Rate Increases?

[Platt Green]

This is not kit-car related, but I wanted to see if anyone else has had a similar experience. I am insured with Allstate and when I got my latest renewal, the premiums for my '77 GMC Suburban and my '67 Chevy PU had almost doubled. Nothing has changed with my driving record and the premium went down on my '94 Mustang GT and stayed about the same for my '93 Nissan Altima. My agent can't give me any explanation saying the higher ups determine all that and it just goes by the VIN number. How about it? Any one know what is going on?

[Bob Cowan]

I just renewed my DD insurance with USAA. Same rate as before. My motorcycle insurance with Progressive actually went down a smidgen. And the Cobra insurance stayed about the same.

If mine doubled, I would need a really good reason for it, or I'd be looking for a new agent.

[Platt Green]

Originally Posted by Bob Cowan

If mine doubled, I would need a really good reason for it, or I'd be looking for a new agent.

Exactly! I dropped coverage on the truck and put the Sub on standby for now, but I am awfully curious why the rates on two old beaters went up so much.

[FFR5452]

Every so often, insurance companies have to change the rate of vehicles based on the likelihood of them being involved in an accident and the damage they do to not only themselves and their occupants but to the other vehicle and its occupants. If the likelihood of your vehicles getting into an accident has increased, and the cost of the ensuing repairs has increased, then your premiums go up.

Or, they could just be manipulating you to get you to dump that older car and buy a newer car with more safety features.

Much more likely is that some bean counter decided to charge older cars more in order to bring them more inline with newer car rates.

And if your agent doesn't answer your question, find one that will!

[rad69vette]

If your insurance company can not give you an answer for such a basic question I would hate to deal with them if you were involved in an accident and needed their help. Time for new insurance company!

[gus91326]

Quite often the simple answer is that the rate was too low to begin with; the guy that came up with the formula for your car in your area just wasn't spot on. Happens all the time. There are two ways for insurance companies to make money- reduce your coverage or raise your rates. Reducing coverage for a given premium can take up to a few years to see the effect. Raising rates can have a positive effect on the bottom line of a company in as little as two years (that's how long it takes to get every policyholder on the new rating structure).