My annual auto insurance premium has risen by $800, and I’m perplexed as to why this happened after I relocated from Tacoma, WA, to Denver, CO, in August 2024.
I have excellent credit, a clean driving record with no accidents or tickets, and the only claim on my history is for a windshield replacement covered by my glass rider last year. I don’t commute for work and drive less than 12,000 miles each year. I’m a single female homeowner with a 2018 Subaru Outback.
After speaking with a couple of male friends in their mid-30s who live in Denver and own SUVs similar to mine, I learned they each pay around $1,200 per year for insurance. One of them has a 2020 Toyota 4Runner and has even had an accident claim in the last five years, yet they still pay significantly less than I’ve been quoted.
While I can accept a modest increase in my premium, an $800 jump feels outrageous. I’ve shopped around and collected several quotes, but they all seem to be much higher than what I paid last year.
Something doesn’t seem right—does anyone have any insights on this situation?
It sounds really frustrating to see such a significant increase in your auto insurance premium, especially when your driving history and personal circumstances seem favorable. Here are a few potential reasons for the jump:
Location Differences: Insurance rates can vary widely between urban areas due to factors like crime rates, accident frequency, and overall risk assessed by insurance companies. Denver may have higher theft or accident rates compared to Tacoma, which could be contributing to the increase.
Changes in State Regulations: Colorado might have different insurance regulations, rates, or requirements compared to Washington, impacting overall premiums.
Market Trends: There can be broader market trends affecting rates. Many insurance companies have been raising their rates due to increased claims or financial losses from recent natural disasters (like wildfires or floods) and the rising cost of repairs.
Coverage Options: Double-check your coverage limits and deductibles to ensure they match what you had previously. Sometimes, even small changes can lead to large shifts in premiums.
Demographics and Underwriting: Insurance algorithms often factor in demographics related to the area, such as the density of accidents or thefts and even gender, which may result in different rates for you and your friends despite similar vehicles.
Credit Factors: Even with excellent credit, different insurers weigh these factors differently. Make sure you’re comparing apples to apples in terms of coverage when you shop around.
It might be worth consulting with an insurance agent to see if there’s a specific reason for your premium increase and if there are any additional discounts you may qualify for. Keep advocating for better rates—sometimes, persistence pays off!