…. the money has to come from somewhere.

I wonder how many insurance claims are legitimate. And wonder why its become common place to claim everything under the sun with the insurance company. As long as these themes of “stick it to the insurance company” prevail, rates have no where to go but up, as will the responses of not wanting to take on the liability/responsibility.

For example, I wanted a replacement oem windscreen, not the authorized replacement. That comes out of my pocket.

 

The economy is in shambles and getting worse in the US for everyone except the ruling class and wealthy? You don't say! The article alludes to the fact it will be all insurance customers feeling this sting. Also, is $1,668 really an "average!"? I haven't paid close to that, like nowhere close to that (meaning, I have and continue to pay far less). That is crazy.

It is this exactly that causes not only auto insurance to go up, but ALL insurance to go up. People are using insurance as a financial tool instead of a hedge against bankruptcy. Unfortunately, we are now stuck in it. What i mean is that insurance has always supposed to have been insuring against bankruptcy, not to pay $500 deductible to replace a $700 window...which people do ALLLL the time (Hey, I save $200 bucks, right? Yeah, wrong). I don't lease nor finance vehicles anymore, but when I did, I'd have the highest deductible allowed by the lienholder. Then, I could sock that away in an interest bearing account and earn money on it while not using it, as well as the saved money on premiums. This is not rocket science, but there is so much money to be made and is easily achieved by the sheer lack of financial ignorance of honestly the middle of the bell curve. Anyway, you are absolutely right in your assertion here. Insurance is not used appropriately anymore and those of us with even a modicum of financial sensibility end up paying the price.

"Think about how stupid the average person is. Then realize half of people are stupider than that" -- George Carlin

 

Actually, no. It's not bad at all, everything considered (like the mess it was from 2019-2020 with covid and all) and getting better since then. Unless you watch *** nooz, of course. They have a penchant for overwhelming dishonesty. This is getting too close to politics for this site though.

 

Well, I watch zero news nor have I ever had social media. I like to figure things out for myself and not get told what to think and what I should care about, but what I do is live my life and pay close attention to my finances and to claim that it's not bad at all seems out of touch with reality at least for the lower and (what used to be) middle class, my friend. I honestly don't get this position. Now, if you happen to be wealthy, then maybe that is your reality; however, that too, is not something I would relate to. Not even worth getting into, especially here where it is inappropriate to do so. Wouldn't matter though. No one can be convinced to change their mind about anything anymore.

 

If you didn't believe me when I warned of "substantial rate increases", read the attached article, "Car Insurers Are Bleeding Money", ©The Wall Street Journal, dated today, February 26, 2024, "

 

I tend not to make sweeping generalizations. And I wasn't attempting to do so. What I was saying is that it's not necessarily the case across the board. I don't carry full coverage, all drivers in the house have excellent credit and driving records. Just received my premium renewal Friday it was $24 more for the year. So I guess I concede you are right as they did go up. Though I wouldn't necessarily call this something to fret about. Again that's my own individual singular personal experience. I can imagine someone carrying full coverage with a $500 deductible and half a million liability probably are more of the issue and are going to experience more of the rising cost than anybody else, especially those that use the super high overhead big guys like State Farm, Nationwide, allstate, travelers etc.

 

@tergitkerd , there's a reason why your insurance premiums didn't skyrocket.

That's because Erie does business only in 12 states— Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin—and the District of Columbia. Erie didn't suffer casualty losses to the same extent as the big companies that do business in all 50 states. 2023 was a bad year for losses caused by forest fires, floods, hurricanes, tropical cyclones, and other weather events that hit states bordering the East Coast, Gulf of Mexico, West Coast, and Hawaii. Erie's exposure to those events was limited.

LImits of liability and high deductibles make a big difference in premiums.

Erie Insurance Fact Sheet

 

I have to agree with tergitkerd. My Hartford policy for 4 cars has hardly budged, my Travelers home insurance went up less than 50 bucks. Each individual may experience differences. My single car Hagerty insurance hasn't changed, either. And the quote for the coming (I hope) XKR was $560.
I find that people who expect and look for only bad news can easily find it. Bad news and fear are what advertisers thrive on. Also, since the Wall Street Journal is owned by Rupert Murdoch, I never expect a lot of positivity coming out. I read it, but compare other sources and opinions. They seem to be able to dig up every doom and gloomer out of the woodwork whether the market is booming or not. Much of the "bleeding" can be attributed to all the natural disasters. I will agree with Stuart S on one point. It's hard to change anyone's mind. I hope he's including himself in that statement, right?
Cheers!

 

DJ, whether I agree with you that it's hard to change my mind depends on what the meaning of the word "hard" is. According to this expert ...

 

Classic

Honestly, more than one thing can be true at a time. My entire point was simply this. Hey, I have Erie for a while now. They have been great. Really affordable and top-notch claims and customer service, give them a shot if they cover your area, at least with a quote. That is it really. Wasn't making any other claims beyond that really.

 

I have two teenage kids driving. The insurance on my car is barely a blip.

 

Yeah, my 2 boys have been out of the house for 9 years now so I had a lull, but my 16 year old daughter will be driving soon though she is in no hurry. But when she does, well, then I won't be singing the same tune. One thing about Erie I don't like is that you have to insure the teen for every car in the house and not just specifically their car. From their point of view, I guess I get it but still.

 

Allstate,Liberty mutual,State farm are all insurance companies that insured me over the years for my 2013 jaguar XKR.I only switch when i find out i can get a cheaper policy from a different company

 

Mannn that's a cheap great deal!Im paying next to $500 a month!

 

In the USA, car insurance rates vary by state. The average cost for car insurance increased by 20.3% from December 2022 to December 2023, according to data from the U.S. Bureau of Labor Statistics.

Where does your state stack up? See this article published today by consumer advocate Clark Howard:

The Most and Least Expensive Car Insurance Rates By State

This is likely to cause disagreement, and I look forward to your entertaining comments!

 

This doesn't hurt insurance companies anywhere near as much as using insurance to pay for a say roof replacement (see Florida for an example). And every body shop knows the trick of getting additional items to the claim, oh and only at dealer, OEM parts prices, or getting you a "free deductible". I can't imagine that they care about the people who use a $500 deductible to pay for a $700 repair.

 

Hard to tell but it looks like in that picture the UK prices are the ones really jumping which tracks with the constant insurance talk on the facebook car groups which for some reason are about 90% British. Range Rover especially

 

Interesting chart, but I guess you really need your own specific data. Take my state for example, has an annual average of $2112 for one car, yet my total cost for 3 cars is only $1953. Maybe it will jump this year, we’ll see.