Letter from insurance company requesting mileage

[TFB1]

Originally Posted By: TFB1
Originally Posted By: dparm
It's State Farm, to those who asked.

I'm going to not return it and see what happens. Worst case, "oh I didn't know it was required."


I received same from SF approx two months ago for my pickup, yes I sent it back, now I've just received another one for same vehicle... Prob call my agent and ask him why they are wasting money double sending this stuff...

On the flip side they are paying for postage and I have nothing to hide, so don't see it as a BFD...


Well one of my agents assistance's just called and said they didn't receive my first statement back at home office, so would loose my low mileage discount if they didn't get the info soon... With that I gave her the current mileage and she apologized for them sending it twice... Also said I could just call in mileage if I ever got another form...

You guys worrying about big brother should get a life...

 

[dailydriver]

Originally Posted By: TFB1
You guys worrying about big brother should get a life...


Ironically it is one of the very few instances where I actually AGREE with the 'big gummint' HATERS/DESPISERS, albeit for different reasons, since I HATE 'big insurance', and all of the unlimited/un-regulated/'carte blanche' power they are given by the G-flag flailing, federal government haters in congress.

They will use EVERY/ANY chance they can to raise rates (and they will ALL do it ACROSS THE BOARD, so much for the 'competition' thing).
So if one agrees to the plug-in, and you do not drive to their 'liking' (like a conservative {as in DRIVING style, NOT political leaning}, 90 year old granny), here comes your 40% increase next year (or even at HALF year, if they can).

 

[The Critic]

Originally Posted By: dailydriver
Originally Posted By: TFB1
You guys worrying about big brother should get a life...


Ironically it is one of the very few instances where I actually AGREE with the 'big gummint' HATERS/DESPISERS, albeit for different reasons, since I HATE 'big insurance', and all of the unlimited/un-regulated/'carte blanche' power they are given by the G-flag flailing, federal government haters in congress.

They will use EVERY/ANY chance they can to raise rates (and they will ALL do it ACROSS THE BOARD, so much for the 'competition' thing).
So if one agrees to the plug-in, and you do not drive to their 'liking' (like a conservative {as in DRIVING style, NOT political leaning}, 90 year old granny), here comes your 40% increase next year (or even at HALF year, if they can).

Participation in the program is voluntary. However, shouldn't insurance carriers be allowed to charge appropriately for their exposure?

 

[grampi]

Originally Posted By: The Critic
Originally Posted By: dailydriver
Originally Posted By: TFB1
You guys worrying about big brother should get a life...


Ironically it is one of the very few instances where I actually AGREE with the 'big gummint' HATERS/DESPISERS, albeit for different reasons, since I HATE 'big insurance', and all of the unlimited/un-regulated/'carte blanche' power they are given by the G-flag flailing, federal government haters in congress.

They will use EVERY/ANY chance they can to raise rates (and they will ALL do it ACROSS THE BOARD, so much for the 'competition' thing).
So if one agrees to the plug-in, and you do not drive to their 'liking' (like a conservative {as in DRIVING style, NOT political leaning}, 90 year old granny), here comes your 40% increase next year (or even at HALF year, if they can).

Participation in the program is voluntary. However, shouldn't insurance carriers be allowed to charge appropriately for their exposure?


Why do they need to raise their rates anyway? I've read several studies on insurance companies and the finding were that insurance companies have THE HIGHEST profit margins of all types of businesses...on average insurance companies enjoy a 400% profit margin...seems to me like they don't NEED to raise rates, they're just being greedy...

 

[JethroBodine]

Originally Posted By: grampi

Why do they need to raise their rates anyway? I've read several studies on insurance companies and the finding were that insurance companies have THE HIGHEST profit margins of all types of businesses...on average insurance companies enjoy a 400% profit margin...seems to me like they don't NEED to raise rates, they're just being greedy...


Insurance companies charge "before" they give coverage. Then drag outgoing payments 30-90 days...then invest the gigantic pool of cash and collect even more profit. Then raise national rates for large natural disasters. 100% total scam artists. If you don't shop them against their competition then you get shafted. They know NO loyalty to long term customers many of whom get cancelled after a large claim. Just think about this: How many skyscrapers in the United States are built by insurance companies? Where did they get the money? They have no manufacturing plants...no farm land..no nothing. Just a big bank account.

Their job is to charge as much as possible and pay as little as possible. Then use slogans like: "Like a good neighbor" or "You are in good hands" etc etc.

 

[dailydriver]

^^^EXACTLY!!!

One of the reasons I went with a company which does NOT answer to Gordon Gekko like investors, but yes, I KNOW Nationwide are not necessarily 'angels' either, as a company.

 

[The Critic]

Originally Posted By: JethroBodine

Insurance companies charge "before" they give coverage. Then drag outgoing payments 30-90 days...then invest the gigantic pool of cash and collect even more profit. Then raise national rates for large natural disasters. 100% total scam artists. If you don't shop them against their competition then you get shafted. They know NO loyalty to long term customers many of whom get cancelled after a large claim. Just think about this: How many skyscrapers in the United States are built by insurance companies? Where did they get the money? They have no manufacturing plants...no farm land..no nothing. Just a big bank account.

Their job is to charge as much as possible and pay as little as possible. Then use slogans like: "Like a good neighbor" or "You are in good hands" etc etc.

Insurance companies take your money and place it into a variety of areas. For instance, we have to pay claims. The industry has not been doing well for a number of years due to cat losses and poor investment returns. The market was soft for a number of years and is now just beginning to harden. Take a look at this article:

http://www.insurancenetworking.com/news/...os-32718-1.html

Also, sometimes large claims will give you insight about exposures that were not otherwise known. If you found out about exposures with a risk that were not previously known, and those exposures are not acceptable, why would you continue to insure that risk? And lastly, we take care of our loyal customers and agents on a regular basis.

Originally Posted By: grampi
Originally Posted By: The Critic
Participation in the program is voluntary. However, shouldn't insurance carriers be allowed to charge appropriately for their exposure?


Why do they need to raise their rates anyway? I've read several studies on insurance companies and the finding were that insurance companies have THE HIGHEST profit margins of all types of businesses...on average insurance companies enjoy a 400% profit margin...seems to me like they don't NEED to raise rates, they're just being greedy...


I have not found the studies that you mention - can you please post them for our review?

This article can tell you that insurance companies are far from laughing to the bank: http://www.insurancenetworking.com/news/...os-32718-1.html

 

[Cujet]

So, what's the cost per mile, if the insurance company sets the rate for 7000 miles or less?

I have Allstate and my rate is indeed 7,000 miles per vehicle or less per year (by memory) . Since the purchase of my aircraft, I do drive quite a bit less...

$1800/yr, 2 cars.

OH, WAIT, that's 13 cents per mile, JUST FOR INSURANCE!

 

[Pop_Rivit]

Originally Posted By: Cujet
$1800/yr, 2 cars.


Hearing about costs like that makes me extremely happy with our $980/year for 4 vehicles.

 

[Durango]

Originally Posted By: dparm
I don't DD my car to work or school, so my insurance lists it as something like "not driven to work/school, 7500 miles a year or less". They occasionally send me a letter asking for the vehicle's current mileage and how many miles I expect to drive it over the next 12 months.

The letter says nothing about this being mandatory, nor has my agent ever demanded I come to the office so he can take an odometer reading. I've sent these in before without giving it a second thought, but lately I'm wondering if I am required to fill this out and send it back to them?


dparm,

My insurance gives me an annual form/letter to send back to them. I have no issue at all. I'm trting to save every penny I earn.

Durango

 

[TFB1]

Well Saturday I got a letter from SF stating since I had not returned the mileage statement(I did return first, not second), I would be loosing the low miles traveled discount at next renewal... So I called my agent's assistant back and she said don't worry about it, I sent the info to home office and that notification was why she called me last week... Apparently they are on their toes over at the local office...

 

[Bill in Utah]

Originally Posted By: The Critic

Participation in the program is voluntary. However, shouldn't insurance carriers be allowed to charge appropriately for their exposure?


I'd not be afraid of giving them mileage numbers IF they rated by **ACTUAL** exposure.

I've driven WAY too many miles in my life and guess what, NEVER had a claim on something that I drive. But since I'm one of those "high risk" operators (drive many miles through mountain passes in all weather with deer every turn in the dark!) I get nailed in rates that they never pay off on.

So lucky for me, my current insurance company (for now) does not ask how many miles I drive other than if its a commuter, pleasure/recreational. I've been with them the longest in my life but will leave them in a second if I can get lower price or if they make it mandatory that I plug in some OBDII device.

Insurance is trying to figure out how to get the most from us. ANY data that they can throw at us to justify their rates is not needed for me.

Bill

 

[The Critic]

Originally Posted By: Bill in Utah

I'd not be afraid of giving them mileage numbers IF they rated by **ACTUAL** exposure.

I've driven WAY too many miles in my life and guess what, NEVER had a claim on something that I drive. But since I'm one of those "high risk" operators (drive many miles through mountain passes in all weather with deer every turn in the dark!) I get nailed in rates that they never pay off on.

Insurance is trying to figure out how to get the most from us. ANY data that they can throw at us to justify their rates is not needed for me.

Bill


It's great that you have not had any claims. This is probably true for most of my book as well. However, the purpose of insurance is to charge an appropriate premium and by doing so, you are "transferring" the risk to the carrier.

Your exposure is different than someone who drives through a busy metropolitan area on a daily basis. It is also different than a long-haul trucker. Different exposures carry different rates. If you do not like the idea of insurance, then perhaps you should consider self-insuring?