Insurance Ploy

Companies such as…?

We liked travelers, but they started to creep too far, went to California Casualty. Had never heard of them….

I'll name one I'm familiar with, Erie.
The only time that my auto rates have fluctuated is when we have purchased a new vehicle.
Even when we shopped it then, they still had the best rates by far.
On the house side, we have seen some creep, as coverage has increased with replacement value increases.
However, when coupled together with discounts, our premiums have been relatively stable for years.
For instance, we have full coverage on all four of our vehicles for $1010./yr, since we purchased our Pilot in '20.
Prior to that, I was at $844./yr for 4 years with our '06 Odyssey.
When I was working and doing high mileage, I was at $1395./yr for years with the same set of cars.
My FIL was paying $1100. on two cars with liability only with his previous company.
He shaved over $1600/yr off his home policy, with better coverage.
There are lesser known regional companies that are very conservative with what they write, and don't assume a great deal of risk.
Their premiums reflect that conservatism.
They generally are the ones that don't have a huge TV presence.
That is why a good independent agent representing a plethora of companies, or a good broker are valuable.
The best companies aren't necessarily the ones with a huge national exposure, with Flo's, Jake's, Gekko's, or weirdos driving yellow Dusters, being chased by an Emu.
 
(for others)
Getting GREAT prices for insurance is super easy, do something about it.
Log off BITOG
Start searching for insurance companies. Enter your information on at least 5 companies and get prices.
Find a better price, take out your credit card, pay for the policy, cancel your current company, current company will send you a refund for the used remainder of the term.

Easy stuff man! I dont get it, we dont discuss the difference in gas prices between Walmart and Mobil, just choose the cheapest rates.
No need to talk to an agent, let you fingers do the typing and spend an hour or hours of time on the computer.
NEVER fall for the BS discounts they say you are getting if you combine policies. Verify everything in pricing.
 
The price of eggs is probably not the best reference to increasing insurance rates...
My point being is that insurance rates are affected by inflation-which we have seen plenty of the last 24 months or so. Rising costs are not a "ploy". Now I'm burying this dead horse.
 
My point being is that insurance rates are affected by inflation-which we have seen plenty of the last 24 months or so. Rising costs are not a "ploy". Now I'm burying this dead horse.
And my point is that inflation is probably part of the increase, but not a 50% increase...the cost of doing business in the insurance industry hasn't gone up 50%...
 
My point being is that insurance rates are affected by inflation-which we have seen plenty of the last 24 months or so. Raising costs are not a "ploy". Now I'm burying this dead horse.
Inflation is only one component.

And my point is that inflation is probably part of the increase, but not a 50% increase...the cost of doing business in the insurance industry hasn't gone up 50%...

For USAA specifically, they’ve really increased their advertising and risk exposure. They used to be an insurance company for a small group. No ads. Low cost.

Now, with expansion of their clientele base, needed to grow and get the CEO more bonuses, they have a much higher risk group that they insure. To keep growing, they spend over $500 million a year on advertising.

That cost is passed on in the form of higher rates.

The higher payout with a riskier insured group is higher cost.

That cost is passed on in the form of higher rates.

Oh, yeah, there is inflation, and costs of repair that have risen faster than inflation, and lack of parts, etc…
 
Inflation is only one component.



For USAA specifically, they’ve really increased their advertising and risk exposure. They used to be an insurance company for a small group. No ads. Low cost.

Now, with expansion of their clientele base, needed to grow and get the CEO more bonuses, they have a much higher risk group that they insure. To keep growing, they spend over $500 million a year on advertising.

That cost is passed on in the form of higher rates.

The higher payout with a riskier insured group is higher cost.

That cost is passed on in the form of higher rates.

Oh, yeah, there is inflation, and costs of repair that have risen faster than inflation, and lack of parts, etc…
It's strange you use USAA as your example when they have been the only insurance company I've had that hasn't done the rate creep (or in my case, rate leap)...my premiums with them have been pretty steady for 25+ years...and I've filed quite a few claims with them...
 
It's strange you use USAA as your example when they have been the only insurance company I've had that hasn't done the rate creep (or in my case, rate leap)...my premiums with them have been pretty steady for 25+ years...and I've filed quite a few claims with them...
My rates with them took a dramatic climb about six years ago. Doubled in a couple years. I had no changes. No tickets. No accidents. No claims.

Why? What happened?

Well, I live in a huge military area. USAA expanded their eligibility to every young sailor/soldier/airman/marine. So, instead of being in a risk group of older officers, I was in a risk group of young, often dumb, kids who bought expensive cars and then wrecked them or got tickets.

The “claims experience” (their words, not mine) dramatically changed for USAA in my area. Lots more exposure. Lots more risk. Much higher incidence of expensive claims.

Note that I didn’t have a single claim, or ticket, during that time.

But because the insurance company was suddenly losing money insuring lots of young kids with new cars, the old guy with used cars got to pay higher, much higher, rates.

I switched to GEICO, who saved me about 55%.

Turns out that their “claims experience” spiked in my area, too. So, they doubled their rates on me, in the space of five years. When compared with USAA, GEICO was now more expensive.

So, I switched back.

I still pay far too much. $4,000/year. My area is terrible with claims. GEICO also insures young military. And I promise that many of them cost the company a ton of money.

Must be nice to have cheap insurance. That stopped being true for me several years ago. Doesn’t matter how clean my record is - my zip code, and the people who live in it - have changed the cost of owning a car here.
 
My rates with them took a dramatic climb about six years ago. Doubled in a couple years. I had no changes. No tickets. No accidents. No claims.

Why? What happened?

Well, I live in a huge military area. USAA expanded their eligibility to every young sailor/soldier/airman/marine. So, instead of being in a risk group of older officers, I was in a risk group of young, often dumb, kids who bought expensive cars and then wrecked them or got tickets.

The “claims experience” (their words, not mine) dramatically changed for USAA in my area. Lots more exposure. Lots more risk. Much higher incidence of expensive claims.

Note that I didn’t have a single claim, or ticket, during that time.

But because the insurance company was suddenly losing money insuring lots of young kids with new cars, the old guy with used cars got to pay higher, much higher, rates.

I switched to GEICO, who saved me about 55%.

Turns out that their “claims experience” spiked in my area, too. So, they doubled their rates on me, in the space of five years. When compared with USAA, GEICO was now more expensive.

So, I switched back.

I still pay far too much. $4,000/year. My area is terrible with claims. GEICO also insures young military. And I promise that many of them cost the company a ton of money.

Must be nice to have cheap insurance. That stopped being true for me several years ago. Doesn’t matter how clean my record is - my zip code, and the people who live in it - have changed the cost of owning a car here.
Where you live can make a huge difference in rates. OH has always been a lower rate area, which is why I find it hard to believe it's the factors Geico mentioned in my rate increase notice that caused my rate to go up so much...
 
Why not State Farm? Cheapest isn't always best.
When we moved to Minnesota from Utah 2 decades ago, I had everything insured with State Farm. After I received my first renewal notice in Mn, I was surprised to find my motorcycle insurance had more then tripled. I called my agent who said State Farm didn't want to insure bikes. I moved everything to other companies. My Progressive motorcycle policy is still much cheaper today than State Farm was after the big hike when we moved.
 
My rates with them took a dramatic climb about six years ago. Doubled in a couple years. I had no changes. No tickets. No accidents. No claims.

Why? What happened?

Well, I live in a huge military area. USAA expanded their eligibility to every young sailor/soldier/airman/marine. So, instead of being in a risk group of older officers, I was in a risk group of young, often dumb, kids who bought expensive cars and then wrecked them or got tickets.

The “claims experience” (their words, not mine) dramatically changed for USAA in my area. Lots more exposure. Lots more risk. Much higher incidence of expensive claims.

Note that I didn’t have a single claim, or ticket, during that time.

But because the insurance company was suddenly losing money insuring lots of young kids with new cars, the old guy with used cars got to pay higher, much higher, rates.

I switched to GEICO, who saved me about 55%.

Turns out that their “claims experience” spiked in my area, too. So, they doubled their rates on me, in the space of five years. When compared with USAA, GEICO was now more expensive.

So, I switched back.

I still pay far too much. $4,000/year. My area is terrible with claims. GEICO also insures young military. And I promise that many of them cost the company a ton of money.

Must be nice to have cheap insurance. That stopped being true for me several years ago. Doesn’t matter how clean my record is - my zip code, and the people who live in it - have changed the cost of owning a car here.
I'm fortunate that I live near a joint command base full of officers (and retirees come to think of it.) So USAA rates have remained relatively stable.

But your prior points about increased exposure are a valid concern. I'm not convinced USAA will remain a good deal in the future.
All those TV ads during football games cost money.
 
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