Progressive — Blog

Endless inflation

And the inflation hits keep on coming. Yesterday I was surprised with a double-whammy: renewal notices on this very domain (hosted by GoDaddy), and my auto insurance (underwritten by Progressive). Both are going up, much to my immense chagrin. Honestly, what remains in our daily lives that has not increased in pricing?

I would classify GoDaddy’s price bump as greed. How much work is there to maintain domain registration? My website is not even hosted with GoDaddy! I am failing to understand where the extra money is going towards. Maybe this site has increased in traffic enough to warrant a price increase? (A lot more pings!) That’s just my ego talking, obviously.

What isn’t greed is my auto insurance premiums going up. I have first-hand experience with how expensive it is to fix cars these days. My father’s Toyota Corolla got into a low-speed fender bender, and the whole ordeal was over $10,000. That’s about half the cost of the car new. It’s all the tech stuff in modern cars that’s driving up the costs. The Corolla has a front radar sensor, which in addition to replacing, the body shop had to drive the car to the local Toyota dealership to get it re-calibrated. Money.

So I don’t blame Progressive for raising my rates. The only slight ickiness about it is that it will probably never go back down. Cars certainly are not getting less complicated! Paying $200 a month (almost maximum coverage with high deductibles) for a car I seldom drive is the price to pay for being a car enthusiasts. My brother has a Lotus Evora - a six-figure sports car - on order. He’s going to be absolutely raked over when it comes to insuring that thing properly.

As saying goes: got to pay to play.

Another six months

Last night I got an email from Progressive notifying me of my upcoming insurance renewal. Good news: premiums on my BMW M2 Competition did not go up. Bad news: the premiums did not go down either. As my friend commented: it’s truly a glass half full situation. I look at it slightly differently: it’s always better to gain nothing than to lose something. So I’m okay with premiums staying put for another six months.

I guess Bay Area BMW owners haven’t got into more mayhem than usual these days. Unfortunately, our cars must still be massively expensive to repair. If my father’s Toyota Corolla costs nearly $20K to fix for a simple front-end fender bender, a BMW with all its fancy aluminum bits has got to be worse. That’s why I am paying just above $1,000 dollars every six months on a plan with a $2,500 collision deductible.

And Progressive is already cheapest amongst its peers. Premiums would be double with State Farm or Geico. It’s madness.

All for a car that I seldom drive. It’s an expensive hobby, this car enthusiast thing. Being a single male in his mid 30s doesn’t help things either. And I’m suppose to be getting a second car in a few year’s time? (Hello there, Honda Civic Type R.) Though apparently it doesn’t cost that much more to insure additional vehicles. Insurance companies know you the lone person can only ever drive one car at a time. So you would only be be insuring the opportunity risk of driving the second vehicle, which at the same time decreases the risk of the primary vehicle.

Got to spend money to save money, I guess?