What does that have to do with liability coverages doubling (which is what I’ve seen and more in an area with stable accident rates and rare natural disasters)
Auto ins just doubled!
- Thread starter Chris142
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JTK
$100 Site Donor 2025
Like said above, Especially with the national carriers, I think it has to do with the crazy law suits people file every day. Then you have all the fire, flood and hail damage claims on top of the regular comp and collision claims that are a lot more expensive. To what end I have no idea other than pay cash for your vehicle and carry the least amount of liability coverage you are comfortable with and no collision coverage. It sucks either way.
Yes there is! Tons of it. I never had a claim with Allstate in 25 years, then, the ONE time I needed them they refused to cover my damage after hurricane Rita. My roof was ripped off and my agent told me "just fix it yourself". WHAT??? Read that again, he said "just fix it yourself". Thats after 25 years of no auto or property claims. Zero. I was livid. I asked him then what on earth did I pay for the past 25 years? After jumping over his head and a lengthy battle, Allstate finally paid up.
But wait! The fun was not over! I wrote the contractor a check, and.... wait for it.... It bounced. I have never bounced a check in my life, ever. I investigated and my bank told me Allstate sucked the money back out of my account without telling me. That is CRIMINAL.
Understand their strategy, the three D’s of the Insurance Industry: Delay, Deny, Defend.
Everyone needs to know insurance is not "an open market". Insurance is mandated to the consumer. Anytime something is mandated, there are abuses because they know you are a captive customer to their industry. Its not like buying furniture or a TV, where you can freely choose to buy or not. Its a law.
Considering liability payouts cannot be affected in any way by being flooded or burned I guess the only option is to make it legal to drop and go uninsured.
My liability costs more than my car is worth, and the exteme 100 car pileups with 10’s of millions of property damage people use as why you have insurance exceed the limit anyway.
California doubled the amount of liability. For the first time in a generation.
https://www.carinsurance.com/trends-and-insights/california-auto-insurance-law-changes-in-2025/
GON
$150 Site Donor 2025
It was my understanding that the insurance industry was never designed to have the premium a customer pays as a method to generate direct profits. It was reported an insurance company's goal is to pay out in claims exactly what the insurance company receives in premiums.
Where an insurance company is designed to make profits, is in the investment of their customers premiums, before the company pays out claims. So, a three percent profit is likely a normal, healthy, predictable profit for an insurance company. For an insurance company, it is not exclusively the profit margin that is measured, but the net annual profit.
Fictious simple example:
Nice $400 million-dollar net profit without having to manufacture anything, not having to transport anything, etc.
This is what the insurance industry is all about, using other people's money for free to make a ROI.
Where an insurance company is designed to make profits, is in the investment of their customers premiums, before the company pays out claims. So, a three percent profit is likely a normal, healthy, predictable profit for an insurance company. For an insurance company, it is not exclusively the profit margin that is measured, but the net annual profit.
Fictious simple example:
- BITOG insurance receives $10 billion USD in premiums annually.
- BITOG insurance company invests $10 billion USD annually and receives ROI of $700 million dollars
- BITOG insurance has non claim administrative expenses of $300 million
- BITOG insurance pays out $10 billion USD in claims
- BITOG insurance makes a net profit of $400 million USD, yet paid out 100 percent of the premiums collected in claims
Nice $400 million-dollar net profit without having to manufacture anything, not having to transport anything, etc.
This is what the insurance industry is all about, using other people's money for free to make a ROI.
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GON
$150 Site Donor 2025
Isn't that what all investing does, either directly or indirectly........
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What's interesting is how low those thresholds actually are. I've had 100/300/100 for at least 27 years, with full coverage (I have only myself to blame for carrying full coverage), one accident in 2010 in which the cost was $3k or so with a $500 deductible.
The new CA minimums are 30/60/15?
Basically, you can say I've been overinsured almost my entire driving career. With all that premium collected, the insurance cos have money to hire Super Bowl champs to do their ads (haven't seen my team doing ads yet), yet scream that they can't profit as they should because people are creating losses for them. When there is a natural disaster imho that's when they show their true colors--nature did it, yet they cry and cry about their poor profits.
My dad never carried anything more than liability to include when he bought new cars. Then again he passed 10 actuarial exams lol (he had one accident in his life). I joked with him that he possessed a masters in applied math from a school that today has a 5% acceptance rate, so why, do you buy Powerball tix? He would laugh and say, I know, but someone has to win.
The one observation I've had, is when the insurance cos aren't satisfied with their rates, they simply leave their insured high and dry and provide no coverage at all by exiting that market, yes, like a good neighbor.
Huh?
Why do you have to pay more money?
Log off Bob is the oil guy and get online insurance quotes from five other companies.
The reason your rate went up I can only guess that you have not switched to insurance companies in the last two or three years.
It’s called rate creep. They know you won’t switch so they build in price increases. Time to teach them a lesson.
Insurance is cheap for those with good credit history, no accidents or claims AND shop around yearly for better prices.
Everyone has in addition to their credit score an insurance score.
My whole life my rates have been dirt cheap compared to some of the things that I read in here. So cheap it’s stupid and I carry high limits on all types of liability.
If people don’t shop around then it is their own fault. I can see in California issues, especially with the recent fires.
Then again we live here on the East Coast
Even my coastal insurance is stupid cheap, it’s so cheap. I won’t even tell my neighbors what I pay because I’m afraid everybody will go to the same company. LOL I’m quite sure that I pay at least 50% less than most people in my community.
It could be a first year teaser rate with a new company, but even if it goes up from there, it cannot be that much, however, if it ever did, then I just switch again.
People should check with five different companies before they go in forums and complain
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For that matter, the discipline was originally known as Political Economy.
Politics and Economics are inextricably intertwined in any system of government and all governments inevitably pick winners and losers, albeit sometimes inadvertently.
Exactly. With all the losses in California, they raised the rates.
Be glad they didn’t just cancel you. That’s happened in many states.
High losses - cancel coverage for that area.
JHZR2
Staff member
I highly doubt it’s any better in CA. In fact, I would argue the same thing you said about most parts of CA.
The issue is inner cities and ne’er do well people. To be honest.
I call hogwash on most of your first statements.
It’s pretty well established that car insurance is the one industry where it is legal to discriminate based upon age, gender, location, work, credit, etc. so it is manipulated in terms of how much to charge one person.
The one person’s risk as a driver may be a number, but they’ll also charge as if every vehicle you own is in use concurrently. That’s another ripoff. The “multi car discount” is a sham, it doesn’t reflect the practical reality of driving on oh one vehicle at a time.
Fraud, uninsured, and fire/flood risk, I agree 100%. Thing is, if you’re pooling risk, which is the point of insurance, then letting them build and dumping it on insurance is part of the game. Now it’s coming to roost, because the costs are high and they’re trying to extract more money to cover those risks.. thing is, everyone, everywhere has risks. So now it’s just increasing everywhere. As you might expect.
Home and auto are different situations too… which is why I think folks are finding benefit in not bundling…. My issue has been the time wasted shopping and shopping for separate or combined policies…. Sure, one might take 10 minutes. But to genuinely shop around?
State minimums are laughably low all over the place. It’s used as a crutch to get folks “legal” with the understanding that folks who own nothing are lawsuit proof. What are you going to take from them?
That’s a good part of the problem… you can be a completely legal driver, and still screw over the system.
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I understand rate creep. The price doubled without us knowing. Had the $$ ready but they took double so now my tags on my truck are going to be late and will cost more.
We had everything covered and ready to be paid but this extra output of $ messed our budget up huge.
Things like this make it hard to follow the rules.
We had everything covered and ready to be paid but this extra output of $ messed our budget up huge.
Things like this make it hard to follow the rules.
Once you've bled the poor dry, they're judgement proof. There's a certain amount of freedom to that.
If we had a solid middle class, people as an aggregate would have something to lose, so they'd put the effort into not doing so.
Truth is probably the same as it was 100 years ago, if you get in a wreck, hope the person you meet is "rich."
And they will do nothing in most places
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