Car Insurance

[Rexmons]

Car insurance is like paying the mafia protection money, you know you're supposed to do it or you're going to get in trouble. In NJ we pay the highest rates in the country for insurance and have practically nothing to show for it. The saddest part is, you're paying this money so in case you get into an accident, you're insured right, but if you do actually get into an accident, your fault or not, your premium goes up and stays up. For a regular fender bender it's like paying out of your own pocket! I just recently signed up with 21st Century Insurance and after signing up, I received a letter stating they were now going to check my credit score and my premium will possibly change based on my credit score! What does one thing have to do with another! A coworker told me his old insurance company was actually overcharging him $500/year because the 18yr old kid that lived in the apartment above his was high risk. They didn't even call him to ask if they lived together they just fucking raised that shit. Wouldn't it be nice if car insurance was more like health insurance in that they cover the small stuff too, like tune-ups, new tires, brakes, oil changes? If you ask me New Jersey's auto insurance is its biggest example of corruption gone wild.

[Clodfobble]

Originally Posted by Rexmons

but if you do actually get into an accident, your fault or not, your premium goes up and stays up.

I've had so many people say this, but it's never happened to me. I've been in one fenderbender that was my fault, and my husband was in a more serious wreck with probably six thousand dollars in total damage, and our rates didn't go up either time. We were with State Farm. Maybe it's just because we were still "ahead" in the books because we'd been paying premiums with the same company for years and years, or maybe it's a state regulation thing, I really don't know.

We recently switched all our insurance to Travelers (through an independent agent), however, because their homeowners rates were so much better. I guess we'll see how good they really are the first time we have a claim...

[LabRat]

Originally Posted by Rexmons

after signing up, I received a letter stating they were now going to check my credit score and my premium will possibly change based on my credit score! What does one thing have to do with another!

My husband owns his own insurance agency. For his company, they check your credit score and use that in addition to other factors such as primary drivers age, total number of people driving the vehicle in question, typical number of miles driven per year for said vehicle, type of vehicle, does the car owner have other policies with their company, etc. to determine the final rate for that vehicle.

Your rate might go down if you have a good credit score. Why? Because statistically, you are less likely to need money (be in debt to your eyeballs) and therefore less likely to commit insurance fraud (or submit a claim to use the $$ for other things).

Insurance is not about ripping off the consumer, dude. It's about statistics.

On a regular basis the Labrat Family checks our credit score (fortunately hubby can do this for free since he's our insurance man ) and everytime it increases, we get a cheaper rate on our multiple policies.

YOU CAN DO THIS TOO!!! Assuming other companies work this way, (I have no idea) go to your insurance person, and tell them you want a rate adjustment if your credit score has improved. Or just tell them you need a rate check. Just make sure your credit hasn't hit the shitter...

[smurfalicious]

Insurance is the largest scam in this country. Health, auto, home... it's all to take money from the little people, put money in the pockets of high ranking CEOs, and when tragedy occurs (coughcoughKatrinacough), there's denials of claims and "no" money to take care of the insureds. And then they raise your rates, if they don't drop you altogether.

*sigh* And I work for one of these god forsaken insurance companies.

In three years I was rear-ended, hit by someone going the wrong way down a one-way street (total loss), and hit by an uninsured stop sign runner (total loss). My rates never went up. Rates *shouldn't* go up unless you were the one at fault.

Go with a reputable company. The fly-by-nights are horrid and go bankrupt quickly. I'm with Auto Owners/Southern Owners and I love them. Travelers is good, so is Ohio Casualty. I personally don't care for State Farm or Allstate, but they're alright. Progressive is a joke if you want to get your claim paid.


As far as what to do about rates in your state: write to your insurance commissioner. Weekly. Remind others who feel the same way to write to the commissioner as well.

[SteveDallas]

Originally Posted by LabRat

Insurance is not about ripping off the consumer, dude. It's about statistics.

Maybe that's true for you upstanding salt-of-the-earth types in our great country's heartland.... but Rex is talking about New Joisey here!

[LabRat]

A business is an entity that exists to make people that work there (or those who invested in it) money.

Insurance companies are businesses who take the risk that the little and big people that they insure will, in the long run, claim from them less than they have paid into the system. If there weren't people who paid in more than they took out, where would the money come from to pay YOUR claim?

A good company will use some of that profit to generate even more profits, through investments outside of the insurance industry to cover claims in the event of a massive claims spike, such as from say, a massive streak of thunderstorms that cover the midwest causing thousands of water, wind and hail damage to autos homes and businesses. Even a 'good' company will likely have to raise it's rates to cover such losses.

When a massive number of huge claims are made, a company will likely not have enough $$ to pay those claims.

How come I never hear anyone bitching about casinos? They just take your money, and you don't even get a card and free calendar at Christmas.

[smurfalicious]

Originally Posted by LabRat

How come I never hear anyone bitching about casinos? They just take your money, and you don't even get a card and free calendar at Christmas.

cuz they gots booze and hookers year round

[xoxoxoBruce]

Originally Posted by LabRat

How come I never hear anyone bitching about casinos? They just take your money, and you don't even get a card and free calendar at Christmas.

Because the government doesn't require me to go to the casino.

[Weird Harold]

Originally Posted by Rexmons

Car insurance is like paying the mafia protection money, you know you're supposed to do it or you're going to get in trouble. In NJ we pay the highest rates in the country for insurance and have practically nothing to show for it. The saddest part is, you're paying this money so in case you get into an accident, you're insured right, but if you do actually get into an accident, your fault or not, your premium goes up and stays up. For a regular fender bender it's like paying out of your own pocket! I just recently signed up with 21st Century Insurance and after signing up, I received a letter stating they were now going to check my credit score and my premium will possibly change based on my credit score! What does one thing have to do with another! A coworker told me his old insurance company was actually overcharging him $500/year because the 18yr old kid that lived in the apartment above his was high risk. They didn't even call him to ask if they lived together they just fucking raised that shit. Wouldn't it be nice if car insurance was more like health insurance in that they cover the small stuff too, like tune-ups, new tires, brakes, oil changes? If you ask me New Jersey's auto insurance is its biggest example of corruption gone wild.

I'm self employed. Our kids are now on All Kids Covered. Illinois's version of national health insurance. You pay based on what you make, you can make up to $200,00, it's not just for welfare recipients. Unfortunately my wife and I are over 18, so the policy we can afford has a $5,000deductable per person per year. We pay for basically everything, it's only for if someone gets cancer, or something really big.

In addition to car insurance, house insurance, and health insurance, I have general liability, and workman's comp insurance. I work by myself, I have no employees, which is what workman's comp is for, it doesn't cover the owner. Why do I have workman's comp? Illinois law says that a sole proprietor doesn't have to have it. Because one of the carpet stores I work for insists that I have a workman's comp policy. So I get to basically flush $1,000 down the toilet each year, for insurance that covers no one.

[Clodfobble]

Originally Posted by Weird Harold

Because one of the carpet stores I work for insists that I have a workman's comp policy. So I get to basically flush $1,000 down the toilet each year, for insurance that covers no one.

I assume you do make more than $1000 a year from that client though, right?

[LabRat]

Originally Posted by xoxoxoBruce

Because the government doesn't require me to go to the casino.

Theoretically, you only have to have certain insurance if you drive a car (there is public transportation/taxies/bicycles etc.) or own a home (you can rent, renters ins is not required) etc. I'm just saying...

Please don't get me wrong, ins comps, like big oil have us by the balls, because we 'need' their product. We don't get a discount just cuz we sell the stuff. In fact, before my husband owned his agency (and is now considered self employed and the gubmint is screwing us in ways we never knew were possible) he was required to have his companies health insurance. IT STUNK and was more than mine. His deductables and co-pays were double mine, plus we paid more for his prescriptions (and the man was sick all the time with pneumonia, at one point hospitalized). The minute we could, we got him onto my plan.

All I'm saying is that insurance is a business, like any other where those who have a chance to make money would like to maximize their take home. Unfortunately, there are unscrupulous and downright vulturistic assholes in any industry who will prey on the ignorant.

[yesman065]

My insurance is going down this year - $400 less. Thats huge to me. I've been with Geico for the four years and they've been great.

[Razzmatazz13]

Ugh..I'm being taken off of my parent's car insurance soon...I'm sure it'll cost me about $70bajillion a year just to get to work and back now.

[yesman065]

Originally Posted by Razzmatazz13

Ugh..I'm being taken off of my parent's car insurance soon...I'm sure it'll cost me about $70bajillion a year just to get to work and back now.

To add my 17 yr old son will cost another $520 for 6 months. Thats a lot less than I thought it was gonna be. My 18 yr old daughter has her own policy and it runs about $700 per 6 months. Thats not too bad.

[Razzmatazz13]

Mine was $300 every 6 on my parents bill...I have no idea what it's going to be on the new one...or when they're going to have to drop me (has to do with my taking a year off of college so we still need to figure out when the cutoff is.)