Annual auto insurance premium increased by $800!
I’m confused trying to figure out why my annual auto insurance jumped by $800 after I moved from Tacoma, WA to Denver, CO in August 2024.
I have excellent credit, a clean driving record with no accidents, tickets, or claims—except for a windshield replacement last year due to a rock chip, which was covered under my glass rider. I don’t commute for work and drive less than 12,000 miles a year. I’m a single female homeowner with a 2018 Subaru Outback.
After chatting with a couple of male friends in their mid-30s living in Denver (both with SUVs similar to mine), they mentioned they pay around $1,200 annually for their insurance. One friend drives a 2020 Toyota 4Runner and has even had an accident claim in the past five years, while both of them are renters.
I can see a moderate increase, but an $800 hike seems excessive. I’ve shopped around and received quotes that are all significantly higher than last year.
I’m curious—does anyone have insights on why this might be happening?
It sounds frustrating to see such a significant jump in your auto insurance premium, especially given your excellent driving record and low mileage. Here are a few reasons why your policy may have increased so much after moving to Denver:
Location Risk Factors: Different areas can have drastically different risk profiles for insurance. If Denver has higher rates of accidents, theft, or weather-related claims compared to Tacoma, that could be influencing your premium. Urban areas often have higher auto insurance rates than suburban or rural areas.
Insurance Provider’s Underwriting Policies: Each insurance company assesses risk differently. Some insurers may have identified the Denver area as higher risk and adjusted their rates accordingly. This can lead to higher premiums regardless of your personal driving history.
Coverage Changes or New Policies: When you moved, did you change any of your coverages? Sometimes rates can increase if you’re inadvertently choosing higher coverage limits or additional options, even if you think you’re not.
Market Trends: The insurance market can fluctuate due to various factors like increased claims in the region, economic factors, or regulatory changes that affect how insurers operate in Colorado.
Age and Gender: While you are a single female homeowner, demographic factors can also play a role in rates, particularly in urban environments. Age can affect premiums, and while you may have excellent credit and driving history, insurers also consider statistical risk associated with different groups.
Comparison with Peers: It’s important to keep in mind that insurance rates can vary widely among individuals based on personal circumstances such as credit score, occupation, and more. Just because your friends pay lower rates doesn’t necessarily mean you should be paying the same.
Given the significant increase and that you shopped around with no better options, it may be worth reaching out to an insurance agent for more personalized guidance. They might help you find discounts you qualify for, or explore alternative coverage options, or even request a re-evaluation of your policy situation considering your circumstances.