How much your insurance has increased in the past year?

[Maxx]

Change Companies, Mine dropped 400.00 every 6 months. Fairfax No.Va.

May I ask what company you switched to?

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[shutterbug]

No, I expected it to be a self funded government service. With an initial charter that prevents abuse.

Because government is so efficient at managing everything it touches

Keeping in mind that insurance companies are already regulated by state government. The CA government has done such a great job that several insurance companies are fleeing the state.

 

[Henry Ford]

It's easy:

• get rid of shareholders
• Pay people salaries, no bonuses, even the senior management
• In a rolling 5 year period, money not spent on claims is returned to the policy holders.

Yes, initially you would need to be collecting a lot more to stock up for possible disastrous times, which is why a rolling 5 year period. But if you stopped paying dividends to shareholders and ridiculous C-suite bonuses, you'd already be building that and likely wouldn't even need to raise rates.

Expansion (new building and equipment) is an expense, and would not be affected by going non-profit. Non-profits still make money, in some cases the amount is mind boggling. They usually just maintain non-profit status by paying their board of directors giant bonuses.

Also, I do not expect this, it'll never happen, this is just how it could be done. Insurance is a cash cow that is rigged to always win more money for share holders.

This exists. Mutual insurance companies are owned by the policy holders and profits are returned via dividends or (more likely) lower premiums.

I use Auto Owners for all of my insurance needs. It's a mutual company, I have a local agent I can call for questions and near instant quotes, and they have been super helpful when I've had claims which has been often.

Often enough that I'm ahead in the insurance bet. All but one claim have been acts of God or acts of other bad drivers (deer, hail, hail, ran red light). My insurance is the same or less than my buddies who have national brand insurance with no local agent.

All that said, laws are different in different states. In Michigan, where I live, auto insurance is very expensive due to required medical liability coverage (Google it if you are interested, it's boring). I'm happy with Auto Owners. They don't operate in every state but there must be mutual companies that do.

 

[Henry Ford]

Because government is so efficient at managing everything it touches

Keeping in mind that insurance companies are already regulated by state government. The CA government has done such a great job that several insurance companies are fleeing the state.

My understanding is insurance companies are leaving California because they aren't allowed to charge enough to cover costs. They have to look back something like 30 years when planning for claims but recent and predicted natural disasters are ahistoric and potentially bankrupting for companies that participate. In other words, the state is preventing insurance companies from raising rates so they are bailing.

 

[Maxx]

Because government is so efficient at managing everything it touches

Keeping in mind that insurance companies are already regulated by state government. The CA government has done such a great job that several insurance companies are fleeing the state.

Government inefficiencies can cost the customer.

Private industry greed with no limit to how badly they are willing to crew over their customers to increase the profit margins can cost the customers as well.

The question is which one costs more. Government inefficiencies are usually easy to see. The crap some of these corporations pull with their lobbyist covering them up takes decades to come to light f they ever do. Beside private industry has already figured out how to be efficient. Copy and paste.

 

[shutterbug]

get rid of shareholders

Then who is going to put up the initial capital, so that the insurance company doesn't go tits up in the first couple of years? I'll give my own example. When I got my MME, my premium was $550 for 6 months. After 2 years ($2,200) I had an at fault accident. The insurance payout was over $12,000. Then my insurance went up to $750. It will take years for my insurance company to recover that money. Who is going to front that?

ay people salaries, no bonuses, even the senior management

Even government and non-profits pay bonuses

Many insurance companies are set up as mutual companies (e.g. State Farm) and have no stock holders, but they still need profits to fund potential payouts.

 

[Maxx]

When I got my MME, my premium was $550 for 6 months. After 2 years ($2,200) I had an at fault accident. The insurance payout was over $12,000. Then my insurance went up to $750. . It will take years for my insurance company to recover that money. Who is going to front that?

No it does not. People that did not have an accident pay it in the same year with additional profit. Insurance companies know how to do math.

 

[shutterbug]

Private industry greed with no limit to how badly they are willing to crew over their customers to increase the profit margins can cost the customers as well.

All insurance companies are regulated by state government. Some states do a better job than others. Please move to California, so you can directly observe government "efficiency" in action.

 

[Maxx]

All insurance companies are regulated by state government. Some states do a better job than others. Please move to California, so you can directly observe government "efficiency" in action.

I have seen Government from inside for decades. You don't have to make the case to me that it can be inefficient. What I am saying is that efficiency is not everything.

 

[shutterbug]

No it does not. People that did not have an accident pay it in the same year with additional profit. Insurance companies know how to do math.

Yes, they do. Which is why insurance premiums are on the rise. When insurance companies lowered auto rates during COVID lock down, no one whined. Today, people drive more, get into more accidents, and parts are more expensive.

 

[Wattsun]

May I ask what company you switched to?

I didn't switch, My existing company dropped my rate 400.00 every 6 months.

 

[shutterbug]

I have seen Government from inside for decades. You don't have to make the case to me that it can be inefficient. What I am saying is that efficiency is not everything.

Not just inefficient, but rife with grift and corruption. The world would be a better place if governments did less not more.

 

[Maxx]

Not just inefficient, but rife with grift and corruption. The world would be a better place if governments did less not more.

Do you know why there is corruption in Government? Because of the size and influence of private industry. Just follow the money. The whole point of it is less control so they can screw over the consumer freely. We don't need less government, we just need better government.

I won't harp on this case too much because I really don't know the numbers insurance companies are working with and I have no doubt the cost of the claims has gone up. Just don't know how much. So I stop going off track on this and let folks just share their insurance stories.

 

[flyct]

I’m with State Farm since 1970. Almost every year I shop but I can’t find anything less expensive. Florida insurance is crazy.

my 2024 F-450 diesel Platinum is the cheapest of my 4 vehicles.
no chargeable accidents, tickets etc.
Safe Driver discount
Drive Safe and Save discount


I have 4 vehicles
$1,220/6 months 2023 Lightning lariat higher due to stacking UM
$522/6 months 2023 Tesla Model Y (mine)
$425/6 months 2023 Tesla Model Y ( wife’s)
$385/6 months 2024 F-450 Platinum

All vehicle have:
$250k/$500k Bodily injury
$100k property damage
$2k deducabke comp,and collision
$10k no fault
Emergency road service

The Lightning also includes:
$250k/$500k Uninsured motorist staking (covers all vehicles)

PLUS I carry a 1 Million Umbrella Policy for $40/month
I also have a 5th wheel RV and a Kawasaki Side by Side policies with Stare Farm.

 

[Maxx]

$1,220/6 months 2023 Lightning lariat higher due to stacking UM

Holly crap. I am crying here because my Lightning went from $400/6months to $500. Of course yours is a Lariat and mine is a Pro.

What is stacking UM?

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