Insurance increase due to increased cost of parts and labor?
I have a 1997 BMW Z3 1.9L 2-door convertible fully insured with GEICO. In 2017, I paid $640 and for 2018, they want $887, an increase of $247. They claimed the increase is due to parts and labor going up over the years. I am 61, retired, drive under 3,000 miles per year and have been with GEICO for more than 9 years. They have occasionally increased by $10 per year but never this much. In 2017, I placed two claims, one that was weather-related costing around $800 to fix and the other one where I hit a road object (no injuries) also costing around $800 to fix. My deductible was $100 for each. I wonder if that had anything to do with the increase and they just would not tell me. I have had no other accidents that required GEICO to pay out. In 2015, I was struck by another driver but they paid for all damages. I have been shopping for other insurance but not with much luck. They all seem to charge higher. I got a decent quote from an insurance call ESURANCE but the reviews all appear negative. Do you know anything about ESURANCE or any other auto insurance company that might be competitive?
There's a couple of things to look at here. First, parts and labor for BMWs are typically higher than other vehicles and are considered more expensive in general to maintain. However, I think a bigger indicator of your rate increase had to do with your claims in 2017. While I would need more information regarding the "weather related" claim, the second claim sounds like an at-fault accident. While there were not injuries, your insurance company will still raise your rates after an at-fault accident. And even more if you've had two. I'm not sure why they wouldn't just tell you that, as it's pretty common practice after an at-fault accident. As far as Esurance goes, they are a reputable company and an insurance company we work with! If you'd like to finalize your quote with Esurance or see other quotes, you can compare hundreds of quotes at once with our app here.