NFT: Insurance Crisis

I feel like even with no claims we have to switch auto every 2-3 years.

If I remember correctly my auto insurance is comparable to what it was last year (though I can double check when I get home). As far as my policy on my co-op I won't know that until I get the bill in June.

If you are a Costco member, get their Connect insurance, which is American Family.

I bundled home & auto and got the best price after shopping around.

I've had auto with them for a couple of years and the yearly increase was minimal; so now I got home with them also.

More technology in cars equals higher costs to repair. Ambulance chaser lawyers equals higher damages paid. See a driver driving like an asshole and reckless? Someone is insuring that driver.

It sucks, but there is a serious insurance crisis happening. Everyone talks about moving to Florida to save on taxes, well good luck with homeowners insurance down there.

It's a problem.

I was insured by Geico for 20 years.

I got quotes, and was able to get better coverage with an very slight increase with doing home and auto bundle with State Farm although they would only do so by putting a safe driver beacon in the car (like an EZ pass).

Policy double on us when it was time to renew late last year. Called my agent, she didn’t care pretty much said it is what it is. I said ok, goodbye. Got a reference through a broker friend of ours to a different agency, they got us a new policy for both and saved us over $1K dollars from what we were previously paying. Shop around, switch agencies if the agents don’t want to do their jobs and shop for the best policies for their clients. Hopefully our rates will stay where they are and we don’t have to hope for this situation again this year.

hate playing the game but looks like I have no choice

it is illegal, but they are all doing the same thing and customers will have no other alternative.

Regarding homeowner's, if the replacement cost has increased due to inflation, then I can understand how it could be linked to an increase in premiums.

when I got crushed on my 2024 renewal for Home and Auto.

This is one of the more under-reported inflation costs in the economy. It's brutal.

I shopped around everywhere it was a lot of work, I finally found Amica Insurance and they were the best rate but still a huge increase from what we had. Car accidents are up a lot due to distracted drivers and the storm intensity is causing a lot of damaged properties is the drivers. I have a teenage driver that has already been in a few accidents my insurance is scary.

auto only up slightly.

In comment 16469708 Victor in CT said:

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auto only up slightly.

You are the lucky one, mine was up 200%.

We are paying for all the catastrophes in the country.

In comment 16469722 Blue21 said:

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We are paying for all the catastrophes in the country.

They are. I work for an insurance carrier. Reinsurance costs are through the roof because of all the catastrophic events the past couple of years. Couple that with inflation - cost of literally everything is much more than it was 2 years ago (Much much more 5 years ago), including construction materials, car parts, labor, defense costs - everything. So the reinsurance costs are killing the carriers and the only way to make it up is to pass it to the consumer.

Probably the least talked about negative impact of inflation that has one of the biggest effects on almost everyone.

Not trying to get political but most of the big companies - The Travelers, AIG, Hartford, Berkshire Hathaways of the world expect things to significantly settle down or at least level off if things go a different direction in November.

At homeowners insurance renewal time I received quotes from a number of agents through the mail. When I'd call them and confirm the information they had when they quoted me, mysteriously the rates would tripled. You'd think someone picked up the house and moved it right in the middle of a hurricane zone.

I've never had a claim, my credit score is excellent, the house didn't change locations; it made no sense.

not positive but i think generally the longer you've had the policy the bigger the increase.

Quote:

The Kobeissi Letter @KobeissiLetter Insurance is the new "luxury" item: Many Americans are no longer able to buy cars because they cannot afford to insure them. The cost of auto insurance has risen by a massive 22% over the last year. This is the biggest one year jump in insurance premiums since the 1970s’. Meanwhile, the average new car loan interest rate is now 9% and used car loan rates are well above 12%. The average car payment for a new vehicle is at a record $738/month. Car ownership is more expensive than ever.

Link - ( New Window )

Where insurance companies were collecting driving data without owners knowledge and using that as a basis to raises premiums even if there were no claims.

In comment 16469797 widmerseyebrow said:

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Where insurance companies were collecting driving data without owners knowledge and using that as a basis to raises premiums even if there were no claims.

NY Times article - ( New Window )

I’m a realtor in Texas. Try to help my clients even after the sale to be a resource for them. Most of us have had major increases in home owners. There’s several things that’s causing the increase. Obviously, all the claims. Between the hurricanes in Florida, wild fires out west, and us in northern Texas get a lot of hail every 3-4 years. Insurance companies have had to pay out a lot. And with everything inflating, the cost to rebuild a home is much higher than it was several years ago.

I know it some states (like California) they were capped on how much they could increase premium. I belvie they had recent changes to that policy which has allowed insurance companies to increase premiums more. Insurance companies are now doing that to recover losses.

A lot of the smaller companies have stopped doing insurance according to my broker. Ones that still are (like the big companies) have had a lot of changes. Allstate won’t insure you if you have two claims in 5 years. And they don’t care if it was a different house! Have a rental property that needed a roof in 2021, and my primary home needed one in 2022 all from hail. I’m not longer insurable to them until one falls off.

Other companies like State Farm have increased their deductible from 1 to 2 percent. Think Allstate will let you keep a 1.5 if you are an existing customer. Anyone else is going to 2. This situation isn’t going to get better. Not with inflation still increasing. Buckle up, guys. It’s going to confuse to be dicey.

...but my auto and home did not go up by much at all.

Now my car is 15 years old and I don't have collision and haven't for about 10 years.

Even the insurance I used for liability/medical for the baseball league I am part of went down in price.

Weird.

by state?

I have about a 20% increase, but man the real damage is about to hit.

I currently have 4 cars and 4 kids on my policy and I'm about to have 5 cars and 5 kids and one of the cars will be a 2024.

I am expecting some damage.

In comment 16469847 pjcas18 said:

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by state? I have about a 20% increase, but man the real damage is about to hit. I currently have 4 cars and 4 kids on my policy and I'm about to have 5 cars and 5 kids and one of the cars will be a 2024. I am expecting some damage.

sorry, not 4 or 5 kids, I meant drivers.

5 cars, 5 drivers. only 3 are kids.

In comment 16469682 beatrixkiddo said:

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Policy double on us when it was time to renew late last year. Called my agent, she didn’t care pretty much said it is what it is. I said ok, goodbye.

Did the same last week, same 'go feck yourself' response.
Boca Gene may have something.

UConn, timely thread, thanks.
btw where does Spencer go? I think you said a week ago tonight that all 5 starters are likely to leave.

In comment 16469647 BocaGene said:

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If you are a Costco member, get their Connect insurance, which is American Family. I bundled home & auto and got the best price after shopping around. I've had auto with them for a couple of years and the yearly increase was minimal; so now I got home with them also.

Gene, flesh that out a bit if you don't mind. What's the portal to get to Connect/American Family?
tnks

In comment 16469885 ColHowPepper said:

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In comment 16469647 BocaGene said:Quote: If you are a Costco member, get their Connect insurance, which is American Family. I bundled home & auto and got the best price after shopping around. I've had auto with them for a couple of years and the yearly increase was minimal; so now I got home with them also.//// Gene, flesh that out a bit if you don't mind. What's the portal to get to Connect/American Family? tnks

In comment 16469885 ColHowPepper said:

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In comment 16469647 BocaGene said:Quote:If you are a Costco member, get their Connect insurance, which is American Family. I bundled home & auto and got the best price after shopping around. I've had auto with them for a couple of years and the yearly increase was minimal; so now I got home with them also.//// Gene, flesh that out a bit if you don't mind. What's the portal to get to Connect/American Family? tnks

////////
Just googled the name, interesting, banner box that appears:

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California and Florida members: The Costco Insurance Agency is currently not offering new auto or home insurance policies in CA or FL.

Said my area had been flagged as fire hazard zone.
Adios Allstate, hello State Farm. Big savings on Auto Insurance also.

over the past 12 months. Guess which was number 1 - yep, auto insurance and repair. Not even close. 22 and 11% increase, respectively.

Groceries? Just 2.2%. Rent? 5.7%

In comment 16469884 ColHowPepper said:

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In comment 16469682 beatrixkiddo said: Quote: Policy double on us when it was time to renew late last year. Called my agent, she didn’t care pretty much said it is what it is. I said ok, goodbye. Did the same last week, same 'go feck yourself' response. Boca Gene may have something. UConn, timely thread, thanks. btw where does Spencer go? I think you said a week ago tonight that all 5 starters are likely to leave.

I’m seeing late 2nd rounder. I can see him being a spark plug last man on the bench. He has NBA 3 range and outworks everyone, just not athletic.

Not a winning lottery ticket.

he was glue vs ALA and Purdue

Go to https://www.costco.com/services.html and scroll down past the Audi buy deal.

[/quote]

You can do the home insurance quote workup online there.
Costco Connect Insurance - ( New Window )

In comment 16469994 BocaGene said:

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You can do the home insurance quote workup online there. Costco Connect Insurance - ( New Window )

I might have to go this route - how reputable are they and do you jump through hoops for claims?

contact USAA Insurance 800 5318722. I changed my auto and Peronal Umbrella to them a fewyears ago and saved a
bundle

In comment 16470008 UConn4523 said:

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In comment 16469994 BocaGene said: Quote: You can do the home insurance quote workup online there. Costco Connect Insurance - ( New Window ) I might have to go this route - how reputable are they and do you jump through hoops for claims?

To add, reviews don’t look good which I know can be misleading but not saying much positive feedback.

I might have to go this route - how reputable are they and do you jump through hoops for claims? [/quote]

Never made a claim, so can't say. As for rep, if Costco is standing behind them, I am confident. Costco member since 1992.

In comment 16470010 turkey said:

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contact USAA Insurance 800 5318722. I changed my auto and Peronal Umbrella to them a fewyears ago and saved a bundle

Ha, USAA jumped my car insurance almost 100% in the past two year. Homeowners about 40%. No claims. Infuriating. My kids all dropped USAA because of the increases. Used to be if someone asked me about updating my insurance and I said I have USAA they laughed and walked away.

Yes I live in So FLA in the same bullet proof house that has been in 5 direct hits without any damage. So it is angering.

In comment 16469909 islander1 said:

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over the past 12 months. Guess which was number 1 - yep, auto insurance and repair. Not even close. 22 and 11% increase, respectively. Groceries? Just 2.2%. Rent? 5.7%

Makes sense with the rise in EV’s. The way they are constructed if they get in even a minor accident the whole car is most often a total. Repair costs also insanely higher than gas vehicles. Was only a matter of time until it started to affect the entire insurance industry.

The more they pay out they have to get more money to be able to keep paying out. If they had to pay everyone out they go under.

I am also sure there have been no cuts to the insurance execs salaries.

In comment 16469740 Danny Kanell said:

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In comment 16469722 Blue21 said: Quote: We are paying for all the catastrophes in the country. They are. I work for an insurance carrier. Reinsurance costs are through the roof because of all the catastrophic events the past couple of years. Couple that with inflation - cost of literally everything is much more than it was 2 years ago (Much much more 5 years ago), including construction materials, car parts, labor, defense costs - everything. So the reinsurance costs are killing the carriers and the only way to make it up is to pass it to the consumer. Probably the least talked about negative impact of inflation that has one of the biggest effects on almost everyone. Not trying to get political but most of the big companies - The Travelers, AIG, Hartford, Berkshire Hathaways of the world expect things to significantly settle down or at least level off if things go a different direction in November.

THIS. I'm in the insurance business 40+ years. Material and labor costs sky rocketed since Covid and it's finally catching up to the insurance industry. Had a client who suffered a major homeowners loss (fire) and it took 18 months to get it fully repaired and back into the home. It normally would take 8 - 10 months but a backlog of materials etc cause the delay. Note the insurance company is paying for them to live elsewhere during this time adding to the costs.

In NJ major carriers such as Allstate and State Farm have stopping writing new auto and homeowners all together.