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.