My renewal was brutal too—up almost 25%. I get I'm a higher-risk driver (couple speeding tickets, unfortunately), but even factoring that in, the jump seemed excessive. Did a deep dive into my policy breakdown and here's what stood out:
- Collision coverage saw the biggest spike. Makes sense given your point about parts and labor costs rising. Had a minor fender bender last year, and the repair shop told me upfront they were struggling to source parts quickly. Ended up waiting nearly two weeks for a bumper replacement.
- Rental coverage went up noticeably too. Guess insurers are padding for longer repair times, like you said. But honestly, I've never had to use rental coverage—wondering if it's worth keeping at this point.
- Liability coverage increased slightly, but not as dramatically as collision. Probably tied to broader inflationary pressures and wage hikes.
I agree insurers could definitely do better at explaining these hikes upfront. A simple email or note breaking down the increases clearly would help ease some frustration. Right now it feels like they're just banking on people auto-renewing without questioning it.
One thing I'm curious about: has anyone here actually shopped around recently and found significantly better rates? I haven't bothered in years because my record makes me assume other insurers won't be competitive, but maybe that's changed with all these hikes across the board...
I actually just went through this myself—first time buying insurance on my own, and I was shocked at how much rates varied between companies. My initial quote from the insurer my parents use was pretty steep, so I shopped around a bit. Ended up finding a smaller company that offered me a noticeably better deal, even with similar coverage.
I don't have tickets or accidents yet (knock on wood...), but from what I've seen, insurers seem to weigh things differently. Might be worth checking out some quotes online just to see what's out there. Also, about rental coverage—I debated skipping it too, but figured I'd rather have it and not need it than the other way around. But if you've never used it, maybe dropping it could save you a bit?
I had a similar experience recently. My renewal came in way higher than expected, even though nothing had changed on my end—no claims, no tickets, nothing. I ended up calling around and found out that some insurers really do prioritize different factors. For instance, one company seemed to heavily weigh commute distance, while another was more concerned with the type of vehicle.
About rental coverage, I get your point about possibly dropping it if you've never used it. But personally, I'm pretty cautious and prefer to keep it. A friend of mine had a minor accident last year, and his car was in the shop for almost two weeks. Without rental coverage, he would've been stuck paying out-of-pocket for transportation or relying on rides from friends and family. So, even though it's tempting to cut costs there, I'd rather pay a bit extra for peace of mind.
"Without rental coverage, he would've been stuck paying out-of-pocket for transportation or relying on rides from friends and family."
Fair point, but honestly, I've gone years without needing rental coverage. When my renewal jumped, I dropped it and put the savings aside instead. Figured if something happens, I'll have a small fund ready. Not saying it's the best move for everyone, but it's worked for me so far... guess it depends how comfortable you are with risk.
I get your logic, but as someone who's had a couple fender-benders (yeah, my fault...), rental coverage saved me big-time.
- Rental fees add up faster than you'd think.
- If you're accident-prone or commute daily, that small fund might not stretch far enough.
Just something to consider...
