20 Percent Increase on 612 Insurance Premium

I too recently saw a big spike in rates (CA also). I called and depending on who you talk to, you get a variety of answers (none the same). SO, it appears that they just raised rates to pay for the fires and pad for other exposure but don't want to tell the real truth about it.

 

Is the increase in the physical damage (Comprehensive and Collision premiums) or on the Bodily Injury and Property Damage Premiums or both?

If it is the Bodily Injury and Property Damage premiums then your company has experienced higher litigation costs in your geographical area or in CA in general.

If it is only the physical damage premiums then the increase is due to an increase in the repair costs your particular company has experienced in your geographic area. I really doubt it is model specific as I am not sure the insurance company’s individual statistics are creditable for a small sample size for a specific model let alone for a low volume car manufacturer.

If it is an across the board increase then your insurance carrier believes their premiums have been generally underpriced in all areas of CA. In CA insurance companies must justify statistically rate increases to the department of insurance (DOI) who reviews and approves the rate increase.

Despite what most folks believe insurance companies don’t like increasing their premiums as auto insurance is sooooo price sensitive. It is not possible to watch TV, go on the internet or listen to the radio without seeing or hearing at least a half dozen auto insurance commercials in a half hour time frame. Just in your case w/o a big $ increase you shopped your auto insurance and got alternate price quotations.

That said insurance companies willing to provide coverage on exotic or high valued autos is much more limited. The specialty companies providing exotic auto insurance are usually much more cognizant of increases in repair costs as there are so relative few repair facilities capable of working on these type of vehicles.

 

Lee
Two thoughts 1) Get quotes on the largest deductible you want to afford for both Comprehensive and Collision - keep in mind you are likely not going to put in a claim for smaller damage amounts so at least get the rate/premium credit for actions you are currently employing.
2) Make sure that you have "collision deductible wiver" on your uninsured/underinsured motorist coverage - not very expensive and important if you elect a larger comprehensive/collision deductible.
My personal thought is that repair costs have gone up significantly for body shops in the Santa Barbara/Ventura area. My wife receintly had an accident and the repair costs for our Pano were much higher than I had expected from a few years ago.

 

John, See my prior post #3. The insurance companies must submit a rate change/increase to the Department of Insurance (DOI) for approval and must backup the reasons for that rate change and justify both up and down rate changes with some kind of creditable loss and premium figures. I am not an actuary so have particulars on actually what is required to request and get approval for rate changes from the DOI but I have many discussions with insurance company executive management on rate changes over my career as an insurance broker.

 

Thank you for the information. Fchat is always a useful resource. So may people with great knowledge.

 

Our roads are not great in the South Bay. The drive to the office is on 280/680 and there are edges that are at least 3" tall. There are some places with surprise potholes as well. The edges I am stuck with the potholes I can learn where they are and avoid.

I was up in Alameda County last week (Pleasanton) and the roads there are significantly better.

 

While I don’t drive my 612 so much but definitely more that 1k per year so I have no mileage limitation. Since your policy has relatively very little over the road exposure they is not so much premium differential in the deductibles.