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Big insurance increase (State Farm)--anyone else?

White Stallion 11

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Have been reading this thread from the outset and I have some observations--

1. I have been in the insurance industry for over thirty years (life, health, casualty and auto); and I have been a Mustang owner continuously since 1968.

2. Most of what I've read on this thread is very emotionally charged for a variety of reasons; given one's perception of the industry's intentions or unfavorable experiences in underwriting or claims experiences with insurers or their agents.

3. Irrespective with whom you insure your car, either stand-alone or as a part of a comprehensive package with an insurer, there are a multitude of factors that are considered in the underwriting process which can lead to complexities in a company's determination as to whether or not to make you an offer of coverage, with or without a rate-up.

4. Should any of you believe that you have been harmed, or in the process of being harmed by an insurer, in terms of being denied coverage or being rated-up, each state has an insurance commissioner whose primary responsibility is to police the industry for unethical practices and to look out for your well being in resolving any difficulties you may have with an individual insurer.

5. All the above being said, before engaging with an insurer, obtain a list of all auto insurers licensed to conduct business in your state from your state department of insurance, and inquire as to whether or not they have any instance or record of disciplinary action for unethical conduct.

6. Lastly, shop around and remember, it may require some time and effort on your part as there is no set-piece or cookie cutter process used by an insurer in making an offer of coverage. We can't compare the premiums we pay with one another as offers of coverage is on an individual case-by-case basis; specifically, the proposed insured's individual credit report, locality, age, driving record, make and model of vehicle, annual mileage, repair costs, stated intended vehicle use (pleasure, business, historic, show, etc.), and the insurer's loss history in the state the company offers coverage.

Hope this helps.

RJ
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kz

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Big brains here are figuring out that insurance companies are there to make profit (in a capitalist market economy - mind you) and not make them happy.

All the information that companies use to determine your rate (including your credit worthiness) - they've been allowed to have in the spirit of deregulation or being pro-business (or some similar nonsense). It's all great until it works against you.
 

wynand32

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What's stopping you ? Sounds like a great plan.



It's an industry - it needs to make money and sustain all the people working in it. And if it can bring more money, why not tried to do so ?
It's capitalism, system that everybody says it's absolutely the best until you realize that it only works for corporations.

But on topic - insurance companies keep dropping people that have multiple claims, you can't insure Kias and Hyundais in some places, all that is happening. What you're paying for is someone 16th yacht, not someone elses rebuilt home.
What's so ridiculous about these kinds of arguments is that if things like insurance were scams or "pyramid schemes" or just the means for someone to buy their 16th yacht (jealous much?), then every very wealthy person in the country -- each of whom would be a part of such schemes, by that logic -- would be pouring their money into insurance companies.

Of course, they're not. This should be a hint that, e.g., running an insurance company, is profitable, yes and thankfully so, but not stupidly so.
 

White Stallion 11

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Big brains here are figuring out that insurance companies are there to make profit (in a capitalist market economy - mind you) and not make them happy.

All the information that companies use to determine your rate (including your credit worthiness) - they've been allowed to have in the spirit of deregulation or being pro-business (or some similar nonsense). It's all great until it works against you.
You're partially correct; however, it all boils down to the company taking a risk on the potential insured and they want to minimize the risk on those they accept for coverage. Those of us who have clean driving records and remain accident free will always pay a preferred lower premium, and there are some companies who offer accident forgiveness for those who rarely, if ever, have at fault accidents. As I mentioned before, due diligence and shopping the market place are the keys to success.

With regard to the insurance business (all of it) is a highly regulated industry from state-to-state and insurance companies must spend big sums of money in order to comply with complex regulations (which may include premium pricing restraints in underwriting and policy issuance) while simultaneously working to turn a profit in order stay in business. If not, they will stop offering coverage in a given state or local area.
 

ice445

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Imo if you can shop insurance and find a lower rate with equivalent coverage, the company you're with was just taking advantage of you. If you can't? You're unfortunately the problem in some capacity.
 

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White Stallion 11

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Imo if you can shop insurance and find a lower rate with equivalent coverage, the company you're with was just taking advantage of you. If you can't? You're unfortunately the problem in some capacity.
Precisely.
 

DougS550

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Precisely.
Corporations who own Insurance Companies are as greedy as Car salesman and lawyers. They do not care about their customers only their profit margins. And they have I directly scared policy owners from filing smaller claims with fear of raising their rates and just pay out of pocket. I would guess less than 10% of all policy owners ever file a claim each year which gives them extremely high profits as everyone can see by searching the internet on their quarterly profits which are crazy high. So for anyone In the I surance business to even try to justify such an appearance Greed is none sense to say the least.
 

MAGS1

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Keep in mind insurance companies are required by law to hold a certain amount of capital to cover not only claims but also their investment portfolios. And yes, insurance companies have investment portfolios (that’s how they make their money, by investing their premiums). Different types of investments require different amounts of capital reserves (calculated as a % of asset values). So if you look at balance sheets and see lots of cash, that’s a big chunk of what you’re seeing.

So with that in mind, look at their combined ratios, that will tell you how profitable they actually are (combined ratios factor in catastrophe losses). The closer to 100% they are, the less profitable they are. Over 100% and they’re losing money. Generally, a combined ratio in the low 80%’s is pretty good for insurance companies that provide both home and auto insurance.

None of this factors in spending excess cash on stock buybacks, don’t get me started on that charade. But in general, their margins are thinner than some people think.

Probably more info than anyone really cares about but thought I’d throw it out there
 
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White Stallion 11

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Keep in mind insurance companies are required by law to hold a certain amount of capital to cover not only claims but also their investment portfolios. And yes, insurance companies have investment portfolios (that’s how they make their money, by investing their premiums). Different types of investments require different amounts of capital reserves (calculated as a % of asset values). So if you look at balance sheets and see lots of cash, that’s a big chinkwhat you’re seeing.

So with that in mind, look at their combined ratios, that will tell you how profitable they actually are (combined ratios factor in catastrophe losses). The closer to 100% they are, the less profitable they are. Over 100% and they’re losing money. Generally, a combined ratio in the low 80%’s is pretty good for insurance companies that provide both home and auto insurance.

None of this factors in spending excess cash on stock buybacks, don’t get me started on that charade. But in general, their margins are thinner than some people think.

Probably more info than anyone really cares about but thought I’d throw it out there
You are correct and it's good that we're having this discussion in order to present a clearer picture of the issue--overall, they operate on thin margins.
 

lo-fi

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I didn't notice a big increase but I was shocked at how high my premium was for my new to me 2018 Mustang GT. My E46 M3 and 2009 C63 AMG premiums are far lower. What the H.E. double hockey sticks you boys been doing in these cars 😁?
 

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Cory S

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Just a few Corporations now own insurance company's and can price fix without getting in trouble. The US economy has cratered in the last 3 years and getting worse. Go Figure.
Those mean tweets though.
 

Nawsad123

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Didnt read all 14 pages, but just got my renewel for 6 months and went up from 750 to about 1150 on a two car total. When asked the reason for the 40% increase, I was given the cold shoulder and was indicated that those are the new rates....GEICO, im done. Any reccs on who to go with?
 

ice445

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Didnt read all 14 pages, but just got my renewel for 6 months and went up from 750 to about 1150 on a two car total. When asked the reason for the 40% increase, I was given the cold shoulder and was indicated that those are the new rates....GEICO, im done. Any reccs on who to go with?
GEICO and Allstate quoted me the exact same rate for 2 cars, but I switched to State Farm because they had a much nicer rate. Progressive was much nicer as well. So try those two.
 

Nawsad123

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GEICO and Allstate quoted me the exact same rate for 2 cars, but I switched to State Farm because they had a much nicer rate. Progressive was much nicer as well. So try those two.
Yup Allstate literally took geicos quote and spit it back at me - will be looking at State Farm tomorrow. For some reason I tried getting a quote from Progressive online and received a message they could not give me one based on the vehicles I have (2017 Mustang 2016 Cayenne). Im thinking bc im in washington and neither vehicle is equipped with a tracking device? I checked no on that box when asked...
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