite a perfect driving record and no claims.
Here's what to know
Posting on Reddit's r/insurance forum, the driver described how their latest six-month auto renewal jumped from $1,470 to $2,015. The unexpected increase came despite the original poster saying they had reported no claims, had a clean driving history, and even had a relationship with the insurer dating back to 2012.
The OP explained that they had their auto policy with Farmers, which also carries their home and earthquake insurance. While many insurers offer discounts for customers who "bundle" their policies, having multiple Farmers policies did not appear to have shielded the OP from a drastic price bump.
"Farmers basically wants me to pay an extra $1200 per year," the OP wrote. "It's robbery."
In the comments, many responses focused on the idea that staying with one insurer does not guarantee any pricing break.
"Just shop around," said one commenter. "No reason or benefit to be loyal to a company."
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
The same commenter added that many carriers have been raising auto-insurance rates for reasons unrelated to a particular vehicle or driver record.
Other Redditors advised reaching out to Farmers about the unexpected increase, with one questioning whether perhaps "a discount fell off."
An industry-wide problem
Many replies pointed out that insurance prices have been rising market-wide and the problem has not been unique to Farmers. One person noted that California prices had gone up "across the board."
Another commenter said NJM had raised their premium, too, even after 16 years and a clean record.
One Redditor who also has their insurance with Farmers did some investigating after experiencing a dramatic rate hike of their own. Comparing recent Farmers renewals, they concluded that the biggest changes were in comprehensive, collision, and glass-related costs.
They also found a statement in the fine print saying that "classic farmers plans no longer exist in California" and that a newer Farmers policy was now being offered statewide.
What counts as "expensive"?
One common thread throughout the Reddit discussion was a debate over what exactly counts as "expensive" when it comes to auto insurance rates. Because insurance is regulated state by state, one state can have dramatically different rates than even a neighboring state.
When it came to the OP's auto-insurance rates, Redditors were divided.
"Sounds cheap for Cali for sure," said one. "I pay more than that in Missouri."
"You pay more than $2100 for your auto? Time to shop around," replied another.
Where can I learn more?
These stories look at how insurance customers in California are dealing with steep rate hikes and coverage changes. They focus on actions by Farmers and State Farm, while touching on industry-wide fights over rising premiums and shrinking coverage.
• In California, Farmers won't renew nearly 1,300 policies, leaving homeowners questioning their coverage options.
• In California, State Farm faced serious questions over proposed 22% premium hikes from state officials.
• Across California, residents saw 400% insurance rate hikes as companies dropped coverage altogether.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
