Car Insurance skyrocketing

[Hay Dude]

They've been devaluing the dollar since 2008 until 2020-2022 when they really went overboard, and there's no sign that they have any plans to do anything except continue the same fiscal and monetary policies.

When housing prices essentially doubled between 2019 and today, that is a heck of a lot of financial burden for ordinary people to bear.

Animal intake at shelters is up over 30% at many animal shelters across the US because people can't afford their pets.

I can’t prove with documentation, but I hear a record number of people are cashing in their IRA’s and paying the early withdrawal penalties because they’re broke.

We’re in financial collapse. Gold going through the roof, over-inflated stock market and housing market, funding a lost war, and worst of all, out of control spending in DC.

 

[kenmbz]

I can’t prove with documentation, but I hear a record number of people are cashing in their IRA’s and paying the early withdrawal penalties because they’re broke.

We’re in financial collapse. Gold going through the roof, over-inflated stock market and housing market, funding a lost war, and worst of all, out of control spending in DC.

The IRA withdrawals are in the news. Lots of people hitting them up to pay increasing bills.

online:
Twenty-nine percent of traditional IRA–owning households in mid-2022 took withdrawals in tax year 2021 compared with 23 percent in tax year 2020. Some of the increase in withdrawal activity resulted from the return of required minimum distributions in tax year 2021, which had been suspended in tax year 2020.

https://www.cnbc.com/2023/08/17/401k-hardship-withdrawals-are-rising-in-2023-reports-find.html

 

[MossRoad]

I found some stats that say the AVERAGE 401K balance is about $112,500. However, the MEDIAN 401K balance is only about $27,300.

And here's the breakdown by age groups.

Age	Average 401(k) balance	Median 401(k) balance
Under 25	$5,236	$1,948
25 to 34	$30,017	$11,357
35 to 44	$76,354	$28,318
45 to 54	$142,069	$48,301
55 to 64	$207,874	$71,168
65 and up	$232,710	$70,620

Here it is broken down by incomes...

Annual income	Average 401(k) balance	Median 401(k) balance
Less than $15,000	$20,765	$4,033
$15,000 to $29,999	$13,871	$4,568
$30,000 to $49,999	$28,672	$11,556
$50,000 to $74,999	$66,033	$31,064
$75,000 to $99,999	$113,617	$104,155
$100,000 to $149,999	$186.066	$104,155
$150,000 and above	$340,245	$201,301

I've tried to encourage my coworkers to contribute more to their retirement accounts over the decades, but they won't. It's not that they can't. They won't.

Fortunately, our children listen to us and put away 15% of their income since high school.

 

[riptides]

I found some stats that say the AVERAGE 401K balance is about $112,500. However, the MEDIAN 401K balance is only about $27,300.

And here's the breakdown by age groups.

Age	Average 401(k) balance	Median 401(k) balance
Under 25	$5,236	$1,948
25 to 34	$30,017	$11,357
35 to 44	$76,354	$28,318
45 to 54	$142,069	$48,301
55 to 64	$207,874	$71,168
65 and up	$232,710	$70,620

Here it is broken down by incomes...

Annual income	Average 401(k) balance	Median 401(k) balance
Less than $15,000	$20,765	$4,033
$15,000 to $29,999	$13,871	$4,568
$30,000 to $49,999	$28,672	$11,556
$50,000 to $74,999	$66,033	$31,064
$75,000 to $99,999	$113,617	$104,155
$100,000 to $149,999	$186.066	$104,155
$150,000 and above	$340,245	$201,301

I've tried to encourage my coworkers to contribute more to their retirement accounts over the decades, but they won't. It's not that they can't. They won't.

Fortunately, our children listen to us and put away 15% of their income since high school.

That's scary and too bad at the same time.

 

[CloverKnollFarms]

Hardship withdrawal from 401s are up too. From the bottom up and middle out!

 

[two_bit_score]

Hardship withdrawal from 401s are up too. From the bottom up and middle out!

People are struggling.

 

[ultrarunner]

They've been devaluing the dollar since 2008 until 2020-2022 when they really went overboard, and there's no sign that they have any plans to do anything except continue the same fiscal and monetary policies.

When housing prices essentially doubled between 2019 and today, that is a heck of a lot of financial burden for ordinary people to bear.

Animal intake at shelters is up over 30% at many animal shelters across the US because people can't afford their pets.

Local shelter gets a lot of restricted breeds because insurance will cancel if they have a Pit bull, Rottweiler, Doberman, etc.

 

[MossRoad]

Hardship withdrawal from 401s are up too. From the bottom up and middle out!

I've known people that have taken loans from their 401K in good times as well. It's one of the worst ways to take a loan. Last choice. They had other ways, but they see a few thousand dollars in there and pulled it.

 

[Jchonline]

So very thankful to have USAA.

 

[Hay Dude]

People are struggling.

Why? Isn’t the economy doing great?

Americans' Weak Economic Ratings Slip Further in September

Americans' already dim view of the economy has gotten a little worse in September after the trend lines had pointed up over the summer.

news.gallup.com

 

[Tomtint]

Local shelter gets a lot of restricted breeds because insurance will cancel if they have a Pit bull, Rottweiler, Doberman, etc.

We have had all of those breeds.. A couple Dobermans and one of them was the friendliest dog we ever had, The other was friendly but aloof. .. the Rotti was a sweetheart, super friendly. We have had 2 Weimariners and both were different. The current one had a bite issue and insurance canceled us. Next carrier went up 50% on our policy but excluded the dog from the policy.

 

[Jchonline]

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.

Billion-Dollar Weather and Climate Disasters | National Centers for Environmental Information (NCEI)

Summary of U.S. billion-dollar weather and climate related disaster research, methodology, and data sources

www.ncei.noaa.gov

This graph does a good job of visually explaining the cost you speak of.

 

[kenmbz]

I just added my under 18 son to my car insurance.
Went from an already too high 2800 to $5600!
And I am in a low crime, low theft area.

 

[jyoutz]

Billion-Dollar Weather and Climate Disasters | National Centers for Environmental Information (NCEI)

Summary of U.S. billion-dollar weather and climate related disaster research, methodology, and data sources

www.ncei.noaa.gov

This graph does a good job of visually explaining the cost you speak of.

Property damage is significant, but chump change compared to medical injury claims.

 

[Torvy]

Everything is going up, but ask some certain folks and they will tell you the economy has never been better and you are definitely better off now than 4 years ago!

Well, 4 years ago we were in lockdowns. Hard to argue we aren't better off now overall.

Inflation is worse, but that's not the question people ask.

Part of the insurance thing is that it is very much state specific. Even national insurers have completely different policies depending on where you live. We've had Allstate in 4 different states and the the basic policy works completely differently. Prices also vary wildly.

If your state has higher inflation than the national average, the cost of repairs will be higher, so the insurance goes up too. (Not to mention the added cost of labor, rent and taxes in those places).

Our insurance is much lower now that we retired to the country.

 

[Torvy]

The economy is good when you look at low unemployment and GDP. Of course, like always a better economy does involve increasing prices due to supply and demand, especially for real estate. I never had my home value increase when the economy was bad. This doesn’t mean that a hot economy benefits everyone. Those on fixed incomes like retirees don’t have their boat lifted by a rising tide.

Both the GDP and the employment numbers are mirage. GDP is not adjusted for inflation, so it goes up when prices go up. Employment doesn't measure many factors such as underemployment or people who have completely dropped out of the workforce.

Home values go up in inflationary periods as well. In general, real estate always has upward pressure due to the fixed supply. Real estate drops are almost always transitory. Inflation is rarely so since we left the Gold Standard.

 

[geteh]

Only person I know of that says that is the current POTUS. IMO, he's dead wrong as usual.

If all of you had any idea what we pay to insure the farm and all the equipment plus the vehicles and the rentals, you'd probably have a heart attack.

Lets just say it's real close to 8 grand a year.

Lucky we can write most of that off as a business expense. Only gonna get worse, not better until the Fed gets inflation under control and that won't happen with this current administration.

Why I keep saying, get out and vote, but vote wisely.

Just glad we are mortgage free except for one rental and that rental payment covers the insurance on it amongst other things Austin HVAC service.

Our carrier just increased the deductible to 2 grand and we have no say in that whatsoever and believe me, I've shopped for insurance before and there are no deals to be had.

How much increase are you guys seeing for your auto insurance? My rates have been steadily skyrocketing from Progressive, even though my car is actually getting older and I have zero changes in any of my parameters - driving record, claims etc.

Progressive increased my premiums 16.4% in mid 2023, now they've increased it again after just 6 months another 5.2% (that's an annual rate of about 10+%).

Thought inflation was moderating, but does not look like it is in the insurance space.

 

[kenmbz]

Went up about 50% in the last three years.
Just doubled when I added my son, so now at $5600 for two older cars.

 

[scootr]

I feel we all wasted a lot of money in our lifetimes on insurance we never used. I'm just saying - I wish all that money in a 5% CD right now.

 

[jyoutz]

I feel we all wasted a lot of money in our lifetimes on insurance we never used. I'm just saying - I wish all that money in a 5% CD right now.

I used to feel the same way. Then 15 years ago my truck was stolen, and 5 years ago my house roof was replaced due to hail. I think I’m actually about at the break even point.