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American Family 48% increase

2Driver

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Just got the notice for the 3 cars - 48% increase. Over 2 years its a 68% increase just for the auto.

No tickets, No accidents
3 cars, house and umbrella

Agent says expect a 20-40% increase on the house next billing cycle.
 
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Ace in the Hole

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October of 2020 through now I’m 250% higher. Same vehicles. Progressive. Every company was within single-digit dollars of each other, When I shopped it the week before last
 

Flatsix66

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Oddly enough our Tesla policy dropped 20% from 2023 but our other cars/trucks are all up about that same amount this year.
 

shintoooo

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This should help lol!!

 

BHC Vic

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This should help lol!!

Well played
 

Boozer

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I’ve got two cars on my policy. I’m the only listed driver. No tickets, no accidents I pay $425 a month. It’s almost doubled over the last few years.

Insurance is getting crazy and sadly there’s no end in site to these price hikes, Vehicles are getting more expensive of repair and the weather has caused a lot of issues.
 

NicPaus

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Over 40% with Allstate. Just added another rig yesterday. Didn't ask the price .
 

OLDRAAT

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My insurance increases were definitely unexpected based on my vehicles and properties, especially where I live. :(
 

SixD9R

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Here’s the root cause of most problems in the country right now

IMG_8304.jpeg
 

hallett21

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Here’s the root cause of most problems in the country right now

View attachment 1328852
Don’t get me wrong I love a good Brandon trashing thread lol.

But hasn’t this been a result of a crappy 2021-2022 stock market. As well as billions if not trillions paid out for CA fire victims and Texas freeze victims?

Insurance companies lost their ass (I’m sure they really are fine but everyone loves crying poor) in these events and are trying recoup the loses. After all they have shareholders to answer too.
 

TimeBandit

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Thank the thousands of lawyers who milk every fender bender for thousands of dollars in "damages".

Not to mention body shops that charge $100. per day storage for parking a car outside.

Have you priced potato chips lately?
 

CLdrinker

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Look at fires burning down complete cities, look at the cost of repairs to cars after accidents. Hell minor fender benders turn into complete totals. Look at the sign and drive UTV’s. Buy Friday crash Sunday claim on Monday.

Then look at minimum wage increases. That means all the insurance employees need to make more, the bottom employee get a raise and then the people above them get a raise and it dominoes all the way to the top.

What line of business eats cost increases?

All of the above is passed on to the consumer.
 

Sawtooth

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So I’m not the only one with insurance woe’s…….Back in April my homeowners insurance renewal notice over doubled, I called to inquire as to why after being with them 14+ years. First thing outta the agents mouth was “you should be thankful you even have a policy renewal offer” 😳 WTF!!
So fast forward and I ended up bundling my house with my car insurance provider and that saves me over $1100.00, new homeowners policy started in June. In November I receive a letter stating the underwriter flew a drone around/over my house and my pool is considered a “trip fall hazard” and if I don’t have it operable by March 15th I would receive a non renewal notice (I’m remodeling my backyard/pool).
So then today I received a text from said insurance company telling me they would not be renewing my newest auto policy. (End of October I bought a new to me chevy 3500 dually that they gladly took my premium on to go along with my two other trucks). I called to find out what am I missing and was told “they are streamlining their business platform and because it’s a 3500 it does not qualify as a “personal passenger vehicle” and therefore could be used as a commercial vehicle”……say what?!?!
Needles to say I’ve got to start shopping trucks and house before March. And Fuck that little lizard 🦎!!!!
 

hallett21

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Look at fires burning down complete cities, look at the cost of repairs to cars after accidents. Hell minor fender benders turn into complete totals. Look at the sign and drive UTV’s. Buy Friday crash Sunday claim on Monday.

Then look at minimum wage increases. That means all the insurance employees need to make more, the bottom employee get a raise and then the people above them get a raise and it dominoes all the way to the top.

What line of business eats cost increases?

All of the above is passed on to the consumer.
I’m in agreement except for the fact that they make their money in the market. They want to make it out like they make nice gentle returns of 5%. And then for the first time ever lost money in 21-22.

On a killer year they just pay out their profits as bonuses, buy real estate etc. In a losing year they throw their hands in the air and say no one saw this coming lol.

Meanwhile a part of their business is “subsidized” by the federal government. You cannot have a mortgage or car driven on the road without insurance. Nice guaranteed revenue stream.

Reality is if 2024 and 2025 were the best returns in the world rates would not go down. They insulate themselves to weather the storm and then double down on the good years.
 

Markus

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Car insurance is far too cheap in the United States. Most insurance companies are losing money, and payouts are still too low to cover damages.

Prices need to go way up.
 

TonyFanelli

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Perhaps they should quit paying for the gay ads that run 24-7 on every channel...Jake from State Farm is most likely raking in 5+ million a year, let alone paying Mahomes, Kelcey, and all the other twits. Don't forget about Flo and the cast of progressive, or lemu emu...imo, waaay too much $ going out forwoke stupidity.
 
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Looking Glass

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Don’t get me wrong I love a good Brandon trashing thread lol.

But hasn’t this been a result of a crappy 2021-2022 stock market. As well as billions if not trillions paid out for CA fire victims and Texas freeze victims?

Insurance companies lost their ass (I’m sure they really are fine but everyone loves crying poor) in these events and are trying recoup the loses. After all they have shareholders to answer too.


I was always taught that "Insurance Companies" were in the "RISK" taking business🤔, and betting there would be No Accidents, Fires, or Natural Disasters, and Customers, are thinking there will be. The Insurance companies are taking as much of the Risk out as possible.:confused:

The Fires in Hawaii were a factor in the increases


How many "Uninsured Motorists" are driving around?:rolleyes:
 

Markus

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Stop the wishful thinking.

This is not a matter of marketing spend.

Claims costs are by far the biggest costs for an insurance company, and that is where the problem lies. So risks will need to go down and/or premiums up.
 

TonyFanelli

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I was always taught that "Insurance Companies" were in the "RISK" taking business🤔, and betting there would be No Accidents, Fires, or Natural Disasters, and Customers, are thinking there will be. The Insurance companies are taking as much of the Risk out as possible.:confused:

The Fires in Hawaii were a factor in the increases


How many "Uninsured Motorists" are driving around?:rolleyes:
How many "Uninsured Motorists" are driving around?

That insured motorists pay for 😡
 

hallett21

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Stop the wishful thinking.

This is not a matter of marketing spend.

Claims costs are by far the biggest costs for an insurance company, and that is where the problem lies. So risks will need to go down and/or premiums up.
But most of these companies are writing policies for auto, home, term life, RV/Boat etc.

So while maybe they’re “losing” on auto I’m sure they’re doing ok on the others.

Ideally these companies should be investing the millions/billions of dollars they receive in payments to build a fund. That way in a bad year they can cover. Even if their return was 4-5% annually on investments, compounding interest should build that fund pretty quickly. Especially when your can change rates on clients every 6-12 months.

Here’s some advertising budgets lol. I’m sure Geico is just having a rough time. There’s no way Berkshire shifts profits for losses across its multiple businesses 😁.

IMG_3962.png
 

HALLETT BOY

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Maybe this has something to do with it …
The City of Dallas, Texas, passed an ordinance stating that if a
driver is pulled over by law enforcement and is not able to provide
proof of insurance, the car is towed. To retrieve the car after being
impounded, they must show proof of insurance to have the car released.
This has made it easy for the City of Dallas to remove uninsured cars.
Shortly after the "No Insurance" ordinance was passed, the Dallas
impound lots began to fill up and were full after only nine days.
Over 80% of the impounded cars were driven by illegals. Now, not only
must they provide proof of insurance to have their car released, but
they also have to pay for the cost of the tow, a $350 fine, and $20
for every day their car is kept in the lot. Guess what. Accident rates
have gone down 47% and Dallas' solution gets uninsured drivers off the
road WITHOUT making them show proof of nationality. I wonder how
SLEEPY JOE will get around this one.
 

monkeyswrench

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Maybe this has something to do with it …
The City of Dallas, Texas, passed an ordinance stating that if a
driver is pulled over by law enforcement and is not able to provide
proof of insurance, the car is towed. To retrieve the car after being
impounded, they must show proof of insurance to have the car released.
This has made it easy for the City of Dallas to remove uninsured cars.
Shortly after the "No Insurance" ordinance was passed, the Dallas
impound lots began to fill up and were full after only nine days.
Over 80% of the impounded cars were driven by illegals. Now, not only
must they provide proof of insurance to have their car released, but
they also have to pay for the cost of the tow, a $350 fine, and $20
for every day their car is kept in the lot. Guess what. Accident rates
have gone down 47% and Dallas' solution gets uninsured drivers off the
road WITHOUT making them show proof of nationality. I wonder how
SLEEPY JOE will get around this one.
Auctions in Dallas, or are all the cars going to the banks? I remember working in the hood in SoCal, and every car there was nicer than I was driving...
 

hallett21

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Same here.

2022 F250
2020 CT5
2021 Yukon

$10k/yr. Wtf?!??
So let’s say you keep your nose clean for 3 years starting now. At 5% compounding they’ve made 37k. There’s a little variance between you paying monthly vs full payments.

At 5 years it’s 61k.

At 7 years it’s 88k.

Now times that by the 1,000 other clients like you lol. Their return grows pretty damn fast lol.
 

NicPaus

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I have not got my commercial policy yet for the year. I pay in full as they offer a hefty discount. But I have heard from a few get the lube ready. 1 guy has 10 plumbing rigs. His cost went to 60k a year. Another with 20 went to 105K a year. That doesn't cover any tools need a separate policy for that.
 

Gramps

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I’ve got two cars on my policy. I’m the only listed driver. No tickets, no accidents I pay $425 a month. It’s almost doubled over the last few years.

Insurance is getting crazy and sadly there’s no end in site to these price hikes, Vehicles are getting more expensive of repair and the weather has caused a lot of issues.
" ......the weather caused a lot of issues" ??????????????????? How does the weather impact auto insurance????
 

Outdrive1

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I’ve been using Brad Stern with Farmers for years. Haven’t really seen any dramatic rate increases. 🤷🏼‍♂️
 

RichL

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But most of these companies are writing policies for auto, home, term life, RV/Boat etc.

So while maybe they’re “losing” on auto I’m sure they’re doing ok on the others.

Ideally these companies should be investing the millions/billions of dollars they receive in payments to build a fund. That way in a bad year they can cover. Even if their return was 4-5% annually on investments, compounding interest should build that fund pretty quickly. Especially when your can change rates on clients every 6-12 months.
Guess I'm getting old. Back in the day it was my understanding that was how it worked.
 

02HoWaRd26

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Every other add on tv is a damn lawyer wanting to sue. These bastards need hung. People need to wake up.
Well they counter it with the commercial before being for an insurance company. Along the i40 count the lawyer billboard’s there’s 6 between Kingman and Griffith alone for one lawyer that is a personal injury guy. Lawyers and Insurance are both raking it in on the good drivers.
 

Cole Trickle

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So let’s say you keep your nose clean for 3 years starting now. At 5% compounding they’ve made 37k. There’s a little variance between you paying monthly vs full payments.

At 5 years it’s 61k.

At 7 years it’s 88k.

Now times that by the 1,000 other clients like you lol. Their return grows pretty damn fast lol.
Dont forget about the home policy where the customer has made 2 payments and there was a 100k water loss pay out. Or the Auto policy that totals the new 100k escalade 3 months in because they were using the cell phone and rear-ended a new tesla model S and injured everyone.

Claims are thorough the roof. There is no doubt they make/made money by investing the monies they have to keep in the bank for claims but if you think they were making over 5% with risky investments you don't understand the game. Insurance companies are typically very very conservative.

Claims pay outs typically exceed 55%+ then factor in commission to agents/overhead its not a get rich quick scenario.

I would say water losses are a much bigger deal for homes than Fires in So cal.

Most clients don't stay for 8 years.
 

hallett21

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Are you saying they invest at less than 5%?

The risk is writing the policy. But what you do with that money can be relatively conservative. Unless you were AIG lol.
 

Ace in the Hole

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I’ve been using Brad Stern with Farmers for years. Haven’t really seen any dramatic rate increases. 🤷🏼‍♂️
My boat policy through foremost/bostick hasn't moved a nickel in three years. Have my enclosed car hauler, and another trailer through them as well. Auto isn't with them and its wild.
 

Cole Trickle

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Are you saying they invest at less than 5%?

The risk is writing the policy. But what you do with that money can be relatively conservative. Unless you were AIG lol.
I believe the biggest issue is they typically invest in long term bonds. Once the fed raised the rates and they were locked in and inflation kicked in they were actually loosing money on investments. Same issue that some of the smaller online banks were having.
 

hallett21

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I believe the biggest issue is they typically invest in long term bonds. Once the fed raised the rates and they were locked in and inflation kicked in they were actually loosing money on investments. Same issue that some of the smaller online banks were having.
And now rates are up, both on bonds and insurance policies lol.

So if rates come down, they’re on right side of the investment times 2.
 

EmpirE231

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So let’s say you keep your nose clean for 3 years starting now. At 5% compounding they’ve made 37k. There’s a little variance between you paying monthly vs full payments.

At 5 years it’s 61k.

At 7 years it’s 88k.

Now times that by the 1,000 other clients like you lol. Their return grows pretty damn fast lol.
You do construction, right? How many slab leak remodels / overhauls are you seeing and what are the average costs associated? We have one claim where someone's pet lizard knocked over a heat lamp and caught the house on fire.... so far 550K paid out, and the claim is not closed yet. Their annual premium was around 1100/yr, and had owned the house for about 3 years.

when was the last time you've been on a freeway and not seen an accident or debris on the road from a previous accident?

I've mentioned it in all the insurance threads, but unfortunately rates are going up... way up.
 
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