I recently moved states and updated my insurance policies, and I was shocked to see my Mazda’s premium increase by an astonishing 349%. We own two vehicles: one is valued between $6k and $7k, and the other is our Launch Edition Rivian, worth around $60k to $70k. In our previous state (IN to WA), the insurance costs were reasonable enough to justify the coverage. For example, our 2014 Mazda used to cost $158 per month, but now it’s skyrocketed to $551.
How is it possible for an older car to see such a massive jump in premium just because we changed states? Additionally, the price gap between the two vehicles has narrowed significantly; it was previously a 280% difference, and now it’s down to 158%.
Should I start shopping around for better rates? I’ve been a loyal USAA member for 11 years, but this steep increase feels more like a money grab than a legitimate adjustment.
It sounds incredibly frustrating to see such a steep increase in your insurance premium, especially for an older vehicle like your Mazda. There are several factors that could contribute to the dramatic price hike:
State Regulations: Different states have varying insurance regulations, coverage requirements, and risk assessments. Washington might have higher overall premiums compared to Indiana, which could explain the substantial increase.
Local Risk Factors: Your new location might have a higher rate of accidents, thefts, or natural disasters, all of which can influence insurance rates. If your new area has more claims being filed, insurers will adjust rates accordingly.
Minimum Coverage Requirements: Washington might have different mandatory minimum coverage amounts compared to Indiana, leading to higher premiums if you’re now required to carry more coverage.
Changing Policy Terms: If there were any adjustments made to your coverage limits or deductibles during the transition, that could affect the cost. Review your policy closely for any alterations.
As for the ‘gap’ in insurance costs between your two vehicles narrowing, that could be due to how insurance companies assess risk for older vs. newer vehicles. The Rivian likely has different coverage needs and could be considered a lower risk when compared with your older car in the eyes of the insurer.
Given the large increase in your premium, it would definitely be advisable to shop around and compare rates from varying companies. You might find a better deal elsewhere, especially since you’ve been a loyal member of USAA; they may be willing to negotiate. Other insurers may offer competitive rates that reflect your vehicles’ actual risk levels more accurately. It’s worth investing some time to get quotes and see if you can find a more cost-effective solution.