Ask an insurance expert: the insurance non-bs thread

i live talking about insurance, the company i work for is great and i own a ton of company stock. but yeah, insurance companies are out to make money and sometimes people aren’t treated how they should be. geico is owned by warren buffet.

it’s a free market so we’re all free to switch when we want to. but in your example, credit is going to be tough across the board. most companies use your credit (in most states) as a rating factor. but, some companies will let you request they run your credit again to possibly lower your premium.

 

Sadly, I truly believe you are right. It’s a cold hard reality.

 

The irony is they want people in my situation to work so you are not a liability on the "system" and you are not living off of the "system" but they won't give you the resources to get the things you need to stay out of the "system".

 

Counterpoint. There aren't a lot of low deductible low out of pocket maximum health insurance options now. Even if people think it's good health insurance you could end up with thousands of dollars in medical bills after an injury accident. If you can absorb those costs with little to no stress on your budget or savings then fine med pay might not be an important coverage. If not med pay could be a big financial relief after an injury accident.

Other important facts are med pay pays out near immediately as bills come rolling in. If your not at fault and hurt it could take months or longer for a liability case to settle leaving you in most cases responsible for the doctor's bills in the meantime. If you're at fault and hurt nothing else on your policy will pay for your injuries.

Pip limits and options vary widely by states that offer them so won't get into that.

 

well, i forgot to mention that med pay and pip can in fact, be supplemental to your own health insurance AND “after all other coverages have been exhausted”. this could vary from company to company. so in that case it would not start paying first, if at all.

and not only that but in some states you can have a policy cancel on you real quick for too many injury claims. then you get a higher rate when you start quoting around. so those are not coverages i advise people get unless they have no other options.

 

So.. if you have bad credit = your a bad driver?

 

no. if you have bad credit = you’re not as responsible as someone who has good credit.

 

I still don't see how your money management impacts your driving.

 

it’s been proven that those with worse credit are more risky in general.

 

So I'll use myself as an example...

White Male, 35-40, Married, kids, Florida Resident, medium credit score, 0 moving violations, 0 auto claims, 0 parking tickets, spotless driving record since my drivers licence was issued 20 years ago.

I should pay more insurance then my counter part with excellent credit and numerous auto claims, lots of moving violations... etc.?

 

you can’t compare yourself to anyone else. that’s mistake #1. there are way more rating factors that you don't know about.

 

So a spotless driving record has no impact on how they rate you?

 

Not trying to pick a fight, just curious.

 

i never said that. but it’s just one of probably 100 different rating factors.

 

here are just a few rating factors most people don’t agree with. but they’re wrong.

highest level of education
occupation
zip code
miles driven per year
credit
marital status
resident relatives
not at fault accidents
comprehensive claims
lapse in insurance
your vehicle
how honest you are when you do a quote.
your insurance history (including payment history with another company).

 

No offense to you and not to insult your experience but I don't buy that. In the past 15 years my credit has risen from 530 to 820 and I didn't pay anymore then than I do now. Nor has my insurance premiums gone down as my credit has gone up.

 

Then with a credit of over 800 my fucking insurance should be free!! Using your credit as a way of raising and lowering you rates is bullshit!!!

 

insurance premiums may not re-rate themselves for some of these factors. you might have to call your insurance company and ask to re-rate or re-quote you. you also have to understand there are many other things that influence prices, besides credit. and, prices can literally change every single day. not fair to compare prices today vs 15 years ago no matter what’s changed. prices of avocados went up for me this weekend.

there’s a reason why credit is an acceptable rating factor in most every state.

 

insurance companies don’t even use your fico or fako score. so that’s irrelevant.

 

Ok, so everyone with great credit scores call their insurance companies tomorrow and demand a better rate because of our great credit scores. Bet nobody gets a better rate.