Car Insurance skyrocketing

[Hay Dude]

We pay $6,500/yr for our AgAdvantage policy with Texas Farm Bureau. Due to the high cost of building in East Texas (their explanation), the 3200 sq ft house, 1800 sq ft stables, 2400 sq ft shop, and 1200 sq ft carport are valued at almost $1,000,000 replacement value. Plus, I have all the tractors, implements, lawn mowers, and trailers covered under it.

I’m north of that on replacement value, so I know what you mean!

 

[ultrarunner]

950 square feet cottage on 40x125 city lot $1900 renewal.

 

[Jstpssng]

950 square feet cottage on 40x125 city lot $1900 renewal.

If the place burned, would you be able to rebuild on that lot?

 

[ultrarunner]

If the place burned, would you be able to rebuild on that lot?

Yes… it’s a typical subdivision lot in my city… many are half the size.

2500 square feet with 25’ frontage is the minimum without a variance.

Some areas also have 4,000 and 5,000 minimum.

Typically you are always ok if the lot size conforms to the neighborhood plus infill construction now is green lighted with housing emergency declared.

 

[jyoutz]

Yep, so that along with fuel, food, parts and just about everything else is why I have grounds to complain about the way the economy is currently being handled.

It sucks.

Since I’m only paying $1500/year for a 3300 square foot house plus 2400 square foot barn, your situation has not much to do with national economy factors and a whole lot to do with local economy factors.

 

[CloverKnollFarms]

I'll admit, we built a smaller house than most, at 1700sq ft. Our previous build was 3000, and we just wasted a lot of it. My shop space totals 3300sqft . Kids are basically gone, the wife needs an office, and my time is spent in the shop 80% of the time.

 

[Hay Dude]

Since I’m only paying $1500/year for a 3300 square foot house plus 2400 square foot barn, your situation has not much to do with national economy factors and a whole lot to do with local economy factors.

Local or national, inflation sucks, but no it has a LOT to do with national factors. My house is 7,000SF and I have an oversized garage in the back of my property if that makes you think any differently.

 

[riptides]

Local or national, inflation sucks, but no it has a LOT to do with national factors. My house is 7,000SF and I have an oversized garage in the back of my property if that makes you think any differently.

So is it a farm or a home according to the insurance?

 

[YanmarFever]

Hay, do you ever get lost in your house, 7,000 sq ft is a castle!
Our insurance with hurricane included runs a little over 5Gs just for the house.

Im adding insurance salesmen to my list along with lawyers, realtors, car salesmen, politicians, ect...

 

[5030]

Last time I checked, not even one insurer operated as a 'non profit'. They are all in business to make money on you...lol

 

[LittleBittyBigJohn]

That's rude of them...

 

[two_bit_score]

Hay, do you ever get lost in your house, 7,000 sq ft is a castle!
Our insurance with hurricane included runs a little over 5Gs just for the house.

Im adding insurance salesmen to my list along with lawyers, realtors, car salesmen, politicians, ect...

You're on the right track.

 

[ultrarunner]

Last time I checked, not even one insurer operated as a 'non profit'. They are all in business to make money on you...lol

Yes and they have made a bundle but to avoid discrimination they toss the profitable customers out to justify not writing coverage for undesirables…

Plus type of construction or mitigation not a factor.

A concrete block with metal roof is the same as stick with comp.

There is a issue with shake roofs so it’s not 100%

 

[Hay Dude]

Hay, do you ever get lost in your house, 7,000 sq ft is a castle!
Our insurance with hurricane included runs a little over 5Gs just for the house.

Im adding insurance salesmen to my list along with lawyers, realtors, car salesmen, politicians, ect...

Appreciate those kind words.
It comes in handy-xspecially when you have a dementia patient living with you.

I worked myself to death to get this home in 2008 and have lived here for 16 blissful years, since I was a “young pup”.

We are selling and moving on to a larger piece of land and more manageable home for Mrs. Hay Dude.

 

[JasperFrank]

Insurance is not a right. No one HAS to give you insurance aside from your saving account, for anything.

 

[YanmarFever]

Nobody here is asking for anything for free...
Just a fair price instead of getting raked over the coals every six months.

 

[Joel/ak]

No such thing as a fair price for just about anything nowadays.

 

[ultrarunner]

Lots

Insurance is not a right. No one HAS to give you insurance aside from your saving account, for anything.

Insurance may be mandated via government such as flood and is seen as a right.

Earthquake not mandated but is a right through the State.

Unemployment Insurance and Health Insurance are often termed a right at least here as well as Workers Comp.

 

[two_bit_score]

Insurance should be a competitive business. As soon as there is a way to make money the market place will be filled with underwriting offers.

I’ve seen cycles where insurance companies tried to ‘buy business’ in certain areas by liberally paying claims.

They would lose money by paying claims normally not covered to gain a perceived reputation in the market place as a ‘fair company’. Good example is roofs. Normally a roof is subject to depreciation because of normal wear and tear de to weathering. So with depreciation and deductibles it’s often the case that an insured doesn’t collect much on an older roof.

But, some companies will relax the depreciation withheld intentionally expecting that word gets around that Neighbor A got hit with 50% depreciation and Neighbor B’s insurance company only took 20% depreciation.

Company B starts getting more Homeowners policies. But in time the company will be forced to increase premiums, non-renew policies by field underwriting, increase depreciation with holdings, or possibly go out of business.

 

[ultrarunner]

Maybe there would be more competition if insurance didn't come with a mandate?

Still plenty drivers in the road with no insurance or drivers license and Max DMV penalty is revoking license so if you drive without the DMV is out of the picture.

You have a good chance of vehicle impound but if you drive a worthless car with expired tags you might come out ahead...

I've been hit 3 times over the years and drivers no license or insurance...