RACV increased my car insurance from $238.47/month to $453.68/month, and I haven’t even made any claims or changed anything on my end.
When I asked why, they replied with this:
“On receipt of your feedback a review of your insurance premium was undertaken, that review is now complete. I can confirm that the premium calculations and discounts applied to your policy are correct.
RACV aims to offer competitive premiums wherever possible and understands that this is an important part of any purchase decision. Motor Vehicle Insurance premiums are determined based on risk factors, such as the type, age, and value of a vehicle, the age and gender of drivers, and any incidents the owners and drivers have had. We regularly review the premium loadings attached to each of these factors and increase or decrease them based on our most recent claims experience.”
Nile said:
Idk how people think insurance rates are gonna stay the same when everything else is getting more expensive.
I get that prices go up, but doubling my premium? We’re just a few months into the year, and people are seeing 30% increases on top of what we saw last year. These are way above what anything else is rising by.
@Landry
Think about it. Car prices have skyrocketed, whether they’re new or used, so payouts on totaled cars are way up. People are back to driving more, so accidents are up, and medical costs are off the charts. Add in auto supply chain issues, and people suing for every accident—it all adds up.
@Jin
I get it, but take GEICO, for example. They had record profits in 2023, yet premiums are at all-time highs. Fuel’s back to pre-COVID levels, so inflation’s not the full answer. A lot of people might just go without insurance if costs keep going up, and that only hurts everyone.
@Landry
You clearly didn’t check 2022—GEICO lost $1.88 billion. They needed that 2023 profit to cover it and build reserves. If they have big profits this year and next, regulators might even force them to refund premiums. Insurance isn’t like retail, where companies can just charge what they want. Everything’s regulated, and they aren’t allowed to make excessive profits.
@Jin
1.8 billion loss? Geico spent over a billion on ads in 2020, so spare me. Liberty Mutual’s no better with nonstop ads while they deny new applicants and lowball customers. And then we’re forced to haggle with consultants or attorneys to get fair payouts. I get the industry needs profit, but paying 100% more than 10 years ago is insane.
@Kai
My favorite: ‘How dare you not notify me!’ Uh, that renewal packet we sent was the notification. Just because you didn’t open it doesn’t mean we didn’t notify you.
Shop around and see if you get a better rate somewhere else. If you find one, switch carriers. If not, stay put or start a new policy. Insurance companies don’t owe you a certain price.
Rates are up everywhere. Companies are scrutinizing policies more, rating people harsher, and giving fewer discounts. They’re also reducing exposure to certain areas and people, so raising rates often encourages customers to switch on their own rather than having to drop them.