Car Insurance skyrocketing

[Duds13]

Wonder what the "migrants" are paying for auto insurance

 

[MossRoad]

Interestingly enough, our home is valued on the real estate market at almost exactly 1/2 of what it would cost to replace it.

For example, it would cost $250,000 to replace a house worth $125,000 on the open market.

I'd guess 50-60% of the houses in this town are like that. Probably more.

 

[jyoutz]

Interestingly enough, our home is valued on the real estate market at almost exactly 1/2 of what it would cost to replace it.

For example, it would cost $250,000 to replace a house worth $125,000 on the open market.

I'd guess 50-60% of the houses in this town are like that. Probably more.

Some depreciation due to age of building?

 

[Snobdds]

My vehicle insurance has been going up a lot lately due to the facts mentioned. No claims.

I have 4 vehicles insured. No one else drives my vehicles. I told my agent that their risk is automatically reduced by 75% since I can only drive one at a time. Dead silence.

I then said I just want to insure my drivers license so any vehicle I drive is covered by MY insurance. Dead silence again.

I've never seen a poor insurance agent either.

Insurance is not rated based upon your actions alone, or lack there of. Insurance is a pool of money, used to protect against loss. It would be natural to rate the pool, not the individual. It's called community rating and it strives to rate the exact pool you're in. For example: Sex, age, Zip code, urban/rual, driving history etc. Now each one of those categories have some sub categories feeding into them. The goal is to develop a risk score, and then compare that against a benchmark for the same demographics to arrive at a rate level correlation grid.

Just because you only drive one car at a time, it dose not transfer or eliminate the risk of those other cars. A wind storm could cause a tree to fall on your garage and guess what...insurance would be liable for a non moving offence loss. You want blanket protection loss coverage, not some use metric loss coverage. That gets messy.

I was between undergrad and grad school when I worked for Farmers doing rating. It was nowhere near health insurance in complexity and all the factors and benchmarks were very close to actual numbers. This is why it shocks me to see such high losses on such a known line of business. The pandemic changed so much from normal, even 4 years later. Even the long term insurers are getting socked.

 

[Snobdds]

Some depreciation due to age of building?

Location.

 

[LittleBill21]

went up for house cars for both me and my parents, said there isn't a damn thing i can do about it between the floods and disasters, and prices, its is what it is now

 

[Snobdds]

Natural disasters did not just start in 2023. There are well established disaster factors that are pretty good. Even if a given year has more than average, it's only a marginal increase from trend.

The biggest factor going into the rating is replacement cost and repair cost.

 

[Jstpssng]

My insurance went up 30% this year. The last accident I had was in 2012... when a tree fell on my company truck as I was driving down the road. The last claim I've made other than glass was in 1984.

This week I had a new windshield put in but that didn't come near my 1000$ deductible. Funny thing, my tractor deductible is only 250.

 

[kenacp]

Paid State Farm Auto today. $900+ on each of my two (6mo). A Tacoma and a Highlander.

 

[Pixguy]

Auto insurance is crazy here in Florida but it's no wonder when you see the commercials or billboards where the ambulance chasers advertise the huge settlements (250k-$2mil)they get for small accidents.

I got a small dent in my rear bumper and the dealer got $4k from my insurer. The insurer recommended the dealer btw. I also had tiny dent in my front quarter from a grocery cart and the dealer wanted $1k. I instead paid a dentless repair guy $200.