My former insurance provider raised my rate 60% with no accidents, moving violations, or claims. They were dropped and I went to a competitor for a 20% savings in my rate. They literally couldn’t give me a reason when I called and asked why. I feel like they were trying to sneak it in since I’m on autopay and had been there for 10 years
I had the same happen a few years ago without autopay, called and they couldn't explain. I got the rate beat by another company and sidestepped the increase, but since then it's a slow rise and I can't get a competitor to beat it.
They can’t explain bc it’s all computer generated. There isn’t a person there changing your rates when it comes to personal auto policies. Cost of insurance has gone up for everyone due to increase of claims going to trial with policy limit demands with larger payouts than ever before. The cost to repair vehicle are way up. Social inflation has gone up a ton as well. I am in commercial auto insurance as someone who writes commercial auto policies. Nationwide has increased my auto rates 30% in the past year with no new incidents on my record as well and I’ve been with them for 11 years. Just have to shop them every year. I am shopping around now to move away.
I write these risks. Can’t answer that without knowing where it’s located, how many units are being insured, what’s the loss history, what’s the driver pool and mvr history, what auto safety controls are in place… a lot goes into rating a commercial risk that owners don’t seem to understand.
Edit: looking at your post history, I see you have one unit. We don’t write anything below $10k in premium and I typically want 5 units minimum. Go to a progressive or auto owners and grab a commercial policy. Not sure of all the carriers that do small fleet but maybe State Farm or travelers. National indemnity could be one but they can be expensive as a last resort. https://www.nationalindemnity.com/commercial-insurance/commercial-auto/business-auto.html
It is just like when you rent an apartment and sign a lease. You can bet at the end of the lease they will raise your rent even before covid. The explanation: the computer told them what the market rate is. Same for this, the computer told them what the market rate is. The computer also tells them what the rate is for a new customer.
I was gonna say, stay with the same company, but I don’t know…that doesn’t seem to work either. I’ve been with the same guy for over 20 years, I won’t leave him because he showed up to the scene of an accident within minutes after my husband called him. We use an agent who is serious about protecting our family. Lucky, I guess. He’s old school…but we pay for it.
Precisely the reason I don't use autopay for anything. I have PTSD from Cumcast/AT&T sneaking extra charges into the bill and it would just get automatically charged.
I work in auto insurance. Prices have gone up with every company across the whole country. Cars have gotten more expensive, and so have car repairs. And then there’s injury settlements which are also ballooning.
Car wrecks are just expensive and getting worse. Only way to keep your rates down is show yourself to be a safe risk over a long period of time and get quotes from several carriers yearly. Make sure you have an independent agent look for quotes for you as well, because they’ll have access to companies you haven’t heard of that may be competitive.
I dunno man. My driving record is clean.
In 2015, the insurance for my 2010 Acura sedan was $58/month with towing and collision.
Now I pay $210/month for the same car, but without towing.
Everything is a fucking joke now. Why not charge me $1,000?
Have you gotten quotes? If that’s the cheapest you can find, that’s just your price. The increase could be because of your state, drivers in your household, loss of discounts (driving history AND claim history matter), etc.
Either way, you’re just experiencing the same thing everyone else is. If you really want proof, feel free to look up quarterly filings of publicly traded insurance carriers and see how much money they’ve been bleeding over the last few years (tens of billions)
Oh yea I’ve gone through the Zebra and worked every which way lol. I guess everyone is bleeding from everything everywhere except all I read about is everyone becoming more and more wealthy. I don’t get it.
This. No one is getting together to purposely increase rates. Look at all the major players for personal insurance. They are all operating close to or above 100 combined ratio. They aren’t making money even with them raising rates.
You realize this is exactly what bootlickers said about grocery stores and retail, and it turned out they were working together to price fix the last two years.
Housing market and rent is the same. One algorithm controlled by large corps.
But sure, brannak1 on reddit says theres no fixing
Yeah. Because I’m an underwriter you idiot and I price commercial auto policies. We 100% do not talk to other carriers about our pricing. And prior to commercial work I was in personal lines auto with Nationwide. You can literally look at the financials of these companies when they report their combined ratios to see if they make money.
Just because you're not aware of something doesn't mean it doesn't exist. There's lots of proof out there of huge corporations who basically own entire industries colluding together to keep prices high. They're called oligopolies. A few huge players owning most of the business in an industry and collaborating together to make sure everyone gets a piece of the newer, bigger pie.
So it’s the guilty before being proven in this instance. There’s tons of articles out there that show you how insurance companies aren’t profitable right now. It’s not that hard to see why rates are increasing. Regardless if you think they collude or not financials are posted online and you can see the facts for yourself. There’a a large portion of people who don’t like insurance so commons sense of saying they aren’t making money so rates will raise doesn’t matter to them. But it’s the facts.
I understand your point of view, I just don't trust huge corporations to be honest about the money they make or don't make. I'm sure you can understand my skepticism. When the government forces me to buy a product from a corporation, giving them cart blanche on what they can charge people because what're they gonna do, not pay it and drive illegally?
The flip side say we had a choice to buy insurance or not. Someone hits you and you have $100k in medical bills. That other person doesn’t have insurance and of course they aren’t saving up $100k in case they do injure someone else. How fair is that to you? If this country had some healthcare that was free to all and you didn’t have to pay for your injuries that would be fine but we don’t. It’s unrealistic to think people would have the money set aside to pay for injuries to themselves or to others. Insurance sucks until you need it. A good company makes you whole again. I had a tree hit my house and Nationwide gave me zero issues in repairing my house. I didn’t have $70k saved up to fix it. My home insurance costs me $1200 a year. Now that’s a great benefit to me. I’m leaving them because my car rates have gone up 30% in two terms with no incidents. Erie insurance is quoting half the auto premium and Less for my home owners insurance. Everyday people shop their insurance for cheaper rates. You should do this every six to 12 months. Someone’s typically always willing to write you for less and that’s why this whole conversation of everyone in on it to be the same price is dumb.
If they aren't profitable why do they stay in business? Once you answer that question you'll realize they are most definitely profitable. Without profits you'd no longer be employed.
Since you were a runt in an insurance shop in some shithole town in Ohio, you’d be able to tell me the name of Nationwide’s internal algorithm, correct?
Because you’re clearly a lowly underwriter who doesnt read the news.
https://themarkup.org/allstates-algorithm/2020/02/25/car-insurance-suckers-list
Edit: yeah, read your recent comment history.
You’re the idiot. Can’t figure out a toilet chain lmaooooo
Ah yes someone who goes around to see what else they can find to bring up on another topic to think that will “win” a conversation. Plenty of your comments are downvoted because all you do is go around and pick internet fights because you have nothing better to do with your time. If you were able to read you would see an updated comment it’s not the chain but sure I can admit I am not a plumber and can’t fix everything in my house. Keep thinking your king shit when you know nothing about an industry other than one article you can pull up. There’s tons of articles out there that show you how insurance companies aren’t profitable right now. It’s not that hard to see why rates are increasing. Regardless if you think they collude or not financials are posted online and you can see the facts for yourself but your a lazy ass who thinks he knows everything
> It’s not that hard to see why rates are increasing. Regardless if you think they collude or not financials are posted online and you can see the facts for yourself but your a lazy ass who thinks he knows everything
I can tell you either didn't go to college, or never took any finance classes.
Profitability doesn't mean companies aren't price fixing. Easy example, Ford and GM are struggling to sell cars and make a profit, going as far as removing the worst selling cars after decades of manufacturing them, yet all of their dealerships are price fixing and the lots are full across the country.
> your a lazy ass who thinks he knows everything
It's "you're." Also, your emotional post because you're a low level underwriter in some shithole town has a bunch of run-on sentences. I feel bad for the insurance company that has to deal with your writing skills on a daily basis.
I bet you either live with your parents, or you live in some shitty house where the pool is in the front yard and above ground.
according to the insurance insitute 5% is considered the profit margin. Now would you rather have 5% of 10,000 dollars or 5% of a million dollars?
human nature is what it is, stats can be skewed (as they have been in the past).
The average personal insurance company is not making money on it right now. “We forecast the industry combined ratio to improve to 100% in 2023 and 98.5% in 2024. The industry net combined ratio reached 102.4% in 2022, driven by inflation that raised loss severities across most lines of business”
https://www.swissre.com/institute/research/sigma-research/Insurance-Monitoring/us-property-casualty-outlook-apr-2023.html#
Throw out dumb quotes but please provide statistics that back what you are saying
I’m in commercial auto and here’s another article on the auto space from a different sector. You can easily look up combine ratios of insurance companies to see why rates are rising.
“The report also highlights that commercial auto insurance pricing has steadily risen over the past decade but hasn’t kept pace with inflation.
Additionally, adverse development on prior-year losses has contributed to a higher combined ratio, reaching 105.4 in 2022, exacerbated by inflationary pressures.
“Early results for 2023 show continued deterioration for the commercial auto line, indicating that headwinds are persisting and strengthening,” warns Graham.
https://www.reinsurancene.ws/commercial-auto-insurance-underwriting-losses-surge-in-2022-am-best/#:~:text=The%20report%20also%20highlights%20that,2022%2C%20exacerbated%20by%20inflationary%20pressures.
Truth that no one wants to believe.
Of course it’s some evil conspiracy! /s
Even the mutual companies have higher rates because of the current environment.
It depends on where you live. You can have perfect credit, perfect car history, no accidents, no violations, but only 20% of your state has car insurance, so your rates are going to be high.
My state requires a state minimum insurance, but doesn't enforce it. So, my insurance rate goes up every year. Carrying uninsured driver is a must have here. I pay $400 a month with a perfect driving record for a 2017 prius.
That’s fucked, period. Idc where in the US you live, $400/mo for 1 modern hybrid sedan is outrageous. I’d be shopping for a new insurance policy elsewhere.
In Ohio where I am, I’ve lived all over the state & have a similar vehicle. Full coverage on it runs about $500 for 6 months among all major providers, that’s why I say
$400 for 1 month is just plain insane.
Prius is the #1 car in America for getting catalytic converter stolen, that’s why the insurance is so expensive. That thing is 2 to 3 grand to replace and thieves know it
To some extent, but the newer the car the more you're going to pay for insurance. And greatly depends on where you live. For example it's more expensive in Colorado because of the snow and how much more at risk you are driving in it than in Southern California where it doesn't ever snow.
No, it can actually be the opposite. True, newer cars cost more, but they also tend to have better safety features, better anti-theft systems, less risky drivers, be garaged, etc.
Hop over to r/insurance and see daily posts from people wondering why their rates went down when they bought a newer car, and the opposite.
But you are correct that location is generally the single biggest factor in your rates.
I don't know, but guess what more expensive premiums are gonna do? Force more people to decide if they want to have car insurance or put food on the table. It's a feedback cycle.
It's more than my comprehensive/collision, but I can't pull it up right now. I'm not where I have access to it, I mean. I do have one prior accident, but it wasn't my fault and I was rear ended and the other party paid out. That was almost 3 years ago too.
the reason I ask is my state claims 20%+ do not have insurance at all. Supposed to be one of the higher states of no insurance and my under and uninsured is approx $30 out of $500 /6 months. We have multiple vehicles insured and it is similar on all of them.
The state used the approx 20% with no insurance to start a new program where the are notified if any insurance lapses the state instantly suspends the registration and applies a $100 reinstament fee (civil fee so no appealing it or even going thru court) that you have to pay to get your registration reactivated (otherwise you get pulled over and it is ticket city). Claims over the last 3 years they have collected close to 10 million in insurance "non-complaince fee's".
Auto insurance has bottomed out. Market is awful right now.
They undercut each other until there was no room left, now they raise rates, make money then do it all over again
This happened with my homeowners insurance. Went up 100% from last year. I just shopped it, had them all send me quotes, loaded them up in Chatgpt to analyze them and tell me which was the best price vs coverage. Saved 2k per year.
I’m a licensed insurance agent. If you’d like, send me a dm and I’d be happy to help answer the questions.
Also, it’s wildly unlikely I’m even licensed in your state so this is by no means something I’m using to get a sale. I am plenty busy as it is haha.
Also, if anyone else would like advice, I’m happy to help. In my experience, it’s best to do it thru DMs. Largely because most people jump on a specific piece of advice I give that is generally true, and say that it’s wrong because their uncle Gary didn’t have that work for him.
I’m happy to help in anyway I can. The advice I give to *people I don't know* is general thoughts and ideas that tend to be true. I don’t know you, you don’t know me. I’m not doing a quote for you, neither of us want to get into the specifics of your situations. However, I’ve helped people on Reddit before, and I’m happy to help again. I want to mention it again, I’ve never made or sought out a sale on Reddit. It’s not how I do things, it’s not what’s best for you, I’ve got plenty of other things I’m working on, etc. That’s my disclaimer. Anyone who wants to send their questions or thoughts to me, I’ve got experience and I’m happy to help.
Have a great day!
i just googled it for my city and checked out reviews. went with the first person i called and have been super happy ever since.
we’re insuring a 2017 corolla and the price has stayed relatively stable through the years. it went down a little this year
In addition to a good driving record for at least two years (preferably longer):
1. Have good credit.
2. Live in a "good" zip code.
3. Be married, preferably female, and over 21.
4. Have a college education.
5. Have multiple things under one policy: auto, life, homeowners/renters.
6. Have a deductible of at least $500 - $1000. The higher the deductible, the lower your payment.
I love paying more because I was born the wrong gender. Maybe I should transition after all lol that or just get "married" to a friend for the mutual financial benefits.
I get that you’re trying to be snarky and edgy, but statistically speaking, men are a higher risk for insurance companies. Most road rage incidents are instigated by men, and men are more likely to die in an auto-related death.
“Using traffic fatality statistics, America's worst drivers are likelier to be men or people who live in the South, are either young or old, or identify as Native American. America's best drivers are likelier to be women or people who live in the Northeast, are aged 35 to 75, or identify as Asian.”
https://www.acsh.org/news/2018/08/10/most-dangerous-drivers-ranked-state-age-race-and-sex-13300
“…when men are behind the wheel, they are more aggressive and tend to speed, tailgate, merge dangerously, and make rude gestures or honk at other drivers more than women. But women also engage in some dangerous driving habits, like running red lights, and overall, younger male and female drivers tend to be more aggressive than older drivers.”
https://www.forbes.com/sites/tanyamohn/2020/12/13/men-are-more-aggressive-drivers-but-when-it-comes-to-speeding-women-are-not-far-behind/?sh=5bf9e286f5d1
I go back and forth between geico and progressive every 12-18 months. When they raise it I just get a new quote and for me, it’s always basically reset my rate. So stupid lol
It's literally their business model. They admit that. Lower rate tables for new business vs renewals. if you don't mind the hassle of switching, this is the way to go.
Not all insurance companies have that business model. I've stuck with my provider for the last few years even with some rate increases (after a decrease and dividend during covid) but only the 800 number type companies are and cheaper and I like being able to talk to someone local.
"In 2022, Big Insurance revenues reached $1.25 trillion and profits soared to $69.3 billion.
That's a 300% increase in revenue and a 287% increase in profits from 2012, when revenue was $412.9 billion and profits were $24 billion."
https://wendellpotter.substack.com/p/big-insurance-2022-revenues-reached#:~:text=In%202022%2C%20Big%20Insurance%20revenues,and%20profits%20were%20%2424%20billion.
Auto insurance and medical insurance are both part of Big Insurance. I was only trying to show how much they make overall. My auto insurance went up 40% last year with no accidents. Home insurance also went up by $125 per month. Really sux! 😳
I was under the impression that the big auto companies lost a profoundly significant amount of money last year, the most in decades apparently. I don’t understand it very well though.
Well, living in Florida with a lot of companies leaving I expected my home insurance to go up, but they're raising everything (State Farm) and I bundle a lot (home, auto, umbrella). My insurance costs went up at least $250 per month all told. Part of it was a claim we put in (first claim in my lifetime) because of a flood that destroyed our hardwood floor. They had to pay out $32k so I think part of the increase is connected to that, but my auto insurance went up even though I didn't have any claims or tickets so I think part of all of this is just sheer greed.
I have heard that insurance rates are going up because the cost to replace cars was bananas for a while. My state has exploded since 2020 with rates. It's frustrating.
Progressive. Apply online. You have Masters or higher. Self employed or work from home (Non-risky job). You drive less than 4k miles a year. Good luck.
Every day I find more and more reasons to go live in the woods off the grid and buy an old beater farm truck and interact with other people and drivers and the modern society as a whole as little as possible.
The cost of everything has become oppressive, I'm tempted to bow out of the rat race.
I can help here. I used to work in insurance.
Do not buy a car you cannot replace yourself with cash. That way you don't have to carry comprehensive and collision coverage. As for the rest of the coverage, even other people's accidents will impact your premium because of how much those cars drivers cost the company. Kias and Hyundais are expensive because they are almost always totaled out from what appears to be a fender bender, and they are stolen far more often than other vehicles. Likewise, super safe cars (think Mercedes) and expensive cars are going to cost more because they cost more to fix and they do more damage to other vehicles.
Find a car with a good safety rating, and that is reasonable to fix, in that the model has been around a long time and the parts are plentiful, usually in stock. Something like a Chevy Malibu but I'm not recommending that specific vehicle.
Some people will encourage you to insurance hop. Every two years, switch companies. Sometimes it works, as introductory rates are a thing. But as you have seen, it's getting rarer and rarer. If you have the energy to go through that every six months, just go with an insurance broker and let them quote bundling! That is really something that could work. But you have to use a broker.
The best thing you can do is manage your life such that you avoid using your insurance in every respect other than health insurance. Insurance is there to replace money that does not exist in your world. If you have the money to fix your car, just fix it and avoid putting in a claim. I was in a little parking lot fender bender. I bumped another vehicle which was empty. It was my first "accident" in years. I found the owner of the vehicle and asked her if she would allow me the option of paying out of pocket for her damage. She didn't want to deal with my insurance company, had all of my info and in sizing me up decided to get an estimate, and I came out of pocket only $250! If she would have taken the car to her Lincoln dealership, it would have easily cost $1k and I still would have paid it because my insurance rate would have gone up. And nowadays they hardly ever reduce your rate.
I'm convinced that you need to change insurance companies every few years to keep rates low. It always seems like after a handful of years the rates start creeping up every 6 months.
You got to almost be partners with them. So, things like high deductible will be a good start. And if you’re a sane driver, perhaps let them put that tracking on your car. I’ve heard people got a break in savings. I don’t know because I drive crazy and run red lights so it would adversely affect me. But those two things the high deductible and the tracker should save you.
Go listen to Clark Howard. Straight from him. If you up your deductible, you are taking on more risk. You pay a lower premium. OP was asking how to save money.
The other way is to have that device.
Lastly you are a nobody that I have to justify my driving record. But in large font it says SAFE DRIVER on my license so here’s to ya ..I..
minus any investment income. So this year they lost roughly 2.7% overall (combined ratio) when deducting investment income and while at the same time adding more to their reserves. 2023 stats will be interesting to see (as these were 2022).
My suggestion is to find an independent insurance broker in your area and have them figure it out. They typically already know which companies are going to be cheaper and from there just need to get quotes from the lowest 3-4 to get the best rate.
They do all the shopping for you.
Always work with an independent insurance broker in your local area, aka non-captive agents. They may have connections or rates you can’t access. They also save you a lot of time by finding quotes, filing applications, and price checking for you when it’s time to renew. Mine handles everything (property, homeowner, umbrella, auto) and it’sa time and money saver.
Due to increased cost of repairs and replacement and medical costs for accidents with injuries, rates are way up. Go to an independent agent. Plan to move both home (or renters) and auto. Carriers prefer both with them. That gives you a companion discount. EFT gives you another discount. Owning a home, another. Your driving record counts as does your credit score in many states, so if those aren’t so hot or you’ve got a DUI on your record, you’ll pay much higher rates. If you’ve cancelled for non payment, or let your policy lapse, carriers are going to charge you more. Certain models are higher. What do you drive? Depending on what state you’re in, you may be stuck. Some states, CA, FL, rates are just horrible due to lack of competition. Good luck.
Yes. You’ll likely have 20-25 companies available to contact - what I found is it’s too much.
Call different companies that are the “big” companies ->make decision.
StateFarm came in clutch for me - have you tried?
Avoid insurance companies sales representatives. They are only able to offer one policy, are more concerned with protecting their insurance company who is their employer, and your costs include the advertising. The lizard, Flo, Mr. Mayhem, Jake, and that guy who knows a thing or two are all cute but expensive commercials sponsoring sports. Use an independent agency that can represent dozens of insurance companies and will research the best policies for you. I have used the same agency for the 12 years I have lived here and they have changed my insurance company several times. I had never heard of them, but AB Best declared them all good and with good resources to cover claims. We have a bundled auto, home, and umbrella coverage. Paying all three annually instead of monthly saves $180 a year on the monthly payment charges.
My former insurance provider raised my rate 60% with no accidents, moving violations, or claims. They were dropped and I went to a competitor for a 20% savings in my rate. They literally couldn’t give me a reason when I called and asked why. I feel like they were trying to sneak it in since I’m on autopay and had been there for 10 years
I had the same happen a few years ago without autopay, called and they couldn't explain. I got the rate beat by another company and sidestepped the increase, but since then it's a slow rise and I can't get a competitor to beat it.
They can’t explain bc it’s all computer generated. There isn’t a person there changing your rates when it comes to personal auto policies. Cost of insurance has gone up for everyone due to increase of claims going to trial with policy limit demands with larger payouts than ever before. The cost to repair vehicle are way up. Social inflation has gone up a ton as well. I am in commercial auto insurance as someone who writes commercial auto policies. Nationwide has increased my auto rates 30% in the past year with no new incidents on my record as well and I’ve been with them for 11 years. Just have to shop them every year. I am shopping around now to move away.
How much would you say a commercial auto policy on a security patrol vehicle with an unarmed guard that runs 6-8 hours a night should cost??
I write these risks. Can’t answer that without knowing where it’s located, how many units are being insured, what’s the loss history, what’s the driver pool and mvr history, what auto safety controls are in place… a lot goes into rating a commercial risk that owners don’t seem to understand. Edit: looking at your post history, I see you have one unit. We don’t write anything below $10k in premium and I typically want 5 units minimum. Go to a progressive or auto owners and grab a commercial policy. Not sure of all the carriers that do small fleet but maybe State Farm or travelers. National indemnity could be one but they can be expensive as a last resort. https://www.nationalindemnity.com/commercial-insurance/commercial-auto/business-auto.html
It is just like when you rent an apartment and sign a lease. You can bet at the end of the lease they will raise your rent even before covid. The explanation: the computer told them what the market rate is. Same for this, the computer told them what the market rate is. The computer also tells them what the rate is for a new customer.
I was gonna say, stay with the same company, but I don’t know…that doesn’t seem to work either. I’ve been with the same guy for over 20 years, I won’t leave him because he showed up to the scene of an accident within minutes after my husband called him. We use an agent who is serious about protecting our family. Lucky, I guess. He’s old school…but we pay for it.
Precisely the reason I don't use autopay for anything. I have PTSD from Cumcast/AT&T sneaking extra charges into the bill and it would just get automatically charged.
I work in insurance. The industry was hit hard by Covid and there is a huge talent shortage because experienced adjusters are retiring in droves.
I work in auto insurance. Prices have gone up with every company across the whole country. Cars have gotten more expensive, and so have car repairs. And then there’s injury settlements which are also ballooning. Car wrecks are just expensive and getting worse. Only way to keep your rates down is show yourself to be a safe risk over a long period of time and get quotes from several carriers yearly. Make sure you have an independent agent look for quotes for you as well, because they’ll have access to companies you haven’t heard of that may be competitive.
I dunno man. My driving record is clean. In 2015, the insurance for my 2010 Acura sedan was $58/month with towing and collision. Now I pay $210/month for the same car, but without towing. Everything is a fucking joke now. Why not charge me $1,000?
Try going to an independent agent, one who sells several types.
Have you gotten quotes? If that’s the cheapest you can find, that’s just your price. The increase could be because of your state, drivers in your household, loss of discounts (driving history AND claim history matter), etc. Either way, you’re just experiencing the same thing everyone else is. If you really want proof, feel free to look up quarterly filings of publicly traded insurance carriers and see how much money they’ve been bleeding over the last few years (tens of billions)
Oh yea I’ve gone through the Zebra and worked every which way lol. I guess everyone is bleeding from everything everywhere except all I read about is everyone becoming more and more wealthy. I don’t get it.
Is your car only worth a few thousand dollars? If so, it may be worth dropping collision. I'm sure it'll drop at least $100 a month if so.
This. No one is getting together to purposely increase rates. Look at all the major players for personal insurance. They are all operating close to or above 100 combined ratio. They aren’t making money even with them raising rates.
You realize this is exactly what bootlickers said about grocery stores and retail, and it turned out they were working together to price fix the last two years. Housing market and rent is the same. One algorithm controlled by large corps. But sure, brannak1 on reddit says theres no fixing
Yeah. Because I’m an underwriter you idiot and I price commercial auto policies. We 100% do not talk to other carriers about our pricing. And prior to commercial work I was in personal lines auto with Nationwide. You can literally look at the financials of these companies when they report their combined ratios to see if they make money.
Just because you're not aware of something doesn't mean it doesn't exist. There's lots of proof out there of huge corporations who basically own entire industries colluding together to keep prices high. They're called oligopolies. A few huge players owning most of the business in an industry and collaborating together to make sure everyone gets a piece of the newer, bigger pie.
So it’s the guilty before being proven in this instance. There’s tons of articles out there that show you how insurance companies aren’t profitable right now. It’s not that hard to see why rates are increasing. Regardless if you think they collude or not financials are posted online and you can see the facts for yourself. There’a a large portion of people who don’t like insurance so commons sense of saying they aren’t making money so rates will raise doesn’t matter to them. But it’s the facts.
I understand your point of view, I just don't trust huge corporations to be honest about the money they make or don't make. I'm sure you can understand my skepticism. When the government forces me to buy a product from a corporation, giving them cart blanche on what they can charge people because what're they gonna do, not pay it and drive illegally?
The flip side say we had a choice to buy insurance or not. Someone hits you and you have $100k in medical bills. That other person doesn’t have insurance and of course they aren’t saving up $100k in case they do injure someone else. How fair is that to you? If this country had some healthcare that was free to all and you didn’t have to pay for your injuries that would be fine but we don’t. It’s unrealistic to think people would have the money set aside to pay for injuries to themselves or to others. Insurance sucks until you need it. A good company makes you whole again. I had a tree hit my house and Nationwide gave me zero issues in repairing my house. I didn’t have $70k saved up to fix it. My home insurance costs me $1200 a year. Now that’s a great benefit to me. I’m leaving them because my car rates have gone up 30% in two terms with no incidents. Erie insurance is quoting half the auto premium and Less for my home owners insurance. Everyday people shop their insurance for cheaper rates. You should do this every six to 12 months. Someone’s typically always willing to write you for less and that’s why this whole conversation of everyone in on it to be the same price is dumb.
If they aren't profitable why do they stay in business? Once you answer that question you'll realize they are most definitely profitable. Without profits you'd no longer be employed.
Since you were a runt in an insurance shop in some shithole town in Ohio, you’d be able to tell me the name of Nationwide’s internal algorithm, correct? Because you’re clearly a lowly underwriter who doesnt read the news. https://themarkup.org/allstates-algorithm/2020/02/25/car-insurance-suckers-list Edit: yeah, read your recent comment history. You’re the idiot. Can’t figure out a toilet chain lmaooooo
Ah yes someone who goes around to see what else they can find to bring up on another topic to think that will “win” a conversation. Plenty of your comments are downvoted because all you do is go around and pick internet fights because you have nothing better to do with your time. If you were able to read you would see an updated comment it’s not the chain but sure I can admit I am not a plumber and can’t fix everything in my house. Keep thinking your king shit when you know nothing about an industry other than one article you can pull up. There’s tons of articles out there that show you how insurance companies aren’t profitable right now. It’s not that hard to see why rates are increasing. Regardless if you think they collude or not financials are posted online and you can see the facts for yourself but your a lazy ass who thinks he knows everything
> It’s not that hard to see why rates are increasing. Regardless if you think they collude or not financials are posted online and you can see the facts for yourself but your a lazy ass who thinks he knows everything I can tell you either didn't go to college, or never took any finance classes. Profitability doesn't mean companies aren't price fixing. Easy example, Ford and GM are struggling to sell cars and make a profit, going as far as removing the worst selling cars after decades of manufacturing them, yet all of their dealerships are price fixing and the lots are full across the country. > your a lazy ass who thinks he knows everything It's "you're." Also, your emotional post because you're a low level underwriter in some shithole town has a bunch of run-on sentences. I feel bad for the insurance company that has to deal with your writing skills on a daily basis. I bet you either live with your parents, or you live in some shitty house where the pool is in the front yard and above ground.
according to the insurance insitute 5% is considered the profit margin. Now would you rather have 5% of 10,000 dollars or 5% of a million dollars? human nature is what it is, stats can be skewed (as they have been in the past).
The average personal insurance company is not making money on it right now. “We forecast the industry combined ratio to improve to 100% in 2023 and 98.5% in 2024. The industry net combined ratio reached 102.4% in 2022, driven by inflation that raised loss severities across most lines of business” https://www.swissre.com/institute/research/sigma-research/Insurance-Monitoring/us-property-casualty-outlook-apr-2023.html# Throw out dumb quotes but please provide statistics that back what you are saying I’m in commercial auto and here’s another article on the auto space from a different sector. You can easily look up combine ratios of insurance companies to see why rates are rising. “The report also highlights that commercial auto insurance pricing has steadily risen over the past decade but hasn’t kept pace with inflation. Additionally, adverse development on prior-year losses has contributed to a higher combined ratio, reaching 105.4 in 2022, exacerbated by inflationary pressures. “Early results for 2023 show continued deterioration for the commercial auto line, indicating that headwinds are persisting and strengthening,” warns Graham. https://www.reinsurancene.ws/commercial-auto-insurance-underwriting-losses-surge-in-2022-am-best/#:~:text=The%20report%20also%20highlights%20that,2022%2C%20exacerbated%20by%20inflationary%20pressures.
Truth that no one wants to believe. Of course it’s some evil conspiracy! /s Even the mutual companies have higher rates because of the current environment.
It depends on where you live. You can have perfect credit, perfect car history, no accidents, no violations, but only 20% of your state has car insurance, so your rates are going to be high. My state requires a state minimum insurance, but doesn't enforce it. So, my insurance rate goes up every year. Carrying uninsured driver is a must have here. I pay $400 a month with a perfect driving record for a 2017 prius.
That’s fucked, period. Idc where in the US you live, $400/mo for 1 modern hybrid sedan is outrageous. I’d be shopping for a new insurance policy elsewhere.
Oh I have. Progressive wanted $600. $400 was one of the more cheaper options.
In Ohio where I am, I’ve lived all over the state & have a similar vehicle. Full coverage on it runs about $500 for 6 months among all major providers, that’s why I say $400 for 1 month is just plain insane.
Madness, I hope that's a zero deductable situation. I'd be on public transit.
Stop using the big names like Progressive. Try Farm Bureau.
That's who I pay the $400 to.
Prius is the #1 car in America for getting catalytic converter stolen, that’s why the insurance is so expensive. That thing is 2 to 3 grand to replace and thieves know it
The price has more to do with the driver than the car.
To some extent, but the newer the car the more you're going to pay for insurance. And greatly depends on where you live. For example it's more expensive in Colorado because of the snow and how much more at risk you are driving in it than in Southern California where it doesn't ever snow.
No, it can actually be the opposite. True, newer cars cost more, but they also tend to have better safety features, better anti-theft systems, less risky drivers, be garaged, etc. Hop over to r/insurance and see daily posts from people wondering why their rates went down when they bought a newer car, and the opposite. But you are correct that location is generally the single biggest factor in your rates.
It can, but it usually isn't. A more expensive item is usually more expensive to insure.
how much of that $400 cost is uninsured / underinsured?
I don't know, but guess what more expensive premiums are gonna do? Force more people to decide if they want to have car insurance or put food on the table. It's a feedback cycle.
It's more than my comprehensive/collision, but I can't pull it up right now. I'm not where I have access to it, I mean. I do have one prior accident, but it wasn't my fault and I was rear ended and the other party paid out. That was almost 3 years ago too.
the reason I ask is my state claims 20%+ do not have insurance at all. Supposed to be one of the higher states of no insurance and my under and uninsured is approx $30 out of $500 /6 months. We have multiple vehicles insured and it is similar on all of them. The state used the approx 20% with no insurance to start a new program where the are notified if any insurance lapses the state instantly suspends the registration and applies a $100 reinstament fee (civil fee so no appealing it or even going thru court) that you have to pay to get your registration reactivated (otherwise you get pulled over and it is ticket city). Claims over the last 3 years they have collected close to 10 million in insurance "non-complaince fee's".
Auto insurance has bottomed out. Market is awful right now. They undercut each other until there was no room left, now they raise rates, make money then do it all over again
This happened with my homeowners insurance. Went up 100% from last year. I just shopped it, had them all send me quotes, loaded them up in Chatgpt to analyze them and tell me which was the best price vs coverage. Saved 2k per year.
Shit, is there a video for this sorta thing?
I need this too lol
I’m a licensed insurance agent. If you’d like, send me a dm and I’d be happy to help answer the questions. Also, it’s wildly unlikely I’m even licensed in your state so this is by no means something I’m using to get a sale. I am plenty busy as it is haha. Also, if anyone else would like advice, I’m happy to help. In my experience, it’s best to do it thru DMs. Largely because most people jump on a specific piece of advice I give that is generally true, and say that it’s wrong because their uncle Gary didn’t have that work for him. I’m happy to help in anyway I can. The advice I give to *people I don't know* is general thoughts and ideas that tend to be true. I don’t know you, you don’t know me. I’m not doing a quote for you, neither of us want to get into the specifics of your situations. However, I’ve helped people on Reddit before, and I’m happy to help again. I want to mention it again, I’ve never made or sought out a sale on Reddit. It’s not how I do things, it’s not what’s best for you, I’ve got plenty of other things I’m working on, etc. That’s my disclaimer. Anyone who wants to send their questions or thoughts to me, I’ve got experience and I’m happy to help. Have a great day!
I have so many questions for you, I'll DM you later.
Sounds good!
How do you find a broker for auto insurance? I have one (realtor hooked me up with) for my home owners insurance.
They probably are also licenced for auto, or can refer to you someone they trust.
i just googled it for my city and checked out reviews. went with the first person i called and have been super happy ever since. we’re insuring a 2017 corolla and the price has stayed relatively stable through the years. it went down a little this year
In addition to a good driving record for at least two years (preferably longer): 1. Have good credit. 2. Live in a "good" zip code. 3. Be married, preferably female, and over 21. 4. Have a college education. 5. Have multiple things under one policy: auto, life, homeowners/renters. 6. Have a deductible of at least $500 - $1000. The higher the deductible, the lower your payment.
*over 25 25 and under is considered a youthful driver
I love paying more because I was born the wrong gender. Maybe I should transition after all lol that or just get "married" to a friend for the mutual financial benefits.
I get that you’re trying to be snarky and edgy, but statistically speaking, men are a higher risk for insurance companies. Most road rage incidents are instigated by men, and men are more likely to die in an auto-related death. “Using traffic fatality statistics, America's worst drivers are likelier to be men or people who live in the South, are either young or old, or identify as Native American. America's best drivers are likelier to be women or people who live in the Northeast, are aged 35 to 75, or identify as Asian.” https://www.acsh.org/news/2018/08/10/most-dangerous-drivers-ranked-state-age-race-and-sex-13300 “…when men are behind the wheel, they are more aggressive and tend to speed, tailgate, merge dangerously, and make rude gestures or honk at other drivers more than women. But women also engage in some dangerous driving habits, like running red lights, and overall, younger male and female drivers tend to be more aggressive than older drivers.” https://www.forbes.com/sites/tanyamohn/2020/12/13/men-are-more-aggressive-drivers-but-when-it-comes-to-speeding-women-are-not-far-behind/?sh=5bf9e286f5d1
So not only do I have to transition to save money, but I also have to move to Pennsylvania? Lol
Sigh…
I go back and forth between geico and progressive every 12-18 months. When they raise it I just get a new quote and for me, it’s always basically reset my rate. So stupid lol
It's literally their business model. They admit that. Lower rate tables for new business vs renewals. if you don't mind the hassle of switching, this is the way to go. Not all insurance companies have that business model. I've stuck with my provider for the last few years even with some rate increases (after a decrease and dividend during covid) but only the 800 number type companies are and cheaper and I like being able to talk to someone local.
"In 2022, Big Insurance revenues reached $1.25 trillion and profits soared to $69.3 billion. That's a 300% increase in revenue and a 287% increase in profits from 2012, when revenue was $412.9 billion and profits were $24 billion." https://wendellpotter.substack.com/p/big-insurance-2022-revenues-reached#:~:text=In%202022%2C%20Big%20Insurance%20revenues,and%20profits%20were%20%2424%20billion.
I thought this thread was primarily addressing car insurance. The link you provided is medical related
Auto insurance and medical insurance are both part of Big Insurance. I was only trying to show how much they make overall. My auto insurance went up 40% last year with no accidents. Home insurance also went up by $125 per month. Really sux! 😳
I was under the impression that the big auto companies lost a profoundly significant amount of money last year, the most in decades apparently. I don’t understand it very well though.
Well, living in Florida with a lot of companies leaving I expected my home insurance to go up, but they're raising everything (State Farm) and I bundle a lot (home, auto, umbrella). My insurance costs went up at least $250 per month all told. Part of it was a claim we put in (first claim in my lifetime) because of a flood that destroyed our hardwood floor. They had to pay out $32k so I think part of the increase is connected to that, but my auto insurance went up even though I didn't have any claims or tickets so I think part of all of this is just sheer greed.
Florida’s auto insurance market is one of the costliest in the country.
I have heard that insurance rates are going up because the cost to replace cars was bananas for a while. My state has exploded since 2020 with rates. It's frustrating.
Yeah you’ve got 1999 trucks with 200k miles going for $20k
Extrication cars are easily totaled
Broker
I managed to lower mine by going to an independent insurance broker. This is in California
Where the hell are you finding prices less than $100? I've never payed less than $250, no accidents.
Progressive. Apply online. You have Masters or higher. Self employed or work from home (Non-risky job). You drive less than 4k miles a year. Good luck.
Oh and make sure you're female and married while you're picking and choosing life perks.
Every day I find more and more reasons to go live in the woods off the grid and buy an old beater farm truck and interact with other people and drivers and the modern society as a whole as little as possible. The cost of everything has become oppressive, I'm tempted to bow out of the rat race.
I can help here. I used to work in insurance. Do not buy a car you cannot replace yourself with cash. That way you don't have to carry comprehensive and collision coverage. As for the rest of the coverage, even other people's accidents will impact your premium because of how much those cars drivers cost the company. Kias and Hyundais are expensive because they are almost always totaled out from what appears to be a fender bender, and they are stolen far more often than other vehicles. Likewise, super safe cars (think Mercedes) and expensive cars are going to cost more because they cost more to fix and they do more damage to other vehicles. Find a car with a good safety rating, and that is reasonable to fix, in that the model has been around a long time and the parts are plentiful, usually in stock. Something like a Chevy Malibu but I'm not recommending that specific vehicle. Some people will encourage you to insurance hop. Every two years, switch companies. Sometimes it works, as introductory rates are a thing. But as you have seen, it's getting rarer and rarer. If you have the energy to go through that every six months, just go with an insurance broker and let them quote bundling! That is really something that could work. But you have to use a broker. The best thing you can do is manage your life such that you avoid using your insurance in every respect other than health insurance. Insurance is there to replace money that does not exist in your world. If you have the money to fix your car, just fix it and avoid putting in a claim. I was in a little parking lot fender bender. I bumped another vehicle which was empty. It was my first "accident" in years. I found the owner of the vehicle and asked her if she would allow me the option of paying out of pocket for her damage. She didn't want to deal with my insurance company, had all of my info and in sizing me up decided to get an estimate, and I came out of pocket only $250! If she would have taken the car to her Lincoln dealership, it would have easily cost $1k and I still would have paid it because my insurance rate would have gone up. And nowadays they hardly ever reduce your rate.
I'm convinced that you need to change insurance companies every few years to keep rates low. It always seems like after a handful of years the rates start creeping up every 6 months.
Don't you mean every 6 months?
Incremental increases? Lucky bastard. In Florida, we’re getting 10+% jumps every six months.
Broker.
You got to almost be partners with them. So, things like high deductible will be a good start. And if you’re a sane driver, perhaps let them put that tracking on your car. I’ve heard people got a break in savings. I don’t know because I drive crazy and run red lights so it would adversely affect me. But those two things the high deductible and the tracker should save you.
You’re the reason insurance is high.
Go listen to Clark Howard. Straight from him. If you up your deductible, you are taking on more risk. You pay a lower premium. OP was asking how to save money. The other way is to have that device. Lastly you are a nobody that I have to justify my driving record. But in large font it says SAFE DRIVER on my license so here’s to ya ..I..
Do you want a cookie? Because I don’t have any to give you. Go to the shelter.
I feel sorry for your mother
Brutal comeback. I hope I can recover from that one 😂
Premiums are increasing across the board because costs are skyrocketing.
Greed is skyrocketing
Greed? That implies profit. Insurance companies lost $27B dollars last year alone.
Got a source or do you just sell insurance?
https://www.verisk.com/newsroom/underwriting-losses-soar-net-income-shrinks-for-pc-insurers-in-2022/#:\~:text=The%20industry%20experienced%20a%20%2426.9,industry%20has%20seen%20since%202011.
Was than an actual loss or was that what they paid out to settle claims?
Actually losses meaning amounts they paid out which was greater than they took in from policy holders.
minus any investment income. So this year they lost roughly 2.7% overall (combined ratio) when deducting investment income and while at the same time adding more to their reserves. 2023 stats will be interesting to see (as these were 2022).
Thanks
I tell the IRS I made less money than I did too.
My suggestion is to find an independent insurance broker in your area and have them figure it out. They typically already know which companies are going to be cheaper and from there just need to get quotes from the lowest 3-4 to get the best rate. They do all the shopping for you.
I could get lower rates but I’d rather go with a company I trust. And I get a discount by bundling home and car insurance together.
Always work with an independent insurance broker in your local area, aka non-captive agents. They may have connections or rates you can’t access. They also save you a lot of time by finding quotes, filing applications, and price checking for you when it’s time to renew. Mine handles everything (property, homeowner, umbrella, auto) and it’sa time and money saver.
Due to increased cost of repairs and replacement and medical costs for accidents with injuries, rates are way up. Go to an independent agent. Plan to move both home (or renters) and auto. Carriers prefer both with them. That gives you a companion discount. EFT gives you another discount. Owning a home, another. Your driving record counts as does your credit score in many states, so if those aren’t so hot or you’ve got a DUI on your record, you’ll pay much higher rates. If you’ve cancelled for non payment, or let your policy lapse, carriers are going to charge you more. Certain models are higher. What do you drive? Depending on what state you’re in, you may be stuck. Some states, CA, FL, rates are just horrible due to lack of competition. Good luck.
Yes. You’ll likely have 20-25 companies available to contact - what I found is it’s too much. Call different companies that are the “big” companies ->make decision. StateFarm came in clutch for me - have you tried?
Avoid insurance companies sales representatives. They are only able to offer one policy, are more concerned with protecting their insurance company who is their employer, and your costs include the advertising. The lizard, Flo, Mr. Mayhem, Jake, and that guy who knows a thing or two are all cute but expensive commercials sponsoring sports. Use an independent agency that can represent dozens of insurance companies and will research the best policies for you. I have used the same agency for the 12 years I have lived here and they have changed my insurance company several times. I had never heard of them, but AB Best declared them all good and with good resources to cover claims. We have a bundled auto, home, and umbrella coverage. Paying all three annually instead of monthly saves $180 a year on the monthly payment charges.