[ASAP]

Is there some written law somewhere that every automative insurance company has to be shady? Like is it written in every state's constitution that all auto insurance companies are there just to raise premiums, drop people, not pay people's claims etc?

I am up for renewal and can't even get a quote because it says they are looking into something but for some reason no one can say what said thing is.

I called two other companies, one wants to double my rate... no idea why or how? Then another... Geico wants to reduce my rate lol?

Where is the common sense in all this?

[tcphoto]

Don't even get me started on insurance, I had a hit and run in my own driveway last Fourth of July week and I got a picture of the drivers tag. My friend was a witness to the incident and the cars owner denied any involvement. It went to arbitration and was told that my witness was not neutral...

In the meantime, State Farm still has my deductible and even raised rates across the board in Nashville by 20%. At least they're out $2090 and I have an upgrade to a rear Sport bumper.

And to answer your question, they are only there to generate revenue and payout as little as possible while delivering as little support as they can possibly do within the law which they have lobbied to their advantage.

[Tommy-G]

Probably b/c of all the claims on Florida. They are likely cross checking to see if you have any claims, homeowners wise etc.

Anyway, I have AAA-Auto Club South. Not sure what part of Florida youre in but I have had to switch carriers 3 times since moving to Florida. Every year they revaluate their book of business and decide what to charge rate wise based on claims, fraud, etc etc.

Yes it is a very shady business.
I have had Hartford, Travelers and now AAA. No accidents, no claims but my rates always change

[ASAP]

Let me give some context-

I've never had an accident and I've only had one ticket from 20 years ago that was very minor.

Up until about a year ago, I was getting standard renewal quotes, some higher and others lower.

In July, I traded in my M2 Comp to a dealership while waiting for my X3 to arrive. It took my X3 roughly 8 weeks to arrive. As part of the agreement, I had to give up my M2 immediately in order to get best resale value.

I called Progressive and informed them that I am waiting for a new car and would not have a car for approx 6 weeks. What options did I have for insurance? Could we suspend the coverage etc? They informed that was only possible for 30 days and they could not hold it longer because its against their policy. They informed me the best option was to cancel and get new coverage once the new car arrived and just to explain the situation. That's exactly what I did...

...well, as it just so happens when it came to get qoutes on the X3, they gave me quotes that were DOUBLE my M2 renewals. Low and behold, it turns out that 1 month I didn't have a car was actually a lapse in coverage. Now everyone is causing trouble for me to get renewed, doubling my rates etc.

What a bunch of POSs... no one could clarify what to do in that situation nor did anyone have a resolution.

Speaking with another insurance agency after the fact, they told me it was just best to keep full coverage (on a car that I did not own) until I get my new car... umm, how is any of this legal? How are there not laws to protect people here?

This is scam central.

[JMcLellan]

All insurance has the same financial modeling in place. This stuff also happens with health insurance where people's quality of life is impacted.

I have an insurance agent who goes out and finds the best fit and rates for my needs. I'm sure there is a fee/premium I'm paying for this but I don't ever have to deal directly with the insurance companies to find coverage. It works for us.

[ASAP]

Originally Posted by JMcLellan

All insurance has the same financial modeling in place. This stuff also happens with health insurance where people's quality of life is impacted.

I have an insurance agent who goes out and finds the best fit and rates for my needs. I'm sure there is a fee/premium I'm paying for this but I don't ever have to deal directly with the insurance companies to find coverage. It works for us.

We could sit here and talk about this all day. The fact remains... an unchecked scam that's not legislated will be allowed to continue to exist in the way it does.

[BMW F22]

Everything has gone up. Geico has raised rates consistently over the last few years. I’m paying 20-25% more now vs when I first started with them. It’s still cheaper vs most. Supposedly due to rising costs for parts and medical care, all insurance companies are raising rates. The same goes for health insurance co-pay. Medical places also screw people on costs too (local ENT place told me one price, only later to bill me for almost 3x the original cost citing that they don’t know my policy - they checked my coverage a few times smfh).

[ASAP]

Originally Posted by BMW F22

Everything has gone up. Geico has raised rates consistently over the last few years. I’m paying 20-25% more now vs when I first started with them. It’s still cheaper vs most. Supposedly due to rising costs for parts and medical care, all insurance companies are raising rates. The same goes for health insurance co-pay. Medical places also screw people on costs too (local ENT place told me one price, only later to bill me for almost 3x the original cost citing that they don’t know my policy - they checked my coverage a few times smfh).

20-25% is not 100% as a result of some incompetent employees resolution... they r playing w people and need to be checked asap

[BMW F22]

^ I feel you. I’m sure they don’t give a shit as they can charge whatever I want. I sometimes wonder how people can afford to pay for things these days considering the average salary is so low and cost of living is so high.

[2000cs]

I am a USAA member for auto and homeowners, and I have a bank account there (easy to make payments and receive claims). I’ve been a member 46 years.

About 5 years or so ago I noticed USAA advertising on TV, and that has intensified. Clearly broadening their customer base, which to me implies adding to the risk pool (their old model was military officers and their families, I am family having never served myself). And that implies, to me, that either rates would increase or claims experience would get worse. Until those ads started, USAA had been excellent with a handful of not-my-fault accidents and a couple of homeowners claims.

I had to get different insurance when we moved to FL because USAA didn’t offer wind (hurricane) and we would be forced into the shady provider of last resort. Instead I got a broker and they set up a very reasonable homeowners policy with good hurricane coverage and we included flood even though we were on relatively high ground. Because we moved the homeowners, the auto policy rates went up (no “bundle”). So we had to move that, too.

In December of last year we moved to TN, so I again set up USAA auto and homeowners policies. At the beginning of March we had a tree fall on top of my new truck (2022 purchased at the end of Dec) and roof. Two claims, two deductibles. Communication has all been via app, except when I got exasperated and called them. The response has been slow and poor, and for the first time as a USAA member I had to really work to get close to fair value for my truck (I’m still a bit shy but decided to accept and move on). I’ve been paid for the house claim less that deductible, but still haven’t had the lien released nor been paid for the truck. Three weeks plus - in the past a few days was all it took. The total loss was over $90k with over $10k on me (deductibles and valuation of the truck).

I expect a big rate increase as a result of this. And I will likely change companies because of that and the poor (probably industry average) claims service. My sense is that USAA has become what I feared, an average insurance company with premium rates - a poor value.

A couple of points:
Insurance has changed, certainly at USAA. As they’ve moved online and away from human contact, the service has become “standardized” and there is little opportunity for exceptions. Using a good broker is likely the last refuge, but I don’t expect that to last long as the insurance companies cut them out to save cost.

Everything is more expensive. The truck that was totaled had a sticker of $75k! And there were more expensive ones (same model, different options) available. That’s BMW money (at least in my mind). The gutter replacement for my house is a couple of hundred more than the estimating sheets - because they’re not keeping up with cost increases in the real world. All of this drives claim costs up, and rates.

If I had the money I’d get a bond and self insure. But I’m not in that league and can’t afford much more financial risk than I’m taking, so I’ll keep insuring. But it feels like this will be an uphill climb for several years.

I’m not mad at USAA, I understand their business choices. But I’m disappointed that the member experience has deteriorated, and I’ve told them I no longer see them as positively differentiated from the competition as a result. It’s just life, I guess.

[dradernh]

Originally Posted by 2000cs

About 5 years or so ago I noticed USAA advertising on TV, and that has intensified. Clearly broadening their customer base, which to me implies adding to the risk pool... And that implies, to me, that either rates would increase or claims experience would get worse.

I'm reminded of the last time (3 yrs ago?) I saw Consumer Reports' ratings of auto insurance companies. According to CR's subscribers, the ones regularly advertising on tv were near or at the bottom for service.

[BMW F22]

I liked my experience with Amica. They are quite a bit more expensive vs Geico and doesn’t have MBI, so I switched from Amica to Geico. Amica was more reasonable vs State Farm, AAA, etc. You also don’t see them advertising on TV.

Edit: Geico is splitting their raise into renewals. They don’t want to bump everything up all at once and are instead doing it incrementally. Who knows how much more they will raise rates. I’m gonna need to switch at some point. Went from less than $1,500 to almost $2,000 a year for one car.

[2000cs]

By the way, insurance companies balance sheets have had the same stress as banks. Many have large losses (unrealized) in their equity and bond investment portfolios, and some also have had large claims payouts because of storms, etc. So that combination puts them in financial stress and really forces rate increases.

As an insured, I try to check out the company’s financials to be sure they have the resources to pay claims (or re-insurance to backstop large ones). Like banks, it is hard to really get good, timely information. So I’m wary of the new ones (Lemonade) and smaller ones.

[Alfisti]

Americans have a remarkable way of confusing the simple. Double the rates because 1 month lapse in coverage? Does my head in.

[ASAP]

Originally Posted by Alfisti

Americans have a remarkable way of confusing the simple. Double the rates because 1 month lapse in coverage? Does my head in.

yes, the simple answer is we allow scamming in the usa by corporation on all levels... there are 0 consumer protections

[Alfisti]

Originally Posted by ASAP

yes, the simple answer is we allow scamming in the usa by corporation on all levels... there are 0 consumer protections

It's not just that man, your multi layered taxation system, the bizarre credit rating obsession that's got more secret sauce than SEO optimisation, you somehow spend more on healthcare than anyone else yet run a private system alongside your public system....... so, so bloated and confusing.

[ASAP]

Originally Posted by Alfisti

It's not just that man, your multi layered taxation system, the bizarre credit rating obsession that's got more secret sauce than SEO optimisation, you somehow spend more on healthcare than anyone else yet run a private system alongside your public system....... so, so bloated and confusing.

all of that ties back to corporations running the show...

either way with a ton of youngsters coming up, i expect a major societal shift in 15-20 years

[Alfisti]

We opened an office in Kansas, bloody Kansas, the ultimate employer friendly state. We were expecting it to make Ontario look like a over bearing government rules and regulation state it is. We were stunned, the complexity of doing business there was just mind bending, the paperwork, the insurance issues, the wage garnishing, the RELENTLESS paperwork, the involvement of all three levels of government........ we lasted 4 years and bailed, it was costing a fortune in admin to keep it afloat.

[UncleWede]

Cali has some sort of insurance commissioner that is supposed to protect the paying public. I reached out to them once for an issue I can no longer recall: what a shining example of government service <almost bit my tongue off> and *I* worked in government almost my entire career.

[OkieSnuffBox]

Originally Posted by ASAP

yes, the simple answer is we allow scamming in the usa by corporation on all levels... there are 0 consumer protections

They use it as a check on responsibility, just like your credit score is part of what the actuaries use to determine rates.

They figure if you can't even get it together to keep your insurance up-to-date, you're irresponsible and are more likely to have an accident. Same with credit scores, how much you drive, what you drive, where you live, where you work, your age, etc, etc. There are tons of different variables that determine it. You may have never had an accident, but if you drive a car that a lot of other people have accidents in, that will impact your rates.

When I still had my 2015 BRZ and traded it in on my 135, my insurance was actually cheaper because there aren't a bunch of 25 year olds out drifting 135s into curbs and ditches......at least not at the same rate as BRZ's.

When I had my R6 my insurance was $125/month, I turned 25, it dropped it $12/month.


Sorry I used to be a claim rep and I really wish college, and high school, had courses on insurance so people actually understood how it works.

The vast majority of people don't actually read their policies, ie a legally binding contract in where you give them X dollars for Y coverage, and just assume it covers everything carte blanche.

[ASAP]

Originally Posted by OkieSnuffBox

They use it as a check on responsibility, just like your credit score is part of what the actuaries use to determine rates.

They figure if you can't even get it together to keep your insurance up-to-date, you're irresponsible and are more likely to have an accident. Same with credit scores, how much you drive, what you drive, where you live, where you work, your age, etc, etc. There are tons of different variables that determine it. You may have never had an accident, but if you drive a car that a lot of other people have accidents in, that will impact your rates.

When I still had my 2015 BRZ and traded it in on my 135, my insurance was actually cheaper because there aren't a bunch of 25 year olds out drifting 135s into curbs and ditches......at least not at the same rate as BRZ's.

When I had my R6 my insurance was $125/month, I turned 25, it dropped it $12/month.


Sorry I used to be a claim rep and I really wish college, and high school, had courses on insurance so people actually understood how it works.

The vast majority of people don't actually read their policies, ie a legally binding contract in where you give them X dollars for Y coverage, and just assume it covers everything carte blanche.

i will take a wild guess you didn't read all my posts

[OkieSnuffBox]

Originally Posted by ASAP

i will take a wild guess you didn't read all my posts

Sorry, I was in a meeting and just trying to skim through.