So, Insurance prices could get better here in the next 12 months. When will the insurance companies lower their rates or stabilize where they’re not raising them? If you’ve read several of my other articles, they’ve been on this website; feel free to check them out.
We talk about the companies with planned rate increases; some are showing 20 to 40% or even 50 plus% increases in their premiums. I just had a few customers get rates of 120%, so there are different scenarios. Remember they didn’t have any changes, no credit change, no location change, no accidents, no tickets, their home, their Auto, all of it.
What is Causing the Sharp Rise in Insurance Premiums?
Various companies are just trying to catch up and get back into profitability to move forward and have an insurance company that stays under. That being said, there are a lot more changes that we’re going to see probably in the next six months; I would say starting into 2025, we’re still going to see some increases we’re going to see your Progressive companies, which honestly, these are my favorite ones as far as increases go anywhere from 2 to maybe 12%. I’d probably say 2 to 4%, which is doable.
I don’t care if you can raise me 4% is inflation, so I’m okay with that; you’ll see your larger box companies like State Farm Liberty Mutual and maybe Nationwide. They’re a 50/50; they might only go up a little, uh, you’re looking at maybe Travelers. They’re a 50/50 as well. Uh, you’re looking at all states; they’re 20% like you see that you’ve seen that.
How Much Will Auto Insurance Rates Increase by 2025?
I believe they’re going to do it again; I mean, look at the reports of the State. The farm just improved. They improved in the last quarter but lost $4 billion in underwriting losses. Now, that’s not their profitability.
That’s the claims that are coming in the right, so it went from, I think, 7 billion if I’m not mistaken, or 8 billion last year; I have an article on the website that goes over that they lost so much last year that it was ridiculous, and then they didn’t raise their rates that much and now we’re starting to see the spikes happen, right same thing with all State was forward with everything and said we’re going up like we’re changing the coverage plan we’re going up in price, know that, but they already did most of that, so they’re It is just high right now in Most states, right so they’re expensive.
Why Are Major Insurance Companies Raising Their Rates?
But all these other companies are starting to creep up to be expensive as well; it is not a fun time to be an agent; to be honest with you, it’s a little bit tougher unless you have what I call Independence, so some independent agents work with a ton of different companies, and that’s what this channel is based around is mostly the people that I work with are independent agents, that’s not to say like in Arizona, I think all states are doing good, uh, and in certain States like certain major box companies are competitive, so I work with a couple of them as well. Still, in general, we’ve seen many people lean towards that independent agent because they work with the progressive, they work with, the Nationwide, and some work with all states.
Do you have Liberty Mutual, which is a safe co-insurance? You have different companies that one agent can shop all of them with, and when one goes crazy, they can shift you over to the other.
How Independent Agents Can Help You Lower Your Insurance Costs
The goal is not to shift as much as possible. Honestly, the goal is to keep the rate the same and never have you just paid the bill forever, and that’s kind of like the beauty of the world. Unfortunately, none of the companies are doing that right now, so when will these prices change before I say this is one of my opinions?
Also, if you need Insurance before this if you’re not happy with your current agent, I’m going to put a link in the description below where you can work with an independent agent, not necessarily me, because I’m not licensed in every State, so if it’s in a different state, I’ve already connected with other local independent agents that can shop you with multiple companies. Hence, it’s free to you and free to them.
I don’t even charge anyone right now; I haven’t for the last couple of years and don’t necessarily plan on it. This is just my way to help anyone. I can help them if I can help you and you guys get service. That’s what it’s for, right? If you’re in a state we’re in, that’s where I benefit, right? If you’re in one of the states where we’re licensed, we might also be able to help you.
That gives us business, and you get the benefit of having a great company; that being said, the time that I think that the prices are going to change is going into the second quarter of 2025; I have a feeling that if the insurance company has already raised their rates, they’re probably going to stabilize by then; we’re looking roughly From May to June 2025.
When Will Insurance Rates Stabilize?
I expect the rates to stabilize, and we shouldn’t see any significant increases after that. How do you come up with that partially it’s an educated guess I’ve been doing this for 12 years, I have made hundreds of articles on this channel that talks about this, I’m starting to see that slope stop at where the prices are skyrocketing that’s for the insurance company they’re going down in profit, and they’re starting to become profitable again because states are beginning to open up and say wait, a the minute we get that you’re going to leave us our State, and if you leave our State there are thousands, if not hundreds, of thousands of customers who are without Insurance it’s going to open up the courts, we’re going to have all these lawsuits, all of these things, so they’re starting to allow insurance companies to put in predictive models, which have been used in a lot of different states that will enable them to predict the chances of losses the risks that they have for States like California allow them indicate the number of wildfires that are going to happen for States like Texas, it will enable them to predict the number of weather-related claims, whether it’s freezing rain or floods in States like Florida, it’s hurricanes.
How Insurance Companies Use Predictive Models to Set Rates
These predictive models even though they have been wrong that’s part of the reason that we’re seeing these increases, some of these states have had those models wrong but the more often they check these models the more accurate they become it’s called The Law of large numbers and that’s an industry term to where if you have hundreds of thousands of people, you ensure you can pinpoint within a few dollars, maybe $100, we’ll say what the price is going to be for an insurance policy because you know the average risk unless something significant like a tropical storm like a hurricane, like a flood comes in and disrupts all of that that’s what happened the last couple years plus inflation, the more often that we see that happen the more predictive it can get right, so right now, we’re seeing those predictive models up that premium because it’s like, oh wow, we just had a spike that’s like playing a roulette wheel, and all of a sudden, you lost 10 in a row, there’s a chance you could lose 11 in a row, there’s a chance you could lose 15 times in a row, or there’s a chance that it resets every the time you roll that ball, you can’t tell it’s like roulette.
It’s fun, although $10 is enough to bet for me because it’s a losing game, right? It’s just fun to win. You’ve got that scenario where these predictive models are getting smarter and getting better to where these premiums are going to be where they need to be; the downfall for some of you who have come across this channel is that rates have not gone up yet that means in the next 3 to 5 months, some of your rates are going to go up 10 to 15 to 30% again, there’s a link in the description below.
How to Handle Insurance Rate Increases in 2025
If you’re not happy with the agent and want to shop around, but for others, your rate will stay the same, so you shouldn’t have those changes for those that have already gone through the significant spike. Mine went up $11,000 this year.
If it goes up 1,000 again, I will lose my mind, but I wouldn’t say I like it, and I’m not happy with it. Still, I know the company that I’m with has been ahead of the trend right, so they’re saying, okay, we get that this is going to change, and if we don’t change these scenarios, then we can’t offer the same level of service and product that we have, so they’ve I’ve already gone up there. They know that’s where they’re going to be stable.
Other companies like Progressive are slowly moving up to that spot, but it doesn’t hurt because it feels like then inflation, the rate increase is going up 10% is not as big of a deal as 35 Plus per. so you’re seeing those changes in rates should come down from 2025 going into 2026 if they’re not by 2026. I’m snapping this keyboard in half, and I might as well. I’m just joking. I will make more videos to help you find the companies that need to be doing it; let me know your thoughts in the comments below.
Conclusion: Will Insurance Rates Ever Go Down?
Will it be earlier than that quarter or the second quarter of next year, or will it be later? Hopefully, this was helpful. If you are looking for different companies.
Best Insurance Companies Offering Competitive Rates in 2025
I will find the article where I went over the top 10 insurance companies that will help you find the competitive companies right now; otherwise.
How to Save on Car Insurance in 2025 Despite Rising Rates
If you’re looking for discounts to stay with your current agent, by all means, there’s a discount article here that will be helpful. I’m Muhammad Ismail with car4save. I’ll see you in the next one.
