Auto insurance

[tvguy]

Tvguy.....you're right, but in my book of business most of my customers live paycheck to paycheck. They are the ones who I have detailed notes when they yell at me for having such a high deductible. We offer everything and don't try to over influence people. Insurance is a double edge sword, you hate paying for it but when something goes wrong and you don't have proper coverage you're mad at me and my team...lol!

Also, I may be everyone's good neighbor...hahaha!

Sadly, most of those folks here just don't bother with insurance, even though legally you can't register a car without it. I was raised with the mindset that insurance is for catastrophic losses, not a few hundred dollars.
My neighbor is a retired underwriter for Aetna-Travelers. He says people don't realize that the number of claims, not the size, can get you dropped. He said he had a customer dropped for 4 claims in 2 years totaling less than $1,000. And another case, a claim that was going to cost well over $100,000, but it was the customer's first claim in 40 years. They were not at risk of being dropped. They also had life, homeowners and long term care insurance with his company.

 

[piccolopat]

While the frequency and severity of your losses are a component of your premium, if none of this has changed since your renewal last year, it is probable that your rates are going up because the base rates that everyone starts with are going up. As a PP said, the industry is seeing significantly more claims due to distracted driving. Not only do I also see people texting, eating, watching videos, putting on make up, etc. while driving but I also see a general disregard for basic driving rules. So many drivers can't stay on their side of the middle line, especially on curves. So many people don't use their directional signals, fail to yield, don't drive the speed limit and other infractions. Unfortunately our police don't do much in the way of traffic enforcement these days. You can and should shop around. Just because you company's base rates go up (and it would be based on the loss experience of their policyholders), other insurers may have had better luck or tighter underwriting standards resulting in lower rates.

 

[mellvswdw1]

Sadly, most of those folks here just don't bother with insurance, even though legally you can't register a car without it. I was raised with the mindset that insurance is for catastrophic losses, not a few hundred dollars.
My neighbor is a retired underwriter for Aetna-Travelers. He says people don't realize that the number of claims, not the size, can get you dropped. He said he had a customer dropped for 4 claims in 2 years totaling less than $1,000. And another case, a claim that was going to cost well over $100,000, but it was the customer's first claim in 40 years. They were not at risk of being dropped. They also had life, homeowners and long term care insurance with his company.

You are so right! I am always amazed whether it's a auto claim or a homeowners, how people want us to just pay out a small amount and then they are mad at me when our underwriters take action. I always try to guide them that if it's not a large sum, just pay for it out of pocket. However there is a large majority that sees insurance as a maintenance policy not a catastrophic policy. They are the first ones to yell and scream. I understand you pay for insurance, but if your roof is already leaking and is over 20 years old, just because we have a bad storm doesn't mean you deserve a new roof. Ok, sorry to derail. I'm sure I will get flamed, but I'm always amazed by what people feel they are owed but don't understand how a policy works. Word to the wise, meet with your agent once every 18 months so you're not surprised!

 

[mellvswdw1]

While the frequency and severity of your losses are a component of your premium, if none of this has changed since your renewal last year, it is probable that your rates are going up because the base rates that everyone starts with are going up. As a PP said, the industry is seeing significantly more claims due to distracted driving. Not only do I also see people texting, eating, watching videos, putting on make up, etc. while driving but I also see a general disregard for basic driving rules. So many drivers can't stay on their side of the middle line, especially on curves. So many people don't use their directional signals, fail to yield, don't drive the speed limit and other infractions. Unfortunately our police don't do much in the way of traffic enforcement these days. You can and should shop around. Just because you company's base rates go up (and it would be based on the loss experience of their policyholders), other insurers may have had better luck or tighter underwriting standards resulting in lower rates.

You're singing my song...lol!

 

[MillauFr]

I am surprised they even offer a $250 deductible. When you make small claims the insurance company is going to jack up your rate and recoup the amount they paid out in a couple of years.

 

[adisneyaunt]

....Shop around, seems like the only thing you can honestly do at this point.

If you can get a better rate my using one carrier ( auto, home, umbrella) you often get a better rate as well. Have a copy of your Dec page and compare exact coverages. Get the quote and go line by line. It used to be long term clients were Important, no more, shop around!
There are many people Uninsured and Underinsured, so protecting your. family should be the first priority
Best of luck and safe driving!

 

[tvguy]

I am surprised they even offer a $250 deductible. When you make small claims the insurance company is going to jack up your rate and recoup the amount they paid out in a couple of years.

It depends on the insurance. I have classic car insurance on my 1965 Mustang. Zero deductible on any part of the full coverage. The company doesn't even offer a deductible as an option. But that is a whole different kind of auto insurance. You have to have another car as your daily driver. You insure for an agreed or appraised value, not actual cash value and you have a low mileage limit. But classic cars generate few claims. My agent says in 20 years, they have never processed a claim.

 

[TexasErin]

DH called GEICO and it will be $294/month which is a lot better than the $459/mo that MetLife and Allstate quoted. I do hope it will continue to remain a good deal when it is time to renew.

Thanks all for your advice and ideas!

 

[Mrs. Bradbury]

Having changed car/home insurance a few times over the years (I'm mid 50s) I think some companies lure you in with an initial low rate and then sock it to you at renewal, thinking that you'll find it too onerous to look into changing companies AGAIN.

I have read that insurance companies will raise rates on renewals because they are testing when a consumer will say "Enough!" and look elsewhere.

I don't have warm and fuzzy feelings about the insurance industry.

Some other things that may raise your rate:

* Where you live, literally, or your zip code
* How expensive your car models are to repair
* How often your car models are stolen
* How new they are (aka $ worth)
* Overall claims they've had to pay in general (you don't think they're going to use THEIR reserves, do you? LOL)