auto insurance rates jumped 20%

[NorthernHawkeye]

Car insurance premiums around the U.S. are soaring. Here's why.

Car insurance premiums around the U.S. are soaring. Here's why.

American drivers are spending less to fill up than a year ago, but paying a whole lot more to insure their vehicles.

www.cbsnews.com

 

[McLovin32]

Sucks. Mine has gone up about $30/6 months for my truck. I can deal w/ an extra $60 a year.

 

[auntie_fah]

Mine jumped over $150 for 6 months when it renewed in november.

They told me the cost of doing business in my area has gone up. I told them the cost of doing business with me has not.

Im sure they will jack it up and i will shop around for a new insurance provider in a couple months. I have switched insurance companies 3 times in the last 3 years, and have gotten a better price every time i switched.

 

[srams21]

Mine jumped over $150 for 6 months when it renewed in november.

They told me the cost of doing business in my area has gone up. I told them the cost of doing business with me has not.

Im sure they will jack it up and i will shop around for a new insurance provider in a couple months. I have switched insurance companies 3 times in the last 3 years, and have gotten a better price every time i switched.

Yep. This is pretty much what you have to do. We shop rates yearly and it saves us quite a bit of money most times. Annoying but the more people do that, the less they can just randomly jack up rates. They jack them up because most people will bitch but never do anything about it.

 

[IAFB2021Champs]

Mine jumped over $150 for 6 months when it renewed in november.

They told me the cost of doing business in my area has gone up. I told them the cost of doing business with me has not.

Im sure they will jack it up and i will shop around for a new insurance provider in a couple months. I have switched insurance companies 3 times in the last 3 years, and have gotten a better price every time i switched.

Which is so annoying and stupid. Wouldn’t you rather keep the customers that you do have happy instead of losing them and then giving a better deal to a new customer.
I’ve never understood this.

 

[auntie_fah]

Which is so annoying and stupid. Wouldn’t you rather keep the customers that you do have happy instead of losing them and then giving a better deal to a new customer.
I’ve never understood this.

Same thing with internet service providers.

 

[goldmom]

Mine doubled in the last 18 months. Clean record and retired.
Complete BS so that PI attorneys can keep on suing insurance companies.

 

[DropitlikeitsHawk]

Yep. This is pretty much what you have to do. We shop rates yearly and it saves us quite a bit of money most times. Annoying but the more people do that, the less they can just randomly jack up rates. They jack them up because most people will bitch but never do anything about it.

This is the exact opposite of how it works.

 

[The-Dude-Abides]

Mine doubled in the last 18 months. Clean record and retired.
Complete BS so that insurance companies can reward their shareholders.

FIFY

 

[Huey Grey]

It kind of makes sense. People are driving huge and expensive trucks and SUVs. Those aren't cheap to fix. America is kind of getting what we asked for here.

 

[dekhawk]

Yep. This is pretty much what you have to do. We shop rates yearly and it saves us quite a bit of money most times. Annoying but the more people do that, the less they can just randomly jack up rates. They jack them up because most people will bitch but never do anything about it.

This

 

[MitchLL]

Whether true or not, my independent agent said many insurers are not accepting new customers.

Thanks California and Florida!

 

[jasonrann]

Mine didn't.

 

[Jimmy McGill]

Pretty much all business is still acting like inflation is still a thing.

Greed

 

[sabula]

My combined auto and home insurance went up 33% for 2024. So I called my agent to ask why, and he gave me some stuttering song and dance about the cost of losses down south with all the tornadoes and floods and all that stuff. I told him but I've never had a claim and I live primarily in iowa. He said didn't matter they were a national company. So I told him well you're a national company that doesn't have my business anymore and I went elsewhere. And basically paid the same rates I have now. With another national company.

 

[kwik44]

Ours did 40/mo, so took the higher deductible to drop it 100/mo.

Then parked mine & driving farm truck everywhere. Crazy making cuts like that, but it's where things are.

 

[mnole03]

Mine doubled in the last 18 months. Clean record and retired.
Complete BS so that PI attorneys can keep on suing insurance companies.

Florida just started to allow double dipping in personal injury lawsuits. You can now recover for the same claim from multiple parties.

It’s batshit crazy.

 

[ihhawk]

In South Florida, we have a huge issue with uninsured drivers. It’s driving up the premiums

 

[onlyTheObvious]

We had what I considered not scratches on our newer car that my wife wanted fixed.

I figured $200 or so to buff it out.

It was $800+ and they said it needed repainted where scratches were.

Frankly, the cost of body work is so damn expensive I can’t believe car insurance doesn’t cost more.

A headlight assembly can easily cost a couple grand.

 

[mnole03]

In South Florida, we have a huge issue with uninsured drivers. It’s driving up the premiums

South Florida has a huge issue with juries awarding hundreds of thousands of dollars for any personal injury claim.

 

[Phenomenally Frantastic]

This is my Butler’s concern.

 

[goldmom]

South Florida has a huge issue with juries awarding hundreds of thousands of dollars for any personal injury claim.

Morgan and Morgan is on the job!

 

[abby97]

Pretty much all business is still acting like inflation is still a thing.

Greed

Maybe because it is, went up a lot in January

 

[Jimmy McGill]

Maybe because it is, went up a lot in January

3.1% percent? that is historically low. keep it up buttercup

 

[Jimmy McGill]

Average inflation rate has been near 4% for the past 50 years

Don't let facts get in your way....

 

[Jimmy McGill]

It's tiring owning @abby97

 

[ISUBryceC]

Whether true or not, my independent agent said many insurers are not accepting new customers.

Thanks California and Florida!

I have a friend who is very high up in a major insurance company that is losing tons of money just like all of the major providers.

PI stuff he’s never brought up to me about why rates are up. It’s the major losses due to new components in vehicles and the fires driving everything for his company.

He’s an actuary too, so it’s all a numbers thing for him.

 

[Jimmy McGill]

I have a friend who is very high up in a major insurance company that is losing tons of money just like all of the major providers.

PI stuff he’s never brought up to me about why rates are up. It’s the major losses due to new components in vehicles and the fires driving everything for his company.

He’s an actuary too, so it’s all a numbers thing for him.

They should shut their doors then. Wave the white flag.

 

[ISUBryceC]

They should shut their doors then. Wave the white flag.

That’s an extremely weird response. Why?

Just passing on what I’ve heard from somebody who would actually know.

 

[Jimmy McGill]

That’s an extremely weird response. Why?

Just passing on what I’ve heard from somebody who would actually know.

I'm just saying that if they can't account for potential losses, perhaps they are not doing things right.

 

[mnole03]

I have a friend who is very high up in a major insurance company that is losing tons of money just like all of the major providers.

PI stuff he’s never brought up to me about why rates are up. It’s the major losses due to new components in vehicles and the fires driving everything for his company.

He’s an actuary too, so it’s all a numbers thing for him.

I hadn’t even thought of the fires. The Marshall fire here destroyed almost 1500 cars, including a major exotic car collection. Cars that are in a fire are often total losses. That’s got to be murder on their bottom line.

 

[ISUBryceC]

I'm just saying that if they can't account for potential losses, perhaps they are not doing things right.

State Farm lost a billion dollars last year. He doesn’t work for State Farm just FYI.

It’s an industry wide problem and as an industry they are struggling to adapt to the new normal. They are paying out way more than they are taking in via premiums. Ergo, premiums must go up. I don’t get the greed accusations.

 

[Bank of Hawk]

Fire Fran 🔥 🔥 🔥

 

[The-Dude-Abides]

Florida just started to allow double dipping in personal injury lawsuits. You can now recover for the same claim from multiple parties.

It’s batshit crazy.

Genuinely curious about this. Was it new legislation, a court decision, or something else?

 

[Iafootballfan]

Pretty much all business is still acting like inflation is still a thing.

Greed

Can you point me to the filings that show of any major insurance company with higher profits last year?

 

[mnole03]

Genuinely curious about this. Was it new legislation, a court decision, or something else?

Just for clarification, the bad faith “penalty” is tied to the damages incurred in the accident, so there’s clearly a windfall. Bad faith claims on uninsured motorists policies are far too easy to win and they’re not reviewable on appeal.

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supremecourt.flcourts.gov

 

[The-Dude-Abides]

Just for clarification, the bad faith “penalty” is tied to the damages incurred in the accident, so there’s clearly a windfall. Bad faith claims on uninsured motorists policies are far too easy to win and they’re not reviewable on appeal.

Loading…

supremecourt.flcourts.gov

Thanks for sharing this. Having read the case and statutes cited, I don't think it quite squares with your point.

Bad faith is a separate tort action recognized by most states for indefensible claims action/inaction by insurers. It is a distinct cause of action from the underlying tort claim, and they are very hard to win. I.e., the insurer has to eff up so egregiously that a jury would find a basis for separate damages beyond the underlying cause and find damages strictly due to the bad faith conduct. Two torts, two sets of damages. Yes in practice there is some correlation between damages in the underlying tort and the bad faith action, but it can easily take a different path. When the bad faith causes a much worse medical outcome, for example. Adjust claims within a basic framework of reasonableness and no bad faith claim would ever make it past summary judgment.

These kind of judgments are also entirely appealable. The court's opinion here denied review because the appellant failed to preserve the error below, a basic preservation error. That doesn't mean the issue cannot be appealed when done properly.

 

[mnole03]

Thanks for sharing this. Having read the case and statutes cited, I don't think it quite squares with your point.

Bad faith is a separate tort action recognized by most states for indefensible claims action/inaction by insurers. It is a distinct cause of action from the underlying tort claim, and they are very hard to win. I.e., the insurer has to eff up so egregiously that a jury would find a basis for separate damages beyond the underlying cause and find damages strictly due to the bad faith conduct. Two torts, two sets of damages. Yes in practice there is some correlation between damages in the underlying tort and the bad faith action, but it can easily take a different path. When the bad faith causes a much worse medical outcome, for example. Adjust claims within a basic framework of reasonableness and no bad faith claim would ever make it past summary judgment.

These kind of judgments are also entirely appealable. The court's opinion here denied review because the appellant failed to preserve the error below, a basic preservation error. That doesn't mean the issue cannot be appealed when done properly.

In theory you’re absolutely right about how bad faith should work. In Florida practice what happens is that it’s used to avoid policy limits and recover in full. That’s why there was a $4 million settlement on a $10k policy limit.

Florida’s First-Party Uninsured Motorist Bad-Faith Doctrine Needs a Pit Stop

When an insurance company in Florida fails to handle a first-party insurance claim in accordance with its duty of good faith, F.S. §624.155 (civil remedy statute) provides the claimant a statutory private right of action to file suit against the offending insurer. This circumstance arises with...

www.floridabar.org

 

[Jimmy McGill]

Can you point me to the filings that show of any major insurance company with higher profits last year?

Insurance executives rake in millions as premiums continue to rise – CFA​

https://www.insurancebusinessmag.co...as-premiums-continue-to-rise--cfa-462413.aspx

 

[srams21]

Insurance executives rake in millions as premiums continue to rise – CFA​

https://www.insurancebusinessmag.co...as-premiums-continue-to-rise--cfa-462413.aspx

Greedflation sir