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Old 12-31-2015, 04:29 PM   #21
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One of the things that people don't think about when wondering why their insurance rates went up is that insurance companies also have costs that go up. Employees like cost of living raises, computers have to be replaced, fleet cars cost more and have to be replaced, etc., so they have to charge customers more to cover their increased cost of operations. Also, the parts to repair a car go up every year, home materials and labor costs go up and the value of your home's contents keep going up as far as replacement goes. Insurance companies should raise rates about 3-t% every year just to keep up with inflation. if they don't do that and only revise their rates every three or four years, then they need to get a larger increase to keep up with costs.

About a third of the cost of an insurance policy is overhead for operations and your agent's commission. The better run companies this year are making something around 5-6% profit on their underwriting and a little bit more on investments.

In reality, you want your insurance company to be profitable and you want them to have the reserves set aside to be able to pay the claims when a hurricane, tornado or huge wildfire comes along and wipes out a huge area.

I know that people love to bag on insurance companies and banks, but I remember in 1986 when banks were closing and people were in a panic when their bank closed. It was fun to watch a bank close until it was your bank. I want my insurance company to have enough money to be able to pay my claims and not be wondering if they have enough to stay in business.
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Old 12-31-2015, 04:37 PM   #22
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My auto insurance went up big time.... partly because of a teen boy and partly because of claims..... but it went up 4X!!!!

I calculated the total cost of all insurance for me and it is now topping $20K.... the biggest being health....


Edit to add... when I called and got a quote for my 'high' auto, they wanted an extra $1k per year...
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Old 01-01-2016, 10:19 AM   #23
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Originally Posted by Texas Proud View Post
My auto insurance went up big time.... partly because of a teen boy and partly because of claims..... but it went up 4X!!!!

I calculated the total cost of all insurance for me and it is now topping $20K.... the biggest being health....


Edit to add... when I called and got a quote for my 'high' auto, they wanted an extra $1k per year...

I would hate to add up all the money and its opportunity cost lost to insurance over the past 35 years. When I was young and dumb and low income, I always had a nice car and nice insurance premium to go with it. Now, that I am older, I could care less about a new car. I cant stand giving money away on sales tax, property tax, and insurance. Its older cars (that look new, as I buy from old people) and liability for me....


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Old 01-01-2016, 12:59 PM   #24
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I would hate to add up all the money and its opportunity cost lost to insurance over the past 35 years. When I was young and dumb and low income, I always had a nice car and nice insurance premium to go with it. Now, that I am older, I could care less about a new car. I cant stand giving money away on sales tax, property tax, and insurance. Its older cars (that look new, as I buy from old people) and liability for me...
No argument, but at least with sales & property taxes you are getting something in return. With home, renters & auto insurance, we've gotten absolutely nothing in return on our home or boats, and one claim on auto in 39 years!
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Old 01-01-2016, 01:34 PM   #25
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No argument, but at least with sales & property taxes you are getting something in return. With insurance, we've gotten absolutely nothing in return on our home or boats, and one claim on auto in 39 years!
Talk about a ripoff, I've been paying for life insurance for over thirty years and I haven't even died yet!
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Old 01-01-2016, 03:12 PM   #26
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Talk about a ripoff, I've been paying for life insurance for over thirty years and I haven't even died yet!
Well, if you like that can be arranged....
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