Our Auto Insurance Premiums Are Killing Me!

I received our six-month auto insurnace renewal yesterday. The premium is going up 9.79%! We added our oldest son last March. Our rates basically doubled. They didn’t change much at our July 2012 renewal. Yesterday’s renewal came as quite a shock. We haven’t had any issues. So, I called our provider yesterday and one of the first things he told me was, “I know rates have gone up in Texas.”

This is the breakdown of our rate increase (click on the graphic to see a larger view):

This is what irks me about insurance. If you purchase insurance and get into an accident or have to file a claim, they jack up your rates. Then, if you don’t use your insurance, they jack up your rate via rate increases at the state level.

So why did the rates go up in Texas? I did a little research and found two reasons:

1. Cost increases at auto body shops.


2. High numbers of uninsured drivers.

The second one really bothers me. Responsible people have to pay increased insurance rates to compensate for the lowlifes (yes, if you are driving without car insurance, you are a lowlife).

I put in an email to our agent to see if they can shop around. I’m not hopeful.

Oh, and get this: in about 6 months we’ll have teen driver number 2. I guess we’ll stop saving for retirement so we can pay for car insurance. Our monthly premiums are already about the same as a car note.

5 thoughts on “Our Auto Insurance Premiums Are Killing Me!”

  1. Make sure you are taking advantage of all discounts. If you have any other insurance (home, renters) you should bundle your policies to save money. We’re with Allstate and I get discounts for both paying our premium up front (6 months at a time) and for paying electronically. These two things alone have saved quite a bit. Your agent might not willingly tell you about things like this (ours does but I know many don’t) so make sure to ask.

  2. I seem to recall when I got my license and inherited an old beat up car from uncle (when he bought a new one), my parents required that I still pay a car payment to them in the amount equal to the increase in insurance prices they had to pay. I worked a part-time job a couple nights a week specifically for spending money and to pay for the insurance. This way I could get used to the responsibility of making a monthly payment, and also made me appreciate and take better care of the car since I still had to “pay” for it every month. I continued to pay my parents until I was able to get my own car insurance. Have you thought about doing that? Do your kids have jobs yet?

    1. Our oldest drives our 2002 Buick Rendezvous. He has a job at a grocery store and is saving up to buy my Dad’s 19-year old Jeep. We are going to pay half of the cost of the Jeep. As of right now, we cover gas and insurance. After he gets the Jeep we’ll figure out how much he will pay for insurance and gas. It won’t be free.

  3. I have a seventeen year old recently licensed child. When an opportunity to buy a good used car (not quite a just driven to church on Sunday type) I called to check what our insurance would be. The car would have been comparable in value to the vehicles my husband and I drive but our insurance would have tripled. So we did not buy the car. To add our child as an occasional driver to our vehicles added about a dollar a day (1/6th the price of buying them a car) to our auto insurance. After the fact I found out that it also added about $.50/day to our umbrella liability policy. Children need to know how to drive, what can you do.

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