The insurance industry has become predatory

[EmpirE231]

The increased frequency and severity of fires, flooding, and wind events is making parts of America economically uninsurable.

Going to get even tougher for some homeowners and a real problem.

It's not the increase of a overly litigious society, increase in vehicle prices, body shop rates... increase in the average MPH vehicle crash due to cell phone use.... restoration companies pillaging homeowners insurance carriers. increase in fraud. Baseless smoke and ash claims. Decreased brush and forest cleanup from the state? The fact that the insurance commissioner of CA refused to allow carriers to increase rates for about 24 months due to covid all while inflation soared? etc etc

no it's all climate change according to you? what a joke.

 

[530RL]

It's not the increase of a overly litigious society, increase in vehicle prices, body shop rates... increase in the average MPH vehicle crash due to cell phone use.... restoration companies pillaging homeowners insurance carriers. increase in fraud. Baseless smoke and ash claims. Decreased brush and forest cleanup from the state? The fact that the insurance commissioner of CA refused to allow carriers to increase rates for about 24 months due to covid all while inflation soared? etc etc

no it's all climate change according to you? what a joke.

For me, it has nothing to do with the political topic known as “climate change”.

With respect to increases in rates, your items above naturally have an impact on rates rising faster than the rate of inflation. I laugh when I hear people talk about how they didn’t pay for it, but the insurance company did.

With respect to insurance companies no longer wishing to underwrite in certain areas, as was the point of the post, It has to do with the empirical fact that there are more fires, more flooding and more wind events all of which keep re-occurring in the same areas and are now occurring in areas they did not occur in before. These re-occurring and ever growing events create catastrophic losses for insurers that are nearly impossible to model out actuarially. As a result, there is no rate at which the juice is worth the squeeze. Too much risk. That was the point.

Not every problem in life boils down to politics. Some can be objectively measured and assessed for cause and effect.

 

[EmpirE231]

For me, it has nothing to do with the political topic known as “climate change”.

With respect to increases in rates, your items above naturally have an impact on rates rising faster than the rate of inflation. I laugh when I hear people talk about how they didn’t pay for it, but the insurance company did.

With respect to insurance companies no longer wishing to underwrite in certain areas, as was the point of the post, It has to do with the empirical fact that there are more fires, more flooding and more wind events all of which keep re-occurring in the same areas and are now occurring in areas they did not occur in before. These re-occurring and ever growing events create catastrophic losses for insurers that are nearly impossible to model out actuarially. As a result, there is no rate at which the juice is worth the squeeze. Too much risk. That was the point.

Not every problem in life boils down to politics. Some can be objectively measured and assessed for cause and effect.

The problem in CA specifically has a lot more to do with politics unfortunately.

1. Carriers weren't given the rate increase they requested due to the insurance commissioner trying to be political
2. Carriers stop writing new business in the state
3. The CA fair plan (state ran program) gets a flood of new business, because there are no other options
4. Carriers now want to reduce their footprint in the the state due to the fact that they are the reinsurance for the CA fair plan

IF the CA fair plan becomes insolvent / claims exceed collected premiums, the insurance carriers in the state have to act as their reinsurance carrier based on the size of their market share, hence why they are all trying to reduce their footprint / exposure.

 

[BeerMaker]

It's out of control. My policy double after 2 increases in the last year and my broker just told me they were noticed of another increase coming in May. It's absurd. I'm actually debating letting some insured items go that just aren't used enough to warrant the insurance cost.

 

[zhandfull]

Just got my homeowner renewal.

I keep making more money and everyone but me gets it.

 

[TPC]

Time to refresh regulation,, but the regulators are corrupt.

 

[TPC]

It's out of control. My policy double after 2 increases in the last year and my broker just told me they were noticed of another increase coming in May. It's absurd. I'm actually debating letting some insured items go that just aren't used enough to warrant the insurance cost.

Our AAA homeowners policy cost remains the same for now, but some frills & features removed. Getting back down to just basic coverage.

 

[Taboma]

The problem in CA specifically has a lot more to do with politics unfortunately.

1. Carriers weren't given the rate increase they requested due to the insurance commissioner trying to be political
2. Carriers stop writing new business in the state
3. The CA fair plan (state ran program) gets a flood of new business, because there are no other options
4. Carriers now want to reduce their footprint in the the state due to the fact that they are the reinsurance for the CA fair plan

IF the CA fair plan becomes insolvent / claims exceed collected premiums, the insurance carriers in the state have to act as their reinsurance carrier based on the size of their market share, hence why they are all trying to reduce their footprint / exposure

Reduced growth and reduced revenue seems like an odd business plan. Focus only on "Safe" Markets, no fire, no weather related events like tornados, or floods, and all the various insurance companies can find refuge there as they enjoy pricing each other into extinction.

 

[WildHorses24]

For me, it has nothing to do with the political topic known as “climate change”.

With respect to increases in rates, your items above naturally have an impact on rates rising faster than the rate of inflation. I laugh when I hear people talk about how they didn’t pay for it, but the insurance company did.

With respect to insurance companies no longer wishing to underwrite in certain areas, as was the point of the post, It has to do with the empirical fact that there are more fires, more flooding and more wind events all of which keep re-occurring in the same areas and are now occurring in areas they did not occur in before. These re-occurring and ever growing events create catastrophic losses for insurers that are nearly impossible to model out actuarially. As a result, there is no rate at which the juice is worth the squeeze. Too much risk. That was the point.

Not every problem in life boils down to politics. Some can be objectively measured and assessed for cause and effect.

But it is politics, companies have no problem writing in those areas you mention.... for the right premium but the state refuses to give it. This same thing happened in FL, companies got tired of replacing houses on the beach being wiped out every 5 years by Hurricanes. The CA DOI wants the entire state to burden the high risk areas and companies aren't having it. To add to @EmpirE231 list, the cost of reinsurance isn't allowed to be factored into requesting rate (which currently takes 2 years to get approved through the DOI due to the red tape and bullshit committees). Reinsurance layers have tripled their rates to majors carriers. That's literally the state saying you can't increase your prices due to YOUR cost of business becoming unaffordable.... and we're not even talking about the crazy increase in claims paid yet.

But yes, not political at all. BTW for what it's worth Richardo Lara our "all-knowing" insurance professional doesn't even hold a license. Would you trust an AG who never passed a BAR exam?

 

[TPC]

We got to really looking at our policy. What coverage can we live without.

When the homes were first built in our tract the storm drains and catch & accumulating drain ponds weren't in yet. Rains brough water from the street to our front door step. So I took out flood insurance.

No longer needed and it's pretty narrow what it covers anyway. All kinda restrictions and specific situations on it.
Cut our homeowners cost significantly dropping it. I suggest checking that out.

Then AAA evidently dropped some perks recently in order to keep the cost down. Coverage we wouldn't use anyway.

 

[Taboma]

But it is politics, companies have no problem writing in those areas you mention.... for the right premium but the state refuses to give it. This same thing happened in FL, companies got tired of replacing houses on the beach being wiped out every 5 years by Hurricanes. The CA DOI wants the entire state to burden the high risk areas and companies aren't having it. To add to @EmpirE231 list, the cost of reinsurance isn't allowed to be factored into requesting rate (which currently takes 2 years to get approved through the DOI due to the red tape and bullshit committees). Reinsurance layers have tripled their rates to majors carriers. That's literally the state saying you can't increase your prices due to YOUR cost of business becoming unaffordable.... and we're not even talking about the crazy increase in claims paid yet.

But yes, not political at all. BTW for what it's worth Richardo Lara our "all-knowing" insurance professional doesn't even hold a license. Would you trust an AG who never passed a BAR exam?

Being openly Gay, an "Environmental Champion" and having a minor in Chicano Studies, along with his vast political experience representing San Bernardino in the State Assembly, certainly trumps any necessity for possessing knowledge about his Insurance Commissioner role --- sheesh.

 

[530RL]

DeSantis: Florida insurer of last resort is "not solvent"

The state-backed insurer has been shedding policies amid a federal investigation into its financial soundness

www.insurancebusinessmag.com

 

[Ace in the Hole]

Received Cancellation notice for the end of October on the Havasu house... Roof (tile) is now 25 years old and "not compliant" with their guidelines on roof underlayment age. I already have this scheduled and contracted to be done...so I can add solar this fall...

Every comparable quote is 2x+, relayed to agent and sent copy of already planned repair prior to cancellation and seeing if that will avoid it and a rate increase..

Progressive is now over $7k a year for 4 cars/3 drivers....it was under 2k a year on the same 4 in 2021. Nothing has changed... Shipping one of those cars to Hawaii in a couple weeks, it will be $60/mo full coverage limited miles...hopefully that will drop the rest some..

Boat has stayed the same, as have my sleds, and trailers that I insure via farmers/bostick..total around $3700...

IDK how some people are doing this...

 

[Todd Mohr]

Received Cancellation notice for the end of October on the Havasu house... Roof (tile) is now 25 years old and "not compliant" with their guidelines on roof underlayment age. I already have this scheduled and contracted to be done...so I can add solar this fall...

Every comparable quote is 2x+, relayed to agent and sent copy of already planned repair prior to cancellation and seeing if that will avoid it and a rate increase..

Progressive is now over $7k a year for 4 cars/3 drivers....it was under 2k a year on the same 4 in 2021. Nothing has changed... Shipping one of those cars to Hawaii in a couple weeks, it will be $60/mo full coverage limited miles...hopefully that will drop the rest some..

Boat has stayed the same, as have my sleds, and trailers that I insure via farmers/bostick..total around $3700...

IDK how some people are doing this...

I'm over 7k a year for 3 cars, but my daughter is 17. Doubled when I added her as a driver. Easily over 10k per year with boats and jet skis. You will crap when your little one turs 16.

 

[shintoooo]

Homeowners insurance renewal just came and I got a $500 increase to $4,400. I guess I should be happy they didn't cancel me.

 

[Javajoe]

So today I went and changed insurance companies on my new Havasu house (much lower rate and better coverage) and got AZ insurance on my truck as well (currently CA.)
So I asked my agent what’s up with the whole homeowners getting cancelled thing. He said companies break even on home owner policies and only make money on auto and Life because those metrics they can track. Too many variables in home owner claims. They have also expanded their fire hazard areas to whole zip codes ever since the Ventura Fire that jump 2 miles from embers and burned 800 homes.
He said you get dropped after 2 claims normally. Statistics show after 1 claim you are 100% likely to file another and your claim will follow you to new homes and states for 5 years because they look back that far.
Also…did you know that you can get just boat Liability Insurance for around 200.00 a year with great coverage if you feel you don’t want to pay the enormous price to cover your boat or just can’t get anyone to cover your boat. Good to know for people who are having trouble with that

 

[PlumLoco]

My son got a letter from AAA informing him that because he turned 21 last month, he could no longer remain on Dad's policy.
It is going to cost him $3,000 yr to insure a 2007 Mustang.

 

[attitude]

My son got a letter from AAA informing him that because he turned 21 last month, he could no longer remain on Dad's policy.
It is going to cost him $3,000 yr to insure a 2007 Mustang.

That’s about normal, when I was 18 my 04 GTO was $250 a month.

 

[Javajoe]

My son got a letter from AAA informing him that because he turned 21 last month, he could no longer remain on Dad's policy.
It is going to cost him $3,000 yr to insure a 2007 Mustang.

AAA are the strictest insurance company

 

[Let It Ride]

I was sent a letter from my mortgage saying that my havasu house home insurance ( California Casualty) just got downgraded to a B and now doesn’t meet their qualifications. Now I have to find an insurance company with A B+ or above rating. What a bunch of

 

[Javajoe]

I was sent a letter from my mortgage saying that my havasu house home insurance ( California Casualty) just got downgraded to a B and now doesn’t meet their qualifications. Now I have to find an insurance company with A B+ or above rating. What a bunch of

Just switched to State Farm yesterday. Saved a lot of money. Call Wayne Edwards. Great guy and a fellow boater

 

[Done-it-again]

Our business auto policy just increased $4,500. Just normal vehicles (5), no large trucking...

 

[angiebaby]

I'm over 7k a year for 3 cars, but my daughter is 17. Doubled when I added her as a driver. Easily over 10k per year with boats and jet skis. You will crap when your little one turs 16.

When my son turned 18, I got him a separate policy. I still paid it for a couple of years, but it was much cheaper to have him only on the one car and not all of them. I want to say it saved us $500/year. This was about 10 years ago.

 

[Todd Mohr]

When my son turned 18, I got him a separate policy. I still paid it for a couple of years, but it was much cheaper to have him only on the one car and not all of them. I want to say it saved us $500/year. This was about 10 years ago.

I will try that when she turns 18, thanks!

 

[Cole Trickle]

When my son turned 18, I got him a separate policy. I still paid it for a couple of years, but it was much cheaper to have him only on the one car and not all of them. I want to say it saved us $500/year. This was about 10 years ago.

There is a lot to this and ways to play the game.

If you have 3+ nice cars and then an old car for the kid the kid by default will be rated on the 3rd highest rated car.

If you have 2 nice cars and then the old kids car it would be cheaper for the kid to stay on with the parents if the coverage levels are the same due to the discounts they wouldn’t qualify for alone. Personally I wouldn’t let my kid be on his own account with junk coverages as you are opening both him and yourselves up to a liability issue if he doesn’t have enough coverage for an accident. Most kids shop cheap and go minimal liability that just isn’t enough in todays sue happy world.

My kid is going to be 16 in a couple months and I bought him an older car that I plan on just running liability /comp on. I currently have 6 cars on the policy so before he is licensed I’m going to move 3 of my cars to a separate classic policy that he won’t be covered on. With only 3 cars they will rate him on the liability only car but he will still be covered to drive the other 2 cars so the price won’t be crazy or at least half as crazy as a full coverage car.

As far as AAA kicking a kid off at 21 that doesn’t seem right unless the kid isn’t a student and no longer lives at home. If a kid isn’t in school and doesn’t live with the family no insurance companies knowingly would allow him to stay on the policy. Full time students even away for there masters are allowed as long as they are full time students.

 

[angiebaby]

There is a lot to this and ways to play the game.

If you have 3+ nice cars and then an old car for the kid the kid by default will be rated on the 3rd highest rated car.

If you have 2 nice cars and then the old kids car it would be cheaper for the kid to stay on with the parents if the coverage levels are the same due to the discounts they wouldn’t qualify for alone. Personally I wouldn’t let my kid be on his own account with junk coverages as you are opening both him and yourselves up to a liability issue if he doesn’t have enough coverage for an accident. Most kids shop cheap and go minimal liability that just isn’t enough in todays sue happy world.

My kid is going to be 16 in a couple months and I bought him an older car that I plan on just running liability /comp on. I currently have 6 cars on the policy so before he is licensed I’m going to move 3 of my cars to a separate classic policy that he won’t be covered on. With only 3 cars they will rate him on the liability only car but he will still be covered to drive the other 2 cars so the price won’t be crazy or at least half as crazy as a full coverage car.

As far as AAA kicking a kid off at 21 that doesn’t seem right unless the kid isn’t a student and no longer lives at home. If a kid isn’t in school and doesn’t live with the family no insurance companies knowingly would allow him to stay on the policy. Full time students even away for there masters are allowed as long as they are full time students.

True. He didn't have a junk policy. It was the same coverage that we had at the time through AAA. 100/300 is what we usually carry on everything. He still carried full coverage for comp/collision. He wasn't paying for it yet, so he didn't have the option to shop cheap. We paid for insurance for both of the kids until they were about 20-21. Of course, anyone would want to talk to their agent about the options, but it worked out well for us.