Breathtaking Auto Insurance Premium Increase

[mfarrzhp]

Originally Posted by Donatello.

One word. GREED.

Yes, there is greed. However, basic economics says if big insurance companies are colluding to keep prices high, even one company could come in and take huge market share coming in just 10% lower. Would you rather make 15% margin on $1 billion or 5% margin (plus investment income) on $10 billion, $25 billion?

I work in the property space, but a small cap carrier on the homeowner side. The truth is that even large cap carriers have had huge underwriting losses from 2021-2023. Rise in accidents, car theft, catastrophic weather events, big inflation for vehicle prices, parts and labor, and huge defense costs and settlement payouts from the lawyers advertising 1 out of 3 commercials on your local news claiming they can get you more money on your claim. It’s cheaper for the big company to settle for $30K than to pay for several months of litigation expenses.

Yes, part of it is your own driving record, but the majority is your coverage limits, zip code, homeownership status, credit score, age/gender and type of car you drive. All the M car fails you see on social media are not a coincidence.

As someone with 20 years in the industry, I could raise $40M from investors and colleagues to start a new small company, but the truth is that it’s an extremely competitive and difficult business to make money. Most small guys go out of business and most big guys break even at best on underwriting and make money on investing the billions they bring in from premiums. I pay $12K per year in auto insurance for 4 cars, and with a 16 year old daughter driving one of them, I know it’s about the expected loss cost for my household.

[mfarrzhp]

Originally Posted by KevinC

Discriminate? Sure, if that's what you want to call it. All of those things you name are higher risk factors, thus higher cost. The JAMF with lousy credit WILL statistically wreck more cars than the guy with an 800 score. So if you have good credit, do you really want to pay extra because some other group of drivers is actually a higher risk than you are? I don't.

Yes lower credit is more slightly more likely to get in an accident. More importantly, they are more likely to put in a claim because they are more likely to not be able to fix a small fender bender out of pocket. Also more likely to commit fraud and to call the lawyers on TV to get them more money from their settlement.

Got bumped from behind? Call the lawyer, see a chiropractor and get a $25K settlement. Of course, the lawyer will take 40% of the settlement.

[AmuroRay]

Originally Posted by alex2364

So move to a state that allows self insurance.

In Michigan, your insurance pays for you and not the other guy.

[Donatello.]

Originally Posted by mfarrzhp

Yes, there is greed. However, basic economics says if big insurance companies are colluding to keep prices high, even one company could come in and take huge market share coming in just 10% lower. Would you rather make 15% margin on $1 billion or 5% margin (plus investment income) on $10 billion, $25 billion?

I work in the property space, but a small cap carrier on the homeowner side. The truth is that even large cap carriers have had huge underwriting losses from 2021-2023. Rise in accidents, car theft, catastrophic weather events, big inflation for vehicle prices, parts and labor, and huge defense costs and settlement payouts from the lawyers advertising 1 out of 3 commercials on your local news claiming they can get you more money on your claim. It’s cheaper for the big company to settle for $30K than to pay for several months of litigation expenses.

Yes, part of it is your own driving record, but the majority is your coverage limits, zip code, homeownership status, credit score, age/gender and type of car you drive. All the M car fails you see on social media are not a coincidence.

As someone with 20 years in the industry, I could raise $40M from investors and colleagues to start a new small company, but the truth is that it’s an extremely competitive and difficult business to make money. Most small guys go out of business and most big guys break even at best on underwriting and make money on investing the billions they bring in from premiums. I pay $12K per year in auto insurance for 4 cars, and with a 16 year old daughter driving one of them, I know it’s about the expected loss cost for my household.

lol a long winded post of nonsense.

Big companies, in just about any industry, are just greedy. However, insurance is an even bigger disgusting animal.

Companies keep posting record profits these days. Wonder why...

SMH. Shame on you

[Rickygst]

My insurance went up by 74% granted an accident where a big truck ran me off the road and I hit the median wall and my wife had an accident where she backed into someone in a parking lot. Before these two instances nothing for 20+ years. I knew it would increase but not almost double. And guess what now it stays on your record for 5 years with the insurance companies.

You buy insurance to protect you in case of an accident but if you have an accident you are screwed many years over.

[x622]

Originally Posted by Rickygst

My insurance went up by 74% granted an accident where a big truck ran me off the road and I hit the median wall and my wife had an accident where she backed into someone in a parking lot. Before these two instances nothing for 20+ years. I knew it would increase but not almost double. And guess what now it stays on your record for 5 years with the insurance companies.

You buy insurance to protect you in case of an accident but if you have an accident you are screwed many years over.

Precisely. Insurance at this point in time is nothing more than a contract that requires a monthly payment to execute a short term high interest loan on whatever it protects.

Now that they scrape data from lexisnexus, automotive manufacturers, etc, they more precisely tune their risk profiles even further to ensure that if you have anything on your record, the contract payment is higher to execute said short term high interest loan.

I had a REALLY rude awakening insuring my 720s, and have do creative things to insure other cars just because of how sneaky insurance providers have become. It may vary state by state, but here in AZ $0 windshield claims still count as claims, and are used against you when they calculate your rates. Because I replaced a total of 6 windshields in the scope of 3 years on the x5m(s) and 992 TTS, my premiums doing it normally were absolutely insane.


Everything in this world just keeps getting shittier, not better.

[BlkGS]

Originally Posted by Donatello.

lol a long winded post of nonsense.

Big companies, in just about any industry, are just greedy. However, insurance is an even bigger disgusting animal.

Companies keep posting record profits these days. Wonder why...

SMH. Shame on you

Because of inflation. Companies SHOULD post record profits every year, because 100k this year has less buying power than 100k the next year. If you're not setting record profits, you're shrinking.

[Donatello.]

Originally Posted by BlkGS

Because of inflation. Companies SHOULD post record profits every year, because 100k this year has less buying power than 100k the next year. If you're not setting record profits, you're shrinking.

lol smh

[BlkGS]

Originally Posted by Donatello.

lol smh

Yes, shake your head at math. Math is hard and spoils a wonderful opinion fueled by propaganda with facts and reason.

[Donatello.]

Originally Posted by BlkGS

Yes, shake your head at math. Math is hard and spoils a wonderful opinion fueled by propaganda with facts and reason.

lol riiiiiiiiiiiiight. Good day

[BlkGS]

Originally Posted by Donatello.

lol riiiiiiiiiiiiight. Good day

My favorite is when people lose debates and then try to walk away like they won.

[x622]

Originally Posted by BlkGS

My favorite is when people lose debates and then try to walk away like they won.

He's just gonna block you know.

[Donatello.]

Originally Posted by BlkGS

My favorite is when people lose debates and then try to walk away like they won.

I made no mention of any "math"

You ASSumed what I meant.

You seem to need to win internet nonsense.

Do better. Be better. Good day.

Ignore list bound!

[BlkGS]

The math I was talking about was the fact that inflation means that if you aren't making record profits, you're making less than you did in previous years, even if you make 100M both years.

This is basic stuff here. High schoolers should be able to figure this out.

[x622]

Originally Posted by BlkGS

The math I was talking about was the fact that inflation means that if you aren't making record profits, you're making less than you did in previous years, even if you make 100M both years.

This is basic stuff here. High schoolers should be able to figure this out.

Lil' princess there blocked you. He's making his own echo chamber.

It's all good, not everyone can understand basic economics, or handle differing opinions/viewpoints.

[BlkGS]

Originally Posted by x622

Lil' princess there blocked you. He's making his own echo chamber.

It's all good, not everyone can understand basic economics, or handle differing opinions/viewpoints.

*Shrug* If he opened his ears he might learn something, and maybe be happier.

This narrative of "greed" has been pushed to death, and here's the thing... Companies exist to make money. Wall St and shareholders expect them to. And with the rise of mega investors, companies have been pushed to increase profits every quarter regardless of what it does to them long term. It's not good enough to make record profits, you have to meet the target some coked.up Wall St analyst thinks that you can hit. If you don't your stock takes a crap and you as the leadership of the company get fired by the board of directors that are appointed by the majority shareholders.

[Condorll]

My wife just had her policy renewed with a 25% Increase.
Drives less than 4,000 miles per year, pleasure only.
Parks in our garage in our home in the suburbs.
2017 Acura RDX.
She has had no accidents or claims in 15 years.
This is the biggest increase we have ever seen, who the F are we paying for ? EV's? Illegals?

[Alfisti]

Over here it is the rampant thefts. Wild west here for stolen cars.

[RM7]

You are paying to spread the cost out amongst a peer group and still provide profit for the company.

If you can self-insure, then just do that, but medical and collision related costs are probably not realistic. I think everyone is probably just thinking the cost of their car, and MOST people that have to use insurance don't have to go down the road of medical costs, etc. Then you add the things that you just can't control, mother nature, acts of god, random stuff where a load on an 18 wheelier breaks loose, etc. When you start breaking up the peer-groups to smaller groups, it's going to put a disproportionate amount of cost on people who through no fault of their own are in these groups.

I see some pretty big insurance buildings though all over big cities...

[jessejericho]

Originally Posted by Weather Man

Yes.

Source?

[Condorll]

Originally Posted by Alfisti

Over here it is the rampant thefts. Wild west here for stolen cars.

Yes, Toronto and especially Montreal are car theft capitals of Canada. The Hampton Inn I stayed at in Montreal had a car stolen EVERY night for 4 nights I was there.

Montreal port used to have an xray scanner for containers being loaded on vessels but it broke and was never replaced.

Saw a Toronto Cop at a town hall video telling residents to keep their keys by their front door so thieves don't break into your house and shoot you for your car keys, they can scan the key fobs from outside and take your cars from your driveway.

What a pathetic lawless society you now have in Canada, no one takes any reponsibilty, free for all. Try breaking into a house in the USA and the theives would get their F'n heads blown off, guaranteed.

[jessejericho]

Originally Posted by Weather Man

Insurance statistics articles are endless. Fun fact, illegal alien driving is 3 times more likely to cause a fatality accident than a licensed legal driver.

So you didn't post a source, and then stated another statistic without a source.

Originally Posted by Condorll

What a pathetic lawless society you now have in Canada, no one takes any reponsibilty, free for all. Try breaking into a house in the USA and the theives would get their F'n heads blown off, guaranteed.

Lol pretty rich coming from an American, good luck in November