My insurance company has added $375 every month for my auto insurance. What should I do?

Question

In february this year I backed out of a parking space and hit a hyundai that was backed into the spot behind me. The estimated damage was $800. I didn't have the money at the time so we went through the insurance companies. I was told by the insurance representative that If I didn't pay the deductible to fix my truck then the only money I would pay was a possible slight increase in premiums.

Now my auto insurance company has increased my premium by about $40 (no biggie). The thing that gets me is what was explained to be a surcharge of $320 every 6 months for 3 years. That increases my insurance to over $1000 from $630 per 6 months!

I'm 20 years old, in the military and can't afford this! That's almost 2 months pay for me for a year of car insurance!

Does this seem right? I don't know much about car insurance but this seems like a drastic punishment for cracking a hyundai's bumper.

Insurance company is USAA

Answer 1

usaa sucks - just like most companies

Answer 2

This seems about right.  You may be able to save some money by increasing your collision deductible.  I would also suggest you call a few other companies for rates.  Have them quote you exactly the same coverage that you have now (same deductibles, same limits, etc.) so you are comparing apples to apples.  Make sure you tell them about the accident.  Also see if any have a discount for military.  I thought GEICO did.  

Answer 3

Seem to me to much. How about to try change the insurance, look in the internet for a lot of opportunities in cars' insurance, I have  AIG , is really very good. Good luck.

Answer 4

USAA is probably as low as you can get but first call & make sure it is not mistake. Then if it is call the insurance commisioners & file a complaint. If all of this doesn't help then go to another place to see if you can get it cheaper.

Answer 5

You need to do some shopping around for car insurance.  You can check most companies out on line.

Answer 6

Scout around. There are surely other insurance companies that are hungry for your business.

Answer 7

I worked for USAA and managed the auto program.  Last year, about the time of your renewal, the company raised rates on all Enlisted.  If you had a claim or not, you were going to pay more.

They go through cycles every two years, when they want to grow, they lower the rates, and when the losses start developing, they raise the rates.

USAA caters to the officers, and to be honest, they don't want the Enlisted on their books.  Enlisted makes up only 5% of their clients.  As long as your with USAA, you will never have stable rates for your insurance.

As far as getting new auto insurance, you're a young male and you can expect to pay more than anyone.  I would sugest going to an independent agent (they sell multiple companies, unlike a captive agent like State Farm, who only sells their company product).  Ask for three to five quotes.  Also, go online and get a qoute from Progressive, Gieco and maybe Esurance.  An independent agent may also qoute you a Progressive price, but be sure to get your qoute online, as Progressive has two seperate rates for the independent agent channel and their direct channel, and the online rate is almost always cheeper.  Also keep in mind, some companies like Gieco rate you by your profession, and unfortuantely, Enlisted is one of the highest risk groups, which means you may pay more at companies that ask you about you education and occupation.

In short, shop around online and with an agent, then compare prices.  Pick the best one (keeping in mind that not all insurance companies are the same, so pick one with a name you know you can trust and count on.)

Here are some other tips: if your vehicle is older than 10 years, you may want to drop Collsion and Comprehensive coverage.  Chances are that these coverages will cost you more that what your car is worth in three to five years, and that's not a good investment for you.  Choose higher deductibles.