Hartford Insurance Rate Increase

[karvel]

We switched to Hartford 4 yrs ago because their rates were a lot lower then what we were paying for the same coverage at the time and AARP endorsed them. Each year since then they keep increasing thier rates. This year they increased our rate 18% even though they reported record earnings for the quarter of $400 plus million because of fewer claims and lower costs. We have never had a claim with them. How is this right? I feel like I am dealing with a bait and switch company.
Any thoughts or other companies we should consider? Thanks for your input.

[pb4uski]

Quote:

Originally Posted by karvel ....even though they reported record earnings for the quarter of $400 plus million ....

It drives me nuts when people focus on headline numbers and don't put things in perspective. Politicians do this all the time - "XYZ Company made $x gazillion last year/quarter" -so they are swine. They do it with oil companies, insurance companies and all those big bad capitalist companies.

How much have the shareholders have invested in order to earn this $400 million for the third quarter? In HIG's case it is about $22 billion. Their return on equity for the last twelve months is less than 2.5% so yes, they are totally ripping you off.

[MichaelB]

Quote:

Originally Posted by karvel Any thoughts or other companies we should consider? Thanks for your input.

If profitable insurance companies bother you why not look for one that is losing money?

Quote:

Originally Posted by pb4uski It drives me nuts when people focus on headline numbers and don't put things in perspective.

If that drives you nuts you use be totally loco by now...

[pb4uski]

Quote:

Originally Posted by MichaelB ...If that drives you nuts you use be totally loco by now...

Guilty as charged.

[rbmrtn]

Quote:

Originally Posted by karvel I feel like I am dealing with a bait and switch company.

I think that is fairly standard operating procedure for insurance companies.

You didn't mention what type of insurance it was.

[Bikerdude]

Insurance companies continually change their rates for various reasons. I usually compare rates every year or two to be sure I am getting the best deal. However, IMO, The Hartford has a good record of paying claims.

[mickeyd]

Quote:

they reported record earnings for the quarter of $400 plus million because of fewer claims and lower costs.

Surprise! Hartford is in business to make money for their shareholders and AARP is in cahoots with them.

If you have a military connection, try USAA.

[RAE]

Quote:

Originally Posted by rbmrtn I think that is fairly standard operating procedure for insurance companies.

Yes, in my experience this is absolutely standard operating procedure for most insurance companies (a lot of people probably don't pay too much attention, and just pay the bill). I learned a while back that you have to watch your insurance bill closely from year to year, and when they start jacking the rates up too much, it is time to look for new insurance. It only took two years for the last insurance company I dealt with to do this (I believe they wanted to raise the rate about 20%, for home and auto). So, I said goodbye to them. My current home and auto insurance is through AAA, although I have only had it for about a year. So far, so good, but I will be watching the rates closely with them too.

[veremchuka]

My rates with whatever company rise each year and I never have made a claim for anything ever. Most companies will give you a low quote for the 1st year and then get rate increases and there you go, the longer you stay with them the more you pay. I hear your point but it just seems to be how this works. I prefer Amica, I opted for the dividend policy.