Insurance advice

The 3G trucks are more expensive to insure than the 2G trucks. My policy went up $200 on the 2016 versus the 2013. The accident that totaled my 2013 was not my fault so it didn't hit my insurance.

Highly recommend the new car replacement option, at least for year #1. I was hit in my wife's CX-5 and thrown into a utility pole which totaled the car. I ended up losing $12 versus what we paid for the car (including dealer add-ons and aftermarket accessories) all said and done and the increase in the premium was only $50/year and included upgraded rental car coverage.

 

I have heard stories where folks insurance went up even though they were not at fault in the accident, any one in the industry want chime in on this, is it true?

 

My policy renewed post-accident (but before I got the new truck in hand) and my rate class and discount codes were unchanged. So unless there's a way they're changing things behind the scenes my "driver rating" was no different than it was pre-accident.

I'd be curious to hear how it works behind the scenes.

 

My brother got rearend late one night sitting at a stop light, other driver was drunk. Truck was fixed but his rates went up.

 

That probably varies from company to company.

I think the way we handle it is pretty common. We use not-at-fault accidents when we are determining eligibility (whether we will write the policy or not) but they have a much lower weight than at-fault accidents. Once the policy is written, not-at-fault accidents don't impact the premium, however.

 

My 16 actually ended up being less than my 12 here in NC with Geico.

 

There's nothing inherently bad about insurance companies. Try living life with out auto insurance, and see how you like it when someone hits your car without insurance. It's all about cash flow. I'm not sure about other states, but in Texas you don't HAVE to have auto insurance. You can out up a bond and a large cash deposit, and you can go without auto insurance at all. Most of us don't have that kind of cash. Those that do, almost all of them have auto insurance. I had a client that had that setup. He bought his maid a new car to drive, and she totaled it within a month. $25K poof gone. Plus the cost to replace the car she hit.

It is frustrating when your rates go up without an at fault accident. I had a couple non-fault accidents (one wreck, one theft) and the insurance told me they don't figure those into my rates, but coincidently my rates went up a lot right after those claims. It's a shame that people are willing to pay a couple grand out of pocket for a minor accident, because they are afraid they will pay for it for five years.

It's called "the way it is".

 

I believe auto insurance is one of the few things that it doesn't pay to stay loyal to the company. The formula for what they determine your premiums is different from company to company. It would be nice if it was written somewhere which company is best for which demographic. It's one of those things that you just have to comparison shop every few years.

I've heard that married people are charged less for auto insurance. It seems illogical, since unmarried folk are less likely to have children and people without children are generally better drivers.

 

You can't dispute the fact that Insurance companies are crooks, and out to rip you off.
It's a for-profit business, and it's a cash cow.
This is despite how utterly miss-managed all insurance companies are.
They have no problem taking your money, but when it comes time to pay a claim, they spend more money trying to get out of it than it would cost to just pay.
Insurance companies collect over $100 in premiums to every dollar they spend on claims.
Out of that same $100, the spend $6 on advertising.
That's right, they don't want to pay for your loss, but they will pay 6x that much to make a funny commercial.
Geico spends 1.2 on advertising every year.
Why? To replace all the policy holders they loose when they cancel because of their poor claims experience.
They spend more money trying to replace customers than it would cost to keep them by just doing the right thing.
Then when they need more money, to cover their poor decision makeing, they raise everybody's premiums without cause.
It's a complete joke, legalized extortion.

 

we kept having that problem in Oklahoma, rates kept going up and up. company said it was due to other drivers in the area and state having high claims (common for hail damage in the state). I understand it's a business and they have to make money too but I became a giant thorn in their side until we met at a middle ground on rates (this was before my tacoma was totaled). we had also been driving for over 10 years with ZERO claims, not even a windshield, and had been with the same company almost as long so we had a little bit of a leg to stand on.

try shopping around. Check out some non brick/mortar companies like Esurance. If you can swing it, most companies allow you to pay in full and get a decent discount (esurance was 15-20%). For us, 2 vehicles, both under 5 years old and paid off with full coverage was about $650-700/6 months doing it that way.

If you don't have renter's insurance, try quoting that from the same company. A $65/yr policy when we were in an apartment in San Diego actually saved us about $50-60/6 month period on auto insurance once bundled. In the end, we came out ahead.

 

Actually, I can dispute that. You're numbers came out of your ass and you're speaking in absolutes.

While every insurance company is different these are real numbers for the insurance company that I work for which has typical results for the industry.

For every $100 that we take in in premium, we spend about $65 in actual checks to settle claims. That leaves $35. Of that $35 roughly $30 is spent on salaries, agent commissions, third party claims adjusters in the field, building maintenance, utilities, etc. We don't advertise so that premiums low and in turn we expect our agents to actually sell the product. It's an old school insurance model that the online companies no longer use.

In a good year, we have roughly $5 in actual profit for every $100 that we bring in in premiums. In an average year it's closer to $2. In a bad year it's negative. Almost all profit comes from investing the original $100 and collecting interest until the time comes to pay that $100 out in claims.

You are right about it being a for-profit business model. Insurance companies aren't charities. With that said, the numbers that you throw out are not typical for the industry.

If you don't believe me, do a little research. Google is your friend. Even Wikipedia has a pretty good explanation about the insurance industry's business model.

 

It's a free market, find another company if you feel your rates are too high. The argument is basically a communist vs free market argument. We spend billions more in the US on marketing than a communist country, yet somehow their economy's keep failing. Yes the insurance board raises and lowers the max insurance companies are allowed to charge, but competition is the check and balance. Some people just hate large companies and like to feel "the man" is stepping on them. Try moving to Mexico or any South American country, where insurance isn't required and see how you like it. Everyone buys P.O.S. cars because they can't afford to insure a nice car because no one has insurance.

 

If you have a good driving record, then Amica is by the far the lowest cost insurer that I've run across. I've cross shopped them with every other major insurance provider and I couldn't find anyone that came close to their estimate. It's a mutual insurance company, so depending on the state you might even be eligible for a dividend check at the end of the year too.

I'm in Houston, Texas with some of the highest auto insurance rates of any city in the country and I pay ~$700 annually to insure my 3rd gen (high deductible / high coverage limits). I highly suggest looking into them for any of your insurance needs...

 

Your numbers are your numbers, and are in no way representative of the industry as a whole.
Clearly you're company isn't a top 5 carrier, which make up the majority of the market share in this country.
It is an absolute truth that these companies spend more annually trying to control claims costs, and increase their market share/offset attrition than they would taking care of their existing policy holders and growing organicly thru exceptional service.
I appreciate your efforts to dispel misconception of insurance companies, based on your individual experiences, but just because your personal experience differs, it doesn't mean you are correct.

 

I'm surprised Insurance Companies make any money with there being so many TV lawyers that Big insurance companies are frightened of.

 

What kind of logic is this?

 

It is illogical. I let my, "I don't get a discount for being married," attitude cloud my judgement and typed some nonsense. On a serious note, my parents are not going to win any great driving contests.

 

Is that because they won't enter the contest?

 

Obviously!

 

They must not like coastal NC. Pay ~$350 every 6 months with Geico for 100/300.