What are y'all paying for insurance?

State Farm for my 2023 Tacoma, I pay around $370 every six months for full coverage. I got some discounts for auto insurance. Also, State Farm Homeowners, been with them for years.

 

State Farm always operates in the red. Their business model is to lose $ on their actual insurance products, but make it up in investment income. They are so large that they are able to operate that way consistently. For example, Progressive's goal is to make $0.04 profit for every $1.00 of premium they collect, meaning they want to turn a profit of 4% on the product. State Farm's goal is to lose about $0.04-$0.06 for every $1.00 of premium they collect, and then make their money by investing the huge pile of cash they have because they have so many customers.

However, there are limits to everything, and they are losing far more $ on their products than they want to, losing around $0.18 for every $1.00 the last time I saw the numbers. And that's where their business model becomes problematic. Because they don't care that they operate at a loss, they've never had to be good at underwriting. It's never been a focus for them. Well, now that they're losing "too much" on their products, they're not capable of implementing a long-term fix. It would require a massive culture shift, and it won't happen. Instead, they will jack up the rates as steeply as each state will allow them to until they get to the point that they're back to where they want to be...but they risk losing customers by doing that, which shrinks the pool of cash to invest, which reduces profitability, which forces them to figure out how to underwrite, which they will fail at, which will result in raising rates, which will make them lose customers...lather, rinse, repeat.

State Farm's business model would never be tolerated if they were a publicly traded company.

 

Fuck...I'm paying $3,774 thru Progressive with $500 deductible. With something they call "Diamond+ loyalty level.

Was in a wreck a couple years ago that wasn't my fault, and no tickets.

2019 Rav4
2018 Tacoma

 

but Florida, so normal

 

Insurance is outrageous here. Around 5 years ago my home policy was just under $700 a year with $500 deductible including hurricane damage. This year it was $3,314 for the same coverage with no claims.

 

This thread is pretty much worthless if you guys don’t post your declarations page for comparison.

 

Yea I got this Diamond Loyalty thing too. I'm in a major metro city ( Phoenix ) where all kinds of crashes
and theft and jackings occur. I wonder how credit score plays in. Mine is 871 as of a week ago. Plus I'm old
as the hills and don't work anymore so no daily commute for me.

I also have my teardrop covered via Progressive, and just got the bill and a notice that the rate dropped about $40 a year on that.

 

I pay more for insurance and registration than my brand new truck 10 yrs ago...... Zero accidents, truck has been paid off for a long long time.

Thanks California and the vast majority of the illogical, hypocritical, I D I O T S that live in this state that have somehow infected the rest of the country, I hope things can start to heal. The line item for uninsured (read illegal to the country) and underinsured motorist on my insurance has SKYROCKETED in the last 3.5yrs and is only going to get worse unless things change. I have even called my insurance company and shopped around and every single person I have talked to from the insurance companies are like yeah... well you live in an area (southern ca) that has a very high rate of people driving around who are not from the area and the liability for us the insurer is exponentially higher.

EDIT - If mods want to claim this as political this is just the facts of the matter. - Sorry the truth hurts.

 

This is for 6 months.

 

5 years from now, that homeowner premium will seem like a bargain in FL.

 

My old company still pays for my full coverage insurance with a $1k deductible which is around $80 a month with Allstate. Granted this is bundled probably with 5 other vehicles.

 

Correction....next policy renewal it will seem like a bargain based on my past couple years experience. Im not exactly on the coast either....25-30 miles inland.

Think its time to start seeing if you can drop hurricane coverage and just fortify yourself. Obviously house dependent. Block house/good shutters/good roof/no flood zone .... im sure i could save enough money to buy a new roof every couple years with the difference not even figuring in the deductible to the equation. The deductible is outrageous and if ever needed and they fight you tooth and nail to give you bottom dollar that wont even cover enough for a craigslist contractor. I think the only time ever needed i basically got ~$1500 towards a roof from allstate after all was said and done before i subtracted my time for the process. Im sure i was in the red afterwards.

 

Between that piece of the uninsured you mentioned, plus many who aren't in that particular demographic that drive uninsured anyway, and then the underinsured it's crazy. Plus with the cost of medical bills nowadays..I saw it up close a couple of years ago, my wife got rearended and has well over 100K in costs for care not to mention missing almost a year of work.

MA is a very expensive state (as well as your state of course, I think we're close in that regard) and as you said something has to give.