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Old 08-24-2017, 03:50 PM   #21
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Strange, when we moved into our smaller house 3 years ago, we quoted several companies (USAA, Liberty Mutual, Amica, one other) and Amica was the lowest (same coverages). Last year, we have a roof hail damage claim and Amica handles it and the roof is replaced. We have not seen any increase in premium due to that $13,000 claim.

It's a mixed bag out there and every insurance company is playing the same games it seems.

On a side note, and being a combat Veteran, I have never been able to get a quote from USAA where they were the most competitive. Go figure!
At least Tx provides that a weather related claim can not be charged against an individual policy, but rather all folks in an area. I guess the idea is that you can't control the weather. However in Tx at least you can get a discount with a hail resistant roof.
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Old 08-24-2017, 04:21 PM   #22
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being a combat Veteran, I have never been able to get a quote from USAA where they were the most competitive.
OTOH, I've never gotten a quote from anyone else who could beat USAA's price. I'm a combat vet also, but I think that's completely irrelevant. It's 100% related to where you live, IMHO.
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Old 08-24-2017, 04:22 PM   #23
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It's 100% related to where you live, IMHO.
I think your claims history also plays a big role.
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Old 08-24-2017, 07:34 PM   #24
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Seems to be hitting all insurers. This article posits some reasons: https://www.forbes.com/sites/ccasazz...till-going-up/

I also agree that the complexity of the cars has to be driving this too. Installing a complex headlight and sensor assembly during the car manufacturing process is one thing. Repairing it is another. Airbags deploy, sensors get toasted, etc. It is a far cry from the days of a "panel beater" straightening out a few things. Even for a simple accident.

And then there are the distractions. My goodness, the noses in the phones on my morning commute are scary. There have to be some pretty bad collisions due to inattention.
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Old 08-24-2017, 08:10 PM   #25
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So, if the reason USAA is having to pay out more is the higher cost to repair cars, what is the logical response?
1) Raise premiums across the board, or at least for the car models that have proven unexpectedly expensive to repair. Book-wide problem, book-wide solution.
2) Give many members cause to believe they might not be renewed, but don't tell them why.

Seems they are doing 1), I don't know why they are also doing 2).
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Old 08-24-2017, 08:42 PM   #26
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There have to be some pretty bad collisions due to inattention.
You mean like this one?

Truck driver indicted in church bus crash that killed 13

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A National Transportation Safety Board report says Young told investigators he was checking his phone for a text when the crash happened...
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Old 08-24-2017, 08:55 PM   #27
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I think a lot of USAA policyholders are overreacting to the notice they are mailing out. I've never worked for them but worked in insurance for thirty five years and sort of understand the beasts. There notice is removing the guaranty that they will renew your policy but is not a threat to cancel everyone. They would go out of business quickly if they didn't renew their policies. They can't cancel your insurance , but can non-renew your policy if you no longer meet their underwriting standards, just like all other insurance companies currently do. I'm sure that this is a shock to long-time USAA members as it is a change, but it won't affect those with a good claims and driving history.

What is most likely happening is their personal auto underwriting results have been unprofitable and they are trying to fix the problem by giving their underwriters the ability to move bad drivers to a different program with much higher rates that reflect their poor driving or claims records. They still want to keep their good customers and will be able to keep rates competitive if they get the bad drivers out of the preferred program. The reason that they refer to customer's "areas" is probably due to some states no letting them make the change to the policy without state approval.

Their online explanation they are giving customers is just corporate fluff and those reps are just trying to calm down the masses without being too specific about the program change. They are minions with no authority to do anything but fend off the pitchforks and torches. I doubt that complaints will change anything because they are trying to get the line of business (personal auto) back to profitability.

I've written about this before, but insurance rates have to go up to keep up with loss costs, operating costs and lower investment returns. The insurance company that does not raise premiums regularly gets behind the curve and later on will have to raise premiums a huge amount to catch up. That causes a mass exodus that takes years to recover from. Personal lines auto insurance has been a money loser for a few years for most insurance companies and USAA is getting more like all the rest of the industry. It is no longer the exclusive club of military officers and retirees and their families. They wouldn't insure me when I was an enlisted grunt many moons ago but will take me now if I want to switch.

USAA is still a good company but they are changing in an effort to fix an unprofitable line of their business that is very important to them and their members. If I was a USAA member, I would want them to be profitable so that they can continue to offer competitive rates to their members for a long time to come.
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Old 08-26-2017, 11:41 AM   #28
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I think a lot of USAA policyholders are overreacting to the notice they are mailing out.
. . . .
What is most likely happening is their personal auto underwriting results have been unprofitable and they are trying to fix the problem by giving their underwriters the ability to move bad drivers to a different program with much higher rates that reflect their poor driving or claims records. They still want to keep their good customers and will be able to keep rates competitive if they get the bad drivers out of the preferred program.
To the degree that the USAA clientele is still career military officers and NCOs, the company should realize that this group is particularly accustomed to and appreciative of straight talk. If there's a problem/challenge, then making the situation known in unvarnished tems and showing the steps being taken to address it, to include sacrifices by the membership, is the way to handle this. It is not what is happening.
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Old 08-26-2017, 12:25 PM   #29
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I suspect the batch of claims forthcoming from the gulf coast will do little to help profitability. Way to go Texas....
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Old 08-26-2017, 12:32 PM   #30
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Way to go Texas....
I'd like to point out that unlike other states, Texas has little say in our choice of weather.
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Old 08-26-2017, 01:15 PM   #31
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I'd like to point out that unlike other states, Texas has little say in our choice of weather.
And yet another good reason not to move there, beyond scorpions and snakes. I'm stickin' with a state that controls their own weather.
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Old 08-26-2017, 01:25 PM   #32
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I'm stickin' with a state that controls their own weather.
We custom order ours from a small shop in NYC, where old world craftsmen use the finest organic materials to deliver something that is not so much a product as an holistic experience. If it doesn't suit our palate, we simply pass it along to Massachusetts and Rhode Island, and then order something else.
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Old 08-26-2017, 03:25 PM   #33
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I'd like to point out that unlike other states, Texas has little say in our choice of weather.
Well play it safe REW, I see it is about to be your turn.
There's no reason you can't put off calling the movers til Monday..
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Old 08-26-2017, 03:29 PM   #34
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Well play it safe REW, I see it is about to be your turn.
Not much going on here - at least not yet. My rain gauge totals a whopping two tenths of an inch.
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Old 08-26-2017, 07:43 PM   #35
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Five inches of rain and some wind about an hour and a half east of REWahoo, no flooding in the Hill Country yet to speak of.

I think that USAA should leave the renewal guaranty on any active duty personnel for a couple of reasons. One is that they can be deployed overseas and unable to handle things like insurance. The other is that a lot of standard insurance companies don't like to write insurance on active duty military due to the deployments. That is probably because of possible unoccupied homes, cars left unprotected or loaned out, etc. Active duty personnel need and deserve that safety net.

USAA may not be impacted too much by the hurricane since coastal property damage is mostly wind and flood and wind damage is excluded in what we call first tier counties in Texas and flood is not covered at all. They will have some submerged autos to pay for and some wind damage inland.
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Old 08-26-2017, 08:04 PM   #36
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I just received my auto policy renewal today. The premium jumped 14% "due to a rate change in your state or because of your policy's individual risk characteristic". Buried in the policy packet, I also found out that "the Guaranteed Renewal Endorsement is no longer offered in your location".

No accident, tickets, or claims since 2002 and no change in "risk characteristic" since last renewal.
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Old 08-27-2017, 08:27 AM   #37
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Earlier this year I listened to numerous phone calls made and received by someone in the office. She and husband owned a home, insured by USAA, in another state. Sometime after a buyer signed agreement, the cold weather caused a broken water pipe in the kitchen wall. Heat was on, but something in the HVAC system failed, the extreme winter set in, and pipe burst.

Initially, USAA was not going to cover this. There were many phone calls about it. Eventually she ended up with $100K of repairs or more. This included a new kitchen, floors throughout, etc. She spoke of family members who were getting paid to do some of the repairs. Not sure if they sold the home.

My opinion is that they were at fault for not having someone regularly check on an empty home.
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Old 08-27-2017, 08:46 AM   #38
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Earlier this year I listened to numerous phone calls made and received by someone in the office. She and husband owned a home, insured by USAA, in another state. Sometime after a buyer signed agreement, the cold weather caused a broken water pipe in the kitchen wall. Heat was on, but something in the HVAC system failed, the extreme winter set in, and pipe burst.

Initially, USAA was not going to cover this. There were many phone calls about it. Eventually she ended up with $100K of repairs or more. This included a new kitchen, floors throughout, etc. She spoke of family members who were getting paid to do some of the repairs. Not sure if they sold the home.

My opinion is that they were at fault for not having someone regularly check on an empty home.
Unless it was hot water heat, I do wonder why they did not turn the water off in the house if gone. I always do, in particular when I lived in Houston in the winter when one christmas a lot of folks went out of town and the pipes in the attic froze to the point that the water pressure went to zero. It was boom time for plumbers for a while.
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Old 08-27-2017, 09:20 AM   #39
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Unless it was hot water heat, I do wonder why they did not turn the water off in the house if gone.
+1

Whenever we are leaving overnight we turn off the water (a 90 degree twist of a lever behind the water softener) and breakers to the electric water heater. No concerns here about freezing, but I've had concerns about freaky water damage since waking up one morning to find the tank on one of our toilets cracked and leaking.
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Old 08-27-2017, 10:55 AM   #40
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I never turn off the water when gone, even though it mght get down to the upper 30s for 1-2 nights in January.
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