Vehicle insurance rant

[SecondRow]

You are too kind. That's the classiest way of saying I think you are full of shti.

It was 50 years ago, see. But it definitely happened.

 

[mh9162013]

You are too kind. That's the classiest way of saying I think you are full of shti.

Ha! I wish I were that clever, but no, I wasn't trying to say I thought he was lying.

I have a love/hate relationship with insurance companies, but if they sent out a letter like that, it wouldn't surprise me.

 

[Bravo52]

My State Farm Home Owners I just paid went up more than $200; 500 something to 700 something.

I asked why, they said inflation and the cost of repairing or replacing your home. I don't recall it going up over the last 10 years at all, maybe a few 10s or 20s but not something I noticed.

Don't forget the government's role in this as well. If the taxed value of the house goes up, the insurance has to go up as well. In some states there are caps on how much a tax can increase per year. I know my property tax is capped at NMT 3% a year...so, you guessed it, it's gone up 3% every year I've owned the property regardless of the actual value.

 

[Joekeyo]

My Florida homeowners on a small, old home is over $1000. Hurricane has a higher deductible. Welcome to paradise lost.

 

[cwbullet]

Health insurance is ridiculous, auto insurance isn't far behind. Just got the bill with a 25% hike. Now it's $499.26 for six months' coverage. Deductibles, $250 comprehensive, $500 collision (ending those two immediately). And this is State Farm which appears to be the lowest-cost option for most people. I'm not in the military or I'd go with USAA.

No doubt most of you pay a lot more than that...but compare: This is for a twelve-year-old Honda Civic valued around $9,000. That's over 11% of the car's value, per year, for insurance.

[Strange that UNinsured Motor Vehicle Bodily injury was just $31, while UNDERinsured Motor Vehicle Bodily injury, same limits, is over four times that.]

Like most drivers I think I'm/we're somewhat safer than average, but you be the judge. One major accident (admittedly my fault, totaled a $7500 pickup about eight years ago, no other vehicles and no one was hurt). Four or five fender benders that didn't involve State Farm at all. That's a half-century and a half-million miles of driving. Wife: one major accident in 40 years, not her fault. I talk on the phone while driving maybe once every other month; it makes me very uncomfortable to do so. Have never seen Geniece do so at all. We both pull over if we need to read or send a text.

An ABC report posited two important reasons why auto insurance has spiked over the last 3-4 years. Vehicles are getting safer and smarter, so naturally drivers are paying less attention to what they're SUPPOSED to be doing. And distracted driving, especially with phones but also with the new-and-improved (sarcasm intended) touch displays on most new vehicles. U.S. drivers were said to spend approximately four times as much time texting/reading texts (while driving) vs Europeans. A study showed that talking on the phone, hands-free or not, increases 4X the probability of accident.

Waiting to see what happens with my homeowner's insurance...

Say it again brother, say it again.

 

[afadeev]

I think most of the cost of increase is for the cost of repair.

That, and the increase in fraud.

I was paying for long-term airport parking at a large parking lot that shares space with a hotel a few months ago. In Park, trying to get the ticket recognized by the scanner. An older SUV pulls up and taps me from behind. Was he blind?

The driver gets out of the SUV and demands payment in cash, because he *saw* me at the hotel bar, and can *smell* alcohol on my breath, and I would not *want to* involve cops in my condition. Are you kidding me, right?

So I call the cops, and my insurance company, and they get on the case.
A few days later I get follow-up call from my insurance company, and I ask the claims agent how often does she run across fraudulent claims. In her own words - about 1 in 8 claims are deeply suspicious.

So yeah, there is also that.

a

P.S.: My auto policy rates are holding steady, but my home owners is due to go up by 30% for the next annual renewal cycle (got a letter a few months ago). No hurricanes, landslides, wild fires, or recent Godzilla attacks around these parts. Still +30%. I shopped around - mine is still the cheapest.

 

[bjphoenix]

Health insurance is ridiculous, auto insurance isn't far behind. Just got the bill with a 25% hike. Now it's $499.26 for six months' coverage. Deductibles, $250 comprehensive, $500 collision (ending those two immediately). And this is State Farm which appears to be the lowest-cost option for most people. I'm not in the military or I'd go with USAA.

That's the nature of insurance- first rule of business is insurance companies have a lot of money and they never lose money. Our car insurance went up so my wife switched companies. Insurance on my 17 year old Cadillac is higher than my 6 year old Jeep. Of course if your car is old enough you could drop collision coverage, or you could look into raising your deductibles. Our house insurance also went up so we are shopping around for that too. An insurance company will continue to raise rates on existing customers hoping they will hang on and pay it. Your only choice is to shop around for another company that will give you lower rates as a new customer.
I understand it can be difficult for insurance companies these days- all the lawyers advertising for million dollar verdicts in car accidents, cars that get totaled if you spill a glass of water in the wrong place, etc. Back when my father owned a car body shop you could repair almost any amount of damage to a car, and a lot of repairs were able to be done with used parts. These days cars drive through a deep puddle and they get totaled.

 

[mh9162013]

A few days later I get follow-up call from my insurance company, and I ask the claims agent how often does she run across fraudulent claims. In her own words - about 1 in 8 claims are deeply suspicious.

And the worst part? Insurance companies often can't prove a fraudulent claim is fraudulent (in a cost effective way), so they pay it out anyway.

It's kind of ironic: insurance companies will refuse to pay a covered claim, but then knowingly pay a fraudulent claim. They have their reasons, but it's still frustrating.

 

[Bravo52]

My understanding is many insurers are no longer writing homeowners policies in California and Florida. I know for a fact (I have an inside source) that State Farm is no longer writing new policies. They are keeping their current insured but if they drop for any reason, they will not pick them back up.

 

[vcp]

That, and the increase in fraud.

I was paying for long-term airport parking at a large parking lot that shares space with a hotel a few months ago. In Park, trying to get the ticket recognized by the scanner. An older SUV pulls up and taps me from behind. Was he blind?

The driver gets out of the SUV and demands payment in cash, because he *saw* me at the hotel bar, and can *smell* alcohol on my breath, and I would not *want to* involve cops in my condition. Are you kidding me, right?

So I call the cops, and my insurance company, and they get on the case.
A few days later I get follow-up call from my insurance company, and I ask the claims agent how often does she run across fraudulent claims. In her own words - about 1 in 8 claims are deeply suspicious.

So yeah, there is also that.

a

P.S.: My auto policy rates are holding steady, but my home owners is due to go up by 30% for the next annual renewal cycle (got a letter a few months ago). No hurricanes, landslides, wild fires, or recent Godzilla attacks around these parts. Still +30%. I shopped around - mine is still the cheapest.

Dashcam.

 

[teepot]

In the last 33 years I have been involved in two accidents. Both of which were clearly not my fault. First I was on an off ramp. I stopped at the bottom because I had no where to get into the traffic flow and was rear ended. The rear bumper of my Ranger was bent out of shape. The other driver had Progressive. They called me about having a new bumper put on. They wanted to put a bumper on from a wrecking yard. I told them my bumper was new before the guy hit me and not used and I would file a claim with USAA and they would deal with them. Had my dealer put a new one on and they paid. The other one was bizarre. I was in Idaho hunting with my friends. My wife was still active duty and our state of residence was still Idaho. I was coming down a narrow mountain road. About a lane and a half wide. Many of the corners were blind and you went up or down with caution and hugging the edge of the side of the road you were on. I was approaching a blind corner and going about 5mph. Around the corner on my side of the road was a Jeep Cherokee clipping along. I stood on the brakes, closed my eyes and let go of the wheel and was hit head on. Car had California plates too.. My front bumper was wrapped around the front of my truck and was pinching my tires. Grill and headlight broken. Luckily for me a forest ranger came along. He looked at the wreck and got a can of orange marking paint and outlined where my tires were. He used a mattocks to pull the bumper away from my tires and went down the mountain and brought a sheriff back. The Jeep was still in front of my truck. The sheriff gave the other guy a ticket. I was now 700 miles from home with a damaged truck. I did make it home in one piece. I called his insurance company to make a claim. They asked a lot of questions about how fast I was going etc. Clearly trying to get out of paying. I reminded them he got a ticket and was on the wrong side of the road. They agreed to pay. When I told them I would need a rental car I was told it was on me. I told them again about how the accident happened and if they didn't pay for a rental car I was going to call a lawyer. They paid for the rental in seconds. Now there is a dash cam in all three of our cars. The Mustang and the Explorer are front and rear facing. Somebody does something stupid and hits me I'm going to sue their pants off.

 

[prfesser]

I'd shop around for lower rates. You can do it yourself or have an agent help you (I can PM you the name of my agent if you're interested).

I've already done so, with the help of Consumer Reports and Geniece. For us, State Farm is less expensive than any company available to us.

 

[prfesser]

Back when I was on the BoD, Pat G summarized the insurance racket game con industry with wisdom that I've never forgotten:

"Insurance companies don't make money by paying claims. They make money by not paying claims."

Rocket-related P.S.: Pat deserves a huge thank-you from every rocketnut out there. His overall knowledge, business savvy, and bargaining ability kept TRA's insurance premiums manageable, back when we were hip-deep in an expensive lawsuit. (If memory serves he even wrangled a reduction in premiums at one point.) Perhaps we'd have been able to handle lawyers' fees plus insurance premiums plus TRA's other expenses anyway......but I'm heartily glad that we never had to find out! Thanks, Pat!!

 

[rfjustin]

Watched an interesting video linked here which went into detail regarding the insurance price hike.

Folks, watch this video, its worth your time.

 

[Antares JS]

Back when I was on the BoD, Pat G summarized the insurance racket game con industry with wisdom that I've never forgotten:

"Insurance companies don't make money by paying claims. They make money by not paying claims."

Rocket-related P.S.: Pat deserves a huge thank-you from every rocketnut out there. His overall knowledge, business savvy, and bargaining ability kept TRA's insurance premiums manageable, back when we were hip-deep in an expensive lawsuit. (If memory serves he even wrangled a reduction in premiums at one point.) Perhaps we'd have been able to handle lawyers' fees plus insurance premiums plus TRA's other expenses anyway......but I'm heartily glad that we never had to find out! Thanks, Pat!!

 

[Bravo52]

...Now there is a dash cam in all three of our cars. The Mustang and the Explorer are front and rear facing. Somebody does something stupid and hits me I'm going to sue their pants off.

That is great advice. Dash cams are well worth having. I guess they are a "double edge sword" but on balance, they are well worth it. I have them in all my cars. Even gave them to both of my children for their cars.

I could charge admission on Friday nights for folks to watch footage of the drivers in my area. The videos are great drama, tragedies and somewhat dark comedies all in one. Of course I'd supply the

 

[mh9162013]

Back when I was on the BoD, Pat G summarized the insurance racket game con industry with wisdom that I've never forgotten:

"Insurance companies don't make money by paying claims. They make money by not paying claims."

Rocket-related P.S.: Pat deserves a huge thank-you from every rocketnut out there. His overall knowledge, business savvy, and bargaining ability kept TRA's insurance premiums manageable, back when we were hip-deep in an expensive lawsuit. (If memory serves he even wrangled a reduction in premiums at one point.) Perhaps we'd have been able to handle lawyers' fees plus insurance premiums plus TRA's other expenses anyway......but I'm heartily glad that we never had to find out! Thanks, Pat!!

Yes, that's true. But the bulk of most insurance companies' profits aren't the premiums. It's the investment returns they earn off those investments. So if they pay a $10,000 claim, it's not the $10,000 they lose that bothers them the most. It's the fact that they now have $10,000 less to invest and earn a profit from.

 

[Rocketjunkie]

In the last 3 years, my car insurance has increased from $480 to $820 per 6 months and the minivan isn't getting younger. My home owner's insurance has doubled also. The county hasn't raised the millage rate but has jacked up the value and my taxes have gone from just under $1000 to a little over $2000.

 

[icyclops]

Health insurance is ridiculous, auto insurance isn't far behind. Just got the bill with a 25% hike. Now it's $499.26 for six months' coverage. Deductibles, $250 comprehensive, $500 collision (ending those two immediately). And this is State Farm which appears to be the lowest-cost option for most people. I'm not in the military or I'd go with USAA.

No doubt most of you pay a lot more than that...but compare: This is for a twelve-year-old Honda Civic valued around $9,000. That's over 11% of the car's value, per year, for insurance.

[Strange that UNinsured Motor Vehicle Bodily injury was just $31, while UNDERinsured Motor Vehicle Bodily injury, same limits, is over four times that.]

Like most drivers I think I'm/we're somewhat safer than average, but you be the judge. One major accident (admittedly my fault, totaled a $7500 pickup about eight years ago, no other vehicles and no one was hurt). Four or five fender benders that didn't involve State Farm at all. That's a half-century and a half-million miles of driving. Wife: one major accident in 40 years, not her fault. I talk on the phone while driving maybe once every other month; it makes me very uncomfortable to do so. Have never seen Geniece do so at all. We both pull over if we need to read or send a text.

An ABC report posited two important reasons why auto insurance has spiked over the last 3-4 years. Vehicles are getting safer and smarter, so naturally drivers are paying less attention to what they're SUPPOSED to be doing. And distracted driving, especially with phones but also with the new-and-improved (sarcasm intended) touch displays on most new vehicles. U.S. drivers were said to spend approximately four times as much time texting/reading texts (while driving) vs Europeans. A study showed that talking on the phone, hands-free or not, increases 4X the probability of accident.

Waiting to see what happens with my homeowner's insurance...

State Farm in California has dropped many insurance policies (especially fire and flood insurance) in certain areas due to heavy payouts. They are in it to make money and if the needle points in the other direction changes like this happen. CA has no fault (accident) which even makes the rates higher….they don’t really fight in court anymore over payback for accident damage, only body injury claims….this has also brought up rates due to everyone sueing everyone…..otherwise they just seem to like to share the blame instead of keeping your rates low. Many other insurance companies do the same.

 

[Grog6]

I drive a 1996 Mercury Cougar. My insurance is Less than $60 a year. I have another one I'm working on, and it's also going to be in that price range.

 

[cls]

Folks, watch this video, its worth your time.

why? what does it say? can you summarize it please?

 

[cerving]

Also, places like the Republik of Kalifornia where the state has limited insurance premium increases, while the cost of things the insurance must pay for when there is a claim goes up and up and up. Insurance companies are simply pulling out of the state, not writing new policies and looking for any excuse to cancel old ones. I guess they're also increasing what everyone else pays to cover their losses where they're still stuck doing business in Utopia.

You're thinking of homeowner's insurance... yes, companies are pulling out of CA, but it's because of people who insist on living in high-risk areas to the detriment of us suburbanites. After their quaint mountain homes burn down for the 4th time, or their cliffside house overlooking the ocean slides down the hill again, something is going to give. I gotta believe that there are places in the country that get flooded out all the time and have similar insurance challenges.

There's plenty of competition for auto insurance in CA, a minimum level of insurance is mandatory (as it is with most other states), but if you value your ride you're going to go full C&C. Yes, car insurance is expensive... and so is gas, maintenance, and the occasional break-fix. I just got done replacing the catalytic converter on my 2018 Hyundai Accent... a no-brainer, even though it was $3,000, because a new car is going to be $25,000+. It didn't hurt that Hyundai just replaced my engine at no cost for chronic oil consumption... that made the $3,000 decision pretty easy.

 

[rfjustin]

why? what does it say? can you summarize it please?

Short answer, auto theft rates (resulting in auto insurance claims) are through the roof.

 

[vcp]

Dashcam.

To elaborate, my guilty pleasure is watching YouTube dashcam videos. I am astounded by the number of hit & runs, and situations where the other driver claims fantasy causes for an accident. Any dashcam you use must be able to resolve license plates. The channel I watch regularly is Wham Bam Dash Cam, which is well-curated, even though the narrator is a bit of a dork. The comments section of their videos recommends some of the best dashcams. I know it's a bit of a cliche, but I really think that watching these has made me a better driver. (There are several other good Wham Bam channels too.)

 

[KenECoyote]

My wife and I have had the same auto insurance for over 30 years (currently covering 5 cars) and never had any speeding/moving violation tickets nor any claim in that time.

One night I was driving my daughter home from college near midnight on an empty 65mph unlit highway in light rain. Next thing I knew, right around a big curve there was a huge spare mud tire right in the middle of the road in my lane (it was all black on a black unlit road, so I didn't see it until it was too late). I had a split second hesitation about whether or not to swerve to try to avoid it, but in my mind I played out a scenario where the tire is too big and I'd rip off one of my front wheels at ~50mph, Plus swerving at high speed on a lightly wet road can lead to much worse.

So I yelled "HOLD ON!!!" to my wife and kid who were sleeping, braced, aimed for the center of the tire and slammed on the brakes full force. I still hit it, but manage to eventually screech to a halt and pull over on the shoulder with the tire still under the vehicle.

When we stopped my wife yelled "THE CAR IS ON FIRE!!! GET OUT! GET OUT!!!" and ran out. But I knew better and said hold on... it was white smoke, so likely just the rubber burning on the roadway. I also checked all my dash lights and everything seemed ok. No fire.

Ahead of me on the shoulder were 3 other cars. All were totaled since every one had run over or crashed into the same tire. Lucky for me, the front bumper guard I installed (due to deer) helped take up a lot of the impact. My exhaust and header was a bit ripped and damaged, but I was the only one able to drive home.


I thought it'd be a simple insurance claim....

Insurance: Did the owner of the tire stay around?
Me: No.
Insurance: Then it was something avoidable and it's your fault. We won't cover it.
Me: So if the owner of the tire was there, it's not my fault?
Insurance: Yes.
Me: Three other cars before mine all hit the same tire. It simply wasn't avoidable.
Insurance: Sorry, in our opinion it was avoidable.
Me: So if I had tried to avoid it and crashed, it wouldn't be my fault?
Insurance: No, it'd still be your fault.

My wife was very angry and made a heated post on the insurance's Facebook page. Shortly after we got contacted and they agreed to cover everything. Repair bill was almost $6K.

Insurance companies suck.

 

[cls]

Short answer, auto theft rates (resulting in auto insurance claims) are through the roof.

thanks

I guess you've heard about the CAN bus hacking on Korean cars, how they are stolen. here's one example of thousands

https://www.mprnews.org/story/2024/...report-car-theft-after-free-security-upgrades

also here in CA we're seeing lots and lots of catalytic converter thefts. $3000 to fix, weeks and months to get parts for some models. Insurance companies trying to not pay. they aren't allowed to drop you after a claim, quid pro quo for the mandatory insurance law, but they find ways... already happened to many folks I know.

 

[afadeev]

To elaborate, my guilty pleasure is watching YouTube dashcam videos. I am astounded by the number of hit & runs, and situations where the other driver claims fantasy causes for an accident. Any dashcam you use must be able to resolve license plates. The channel I watch regularly is Wham Bam Dash Cam, which is well-curated, even though the narrator is a bit of a dork.

The last time I watched something like this on YT, it was a dashcam of a driver barely avoiding a tank crossing a highway somewhere in Eastern Europe.
I figured it will be easy to find and post here. Wow, was I ever wrong.
There are scores of tanks-on-highway videos on YT, with alarmingly too many recorded in the US. Still haven't found the one I was looking for, but this will give you an idea:




a

 

[teepot]

If you like dash cam footage watch some from Russia. They don't even try not to hit each other. $3000 for a catalytic converter. That's unbelievable. No wonder they are getting stolen in such huge numbers. I wonder how much the crooked recyclers pay for them. As for car thefts, I have seen a few videos about how criminals steal cars with push button start. It blew my mind. They have a flexible antenna that boosts the fobs signal and another crook is able to open a door and push the start button. It takes less that a minute to steal a car that way. Not only does it happen in the US it happens in the UK too. When I saw the first video I asked myself, how did they know how to do that. I know that all criminals aren't stupid. But that method of stealing cars seems high tech. Also what do they do with the stolen car? Is it like Gone in Sixty Seconds? Are they filling orders?

 

[Bravo52]

Insurance companies suck.

What insurance company was that Ken? Sounds like one to avoid.

 

[Blast it Tom!]

If you like dash cam footage watch some from Russia. They don't even try not to hit each other. $3000 for a catalytic converter. That's unbelievable. No wonder they are getting stolen in such huge numbers. I wonder how much the crooked recyclers pay for them. As for car thefts, I have seen a few videos about how criminals steal cars with push button start. It blew my mind. They have a flexible antenna that boosts the fobs signal and another crook is able to open a door and push the start button. It takes less that a minute to steal a car that way. Not only does it happen in the US it happens in the UK too. When I saw the first video I asked myself, how did they know how to do that. I know that all criminals aren't stupid. But that method of stealing cars seems high tech. Also what do they do with the stolen car? Is it like Gone in Sixty Seconds? Are they filling orders?

Yes, they are filling orders. Chop shops are where the big money is in stolen cars, it's not just kids going for a joy ride or some desperate soul that needs a car.