Auto ins just doubled!

[Charmet37]

Those people driving around with VA plates in other states don't have car insurance. That's why they have VA plates. I know VA closed that loophole recently, but there are still hundreds of thousands of VA plated vehicles in MD with no car insurance.

Yup, Plenty of Virginia plates in Maryland. I live in a small town in MD and don't see to many but when I visit family members in other parts of the state I see a ton of Virginia plates.... People with VA plates speed and drive like there crazy.

 

[PandaBear]

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:

• 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.

Yes, basically that's how insurance work, and people always think they are better than average in risk and therefore deserves a better rate. When everyone thinks this way everyone is unhappy. This is in every single insurance out there auto home medical travel etc.

The biggest problem with this business model is catastrophic even can turn that 10B claim on average into 100-200B all of a sudden. That's why even insurance companies have to manage their own risk and buy their own insurance (reinsure).

I knew a banker who said even the bookies from sport betting sometimes have to place bet in larger places to hedge a catastrophic event when the bets they get are all lopsided to one way. That is also why no insurance will cover war, ever.

 

[PandaBear]

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.

Making it too high will turn people into uninsured, that's how a successful law have to deal with: making it too harsh to follow and you will turn everyone into criminals.

Thing is insurance in America is to protect yourself from being sued by someone, not to protect others. You buy more insurance because you have a bigger target on your back, not because you are broke and people can throw you in jail if you cause monetary damage. For people with nothing (that's including all citizen and undocumented), they can walk out of emergency room, crash a car, lose a lawsuit, got bad credit, and still be protected with basic laws and not get thrown into jail (I do think this is fair to be honest), so it is up to those with higher net worth to protect themselves by buying insurance and staying away not get hit by an uninsured vehicle. I don't want to chance dealing with people with nothing to lose and even if I win I cannot collect my damage.

 

[PandaBear]

Long story for another day, but when I was 20 I got into a fist fight delivering pizza. College student tried to take my pie without paying. 2 years later I was being sued for $2 mil. My dad told me you don't have 2 mil. so if you didn't do anything wrong don't worry, if you did they'll just take your future wages, so worry. Thanks dad. Anyway I never heard from anyone again after giving a deposition but I know that guy got a lot of money. looked him up on linkedin and he's a CEO of a co today. figures

Maybe you can write a book and see if his lawyer want to buy the right to the story and pay you to shut up instead, now that he has a bigger target on his back.

 

[PandaBear]

Well, y'all are making me feel better about the mandatory public insurance back home.

I pay C$8xx annually for our 2007 Dodge Grand Caravan (preferred), and ours sons' vehicles (2009 Kia Sedona and 2009 Mazda5) run around C$12xx annually (all-purpose).

It is not all bad even in California.

I have 100/300 insurance on 2 vehicles, 1 is liability only because it is old, and that's only $450 on that one, the other is full coverage because cat converter got stolen a lot here, and it is around $450 + $300 on that one. Per year.

I only buy what I need and don't drive cars that are expensive to make, expensive to repair, expensive because other owners of this type of car crashes a lot, etc. I am so far happy although all claim adjusters are hard to deal with and pain in the butt to deal with in the US.

 

[PandaBear]

How exactly do losses from fires relate to the cost of liability insurance for damage. Different pots of funds.

I’d understand perhaps if comprehensive rates went way up due to cars being burned up and total losses.

That said, insurance pools all risks. So people inland do pay for losses at the coast, or vice-versa. But OP is talking about car insurance, not property insurance. To increase liability rates due to building losses is crazy.

There is a law I think that prevent insurance companies from cherry picking here and there, or not increasing rate after a fire claim.

So when you force a loss on one place that force them to increase rate in others to cover, or force some to exit entirely and reduce competition.

 

[JHZR2]

There is a law I think that prevent insurance companies from cherry picking here and there, or not increasing rate after a fire claim.

So when you force a loss on one place that force them to increase rate in others to cover, or force some to exit entirely and reduce competition.

That’s fine, but we are talking about two risk pools. The discussion turned into homeowners and auto. My point is that fires taking folks homes is a different pool than auto liability.

If comprehensive went up due to losses, I get it. But if auto liability, emphasis personal liability, goes up because of fire burning up peoples homes, it’s two separate accounts and lines of insurance. Total corporate profit may be affected, but the point is that monetary reserves and payouts are two different pots.

And if I’m wrong with that, I’d like to see how the law doesn’t regulate it as such…

 

[macarose]

It all begins with buying a vehicle that is...

1) Inexpensive
2) Safe
3) Simple to repair

From there...

4) Don't drive much
5) Live where traffic is low
6) Take a defensive driving course

After the next double-digit increase happens...

7) Put on a tracker
8) Stick to liability insurance
9) Drive like you're a weathered retiree

Finally, after you get surprised with a 100% rate hike...

10) Carpool with friends
11) Use the senior bus
12) Bum a ride from your kids

 

[Chris142]

It all begins with buying a vehicle that is...

1) Inexpensive
2) Safe
3) Simple to repair

From there...

4) Don't drive much
5) Live where traffic is low
6) Take a defensive driving course

After the next double-digit increase happens...

7) Put on a tracker
8) Stick to liability insurance
9) Drive like you're a weathered retiree

Finally, after you get surprised with a 100% rate hike...

10) Carpool with friends
11) Use the senior bus
12) Bum a ride from your kids

1. All older cars and paid off
2. Safe as they were when new.
3.All easy to fix.
4. I commute 11 miles 1Way.
5.less busy than down the hill
6.Does having a class A count?
7. Don't have.
8.only the Toyota is full coverage
9. That's me. I couldn't drive a wrangler fast if I wanted to.
10. Nobody in my area goes my way.
11. No busses remotely close to me
12. No kids.

 

[Rmay635703]

1. All older cars and paid off
2. Safe as they were when new.
3.All easy to fix.
4. I commute 11 miles 1Way.
5.less busy than down the hill
6.Does having a class A count?
7. Don't have.
8.only the Toyota is full coverage
9. That's me. I couldn't drive a wrangler fast if I wanted to.
10. Nobody in my area goes my way.
11. No busses remotely close to me
12. No kids.

Tracking by insurance is only intended to increase rates, it may reduce your rate for a short period as a gimmick and then goes up after your trial.
Under 3% of folks save with tracking

 

[grampi]

I renew our policies annually and pay up front. Much cheaper than paying monthly.

I wouldn't say doing this is much cheaper. It is cheaper, but only by a few bucks. You're paying a little extra for the ability to pay monthly...

 

[MaximaGuy]

The whole insurance thing is a scam ... rates go up for no reason.
I pay $12K for 4 cars and 3 drivers... its a f..king mess!! The state legislatures have signed off on these rates!!!

 

[grampi]

It's legal because it's illegal to not have car insurance. One of the greatest racketeering ever.

I hate to say it, but insurance is almost getting to the point of big brother (the government) having to step in and regulate premiums. As long as the law mandates insurance, there has got to be an end to these ever increasing premiums...it's no wonder there are so many uninsured drivers on the roads these days, and the more rates increase, the more uninsured drivers there will be on the roads...it's a never ending cycle...

 

[Pablo]

Bill coming. Over $1700, started at around $800 in 2021

 

[demarpaint]

The whole insurance thing is a scam ... rates go up for no reason.
I pay $12K for 4 cars and 3 drivers... its a f..king mess!! The state legislatures have signed off on these rates!!!

It's a rip off alright, and many of the insurance companies are doing quite well in spite of fires and floods. In fact there are several financial advisors recommending investing right now in insurance companies because of their profits. There's a reason many love to hate on insurance companies. Warren Buffet is still doing well in his insurance holdings, disasters and all.

 

[MaximaGuy]

Nothing will help you and me. America is for the uber rich, laws are written as such.
One good thing is I am not paying for some home to be insured in FL. No one insures in FL homes and Dr. Ron wants the state to remove property taxes and pay for insuring home. Wrong ideas and misplaced theoies of who will pay. IMO if you want to be on a beach front in FL that is year after year hit with something - you as a homeowner pays, not me living in a desert where nothing happens.

 

[grampi]

Many love to hate on insurance companies, and BITOG is no exception. The fact of the matter is, most companies have slim profit margins that are similar to grocery stores (think 3% range). The cost of new vehicles as well as repairing vehicles is absurd right now, that is the true problem.

Slim profit margins? That's hilarious! Insurance companies have some of the highest profit margins (if not THE highest) of all businesses, and that comes directly from my sister, who is a licensed State Farm Agent...she said their profit margins are between 300 and 400%...

 

[dishdude]

1. All older cars and paid off
2. Safe as they were when new.
3.All easy to fix.
4. I commute 11 miles 1Way.
5.less busy than down the hill
6.Does having a class A count?
7. Don't have.
8.only the Toyota is full coverage
9. That's me. I couldn't drive a wrangler fast if I wanted to.
10. Nobody in my area goes my way.
11. No busses remotely close to me
12. No kids.

I thought you had a younger driver that just got their license living with you?

 

[grampi]

The whole insurance thing is a scam ... rates go up for no reason.
I pay $12K for 4 cars and 3 drivers... its a f..king mess!! The state legislatures have signed off on these rates!!!

If you ask them what's the reason for the increase, they give you the standard, cover all the bases answer. The rates have gone up in your state due to the increased cost of vehicle repairs/replacements. They've been using this excuse ever since Covid....

 

[MaximaGuy]

Its profit taking allt he way - my Lexus was totalled by Gieco and I bought it back. Totalled for no reason - this car would be shipped across borders or even states for much more than the payoff. Profit taking all the way - in this limbo I forked out $40K for a RAV4 (not knowing what these cumbags would do to the Lexus) that is so badly build (built in Japan) that if I go over 100MPH, I feel like the wind will take me away. I saw vides of $100K silverados and my jaw dropped - wonder how much it would cost to insure a home (from cost stdpt) on wheels.