Car insurance went up 40% at renewal - is this normal or should I switch?

Personal Finance

Ive been with Geico for 5 years, clean driving record, no claims. My renewal just came and its ,840/year up from ,320 last year. I called and they basically said everyone is going up. Is this actually normal across the industry or should I shop around? I always assumed loyalty would be rewarded but apparently not.

Michael Williams

3 Answers

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SHOP AROUND. Loyalty means nothing to insurance companies.

Rates have gone up industry-wide (inflation, repair costs, more accidents) but 40% is steep. I was with Progressive for 7 years and they tried the same thing. Switched to State Farm and saved /year.

What to do:

Get quotes from at least 5 companies (Progressive, State Farm, Allstate, Liberty Mutual, local/regional insurers)

Make sure youre comparing identical coverage

Ask about discounts you might be missing (bundling, low mileage, professional associations)

Consider raising your deductible if you have savings

Pro tips:

Dont call - use their websites or an independent agent

Check your credit (many states use it for insurance pricing)

Some companies are just cheaper for certain demographics

I switch every 2-3 years now. Theres no penalty and it saves me hundreds. Insurance companies literally count on customer inertia. Dont be that customer.

Brittany Thomas

Switched from Geico to a local insurance agent last year and saved like . They shop multiple companies for you. Sometimes the big names arent the cheapest despite what the commercials say.

Amanda Wilson

40% increase happened to me too. Got quotes from 6 companies, ended up with Progressive at only 15% more than my old Geico rate. Definitely shop around, loyalty means nothing to these companies.