I recently moved from Indiana to Washington and noticed a shocking increase in my insurance rates—my Mazda’s premium shot up by 349%. We own two vehicles: one is valued between $6k and $7k, and the other is a Launch Edition Rivian worth around $60k to $70k. In our previous state, the insurance costs made sense; for our 2014 Mazda, we were paying $158, but now it’s jumped to $551. How does an older car experience such a massive hike simply due to a change of state?
Additionally, the price gap between our two cars has narrowed significantly; it used to be a 280% difference, and now it’s only 158%.
Given this situation, should I start shopping around for better rates? I’ve been a loyal USAA member for 11 years, but this sudden increase feels like a clear attempt to cash in.
It sounds frustrating to see such a dramatic increase in your insurance rates, especially after a move. Insurance premiums can vary widely between states due to factors like local laws, regulations, and the overall risk assessment in the area. Here are a few things you might want to consider:
State Differences: Washington may have different insurance laws or requirements compared to Indiana. This can lead to significant changes in premiums, especially for an older vehicle like the Mazda.
Coverage Types: Double-check to ensure you have the same coverage types and limits as your previous policy. Sometimes, additional coverages might be automatically included based on state requirements.
Local Risks: If the area where you live in Washington has higher theft rates, accident rates, or other insurance risk factors, this could contribute to the increase in premiums.
Discount Loss: Ensure that any discounts you had with USAA or through your previous policy still apply in your new state. It’s possible that some regional discounts are no longer available.
Shopping Around: Yes, it could be beneficial to shop around. Use comparison websites or reach out to other providers to get quotes. Being an 11-year USAA member is great, but if the rates seem overly inflated, it’s worth exploring.
Inquire Directly: Consider reaching out to USAA to discuss your rate increase. They can provide an explanation and might offer adjustments or identify missing discounts.
In light of these factors, shopping for rates could help you find a more reasonable premium. Good luck!