Suggestion from your friendly neighborhood insurance guy
#3131086
03/21/23 12:18 PM
03/21/23 12:18 PM
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Joined: Dec 2007
Posts: 19,918 Puttin' on the foil in Charles...
not_a_charger
OP
Mr. Big Shot Moparts Moderator
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OP
Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 19,918
Puttin' on the foil in Charles...
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This is a great year to shop for home and auto insurance, especially if you have one of the major carriers. 9 of the top 10 carriers lost money last year, and some of them lost a LOT of money. As a result, they are raising rates. Several smaller carriers and regional carriers did pretty well last year, as did the #2 auto insurer. It is worth shopping around, especially if you are getting whacked with an increase despite not having any claims, tickets, etc.
My home insurance went up 35%, and my auto went up 13%. Combined, I was going to be paying $3,585. I switched companies and will now be paying $2,194 combined, a 39% difference. This is for exactly the same amount of liability coverage, same value on my house, replacement cost coverage, same comp/collision deductibles on my cars, etc. Zero coverage changes at all.
The nine top 10 carriers that lost money last year are not going to be in a position to lower or stabilize rates for a while. Most of them aren't very good at underwriting in the first place. The exception here is Geico. Like Progressive, Geico is good at underwriting (not quite as good as Progressive, but good). Geico's being hurt by an increase in claim handling costs. Theirs have spiked significantly. This is not how much they pay out on a claim, but rather the expense involved in handling the claim. They are usually the best in the industry and controlling this cost, but they have cratered in that regard.
It's worth looking around. Nothing ventured, nothing gained.
Earning every penny of that moderator paycheck.
DBAP
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: not_a_charger]
#3131090
03/21/23 12:25 PM
03/21/23 12:25 PM
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Joined: Apr 2003
Posts: 12,234 Looking for a way out of Middl...
IMGTX
I Live Here
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I Live Here
Joined: Apr 2003
Posts: 12,234
Looking for a way out of Middl...
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I have Geico for the cars and have not had a problem but the wife pays the bill. My mortgage company sent me a notice my homeowners (paid from escrow) went up and offered another company. I thought it was a sales pitch so they could get commission but now I am worried. Thanks for the information and looking out for others with it.
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: A12]
#3131101
03/21/23 12:47 PM
03/21/23 12:47 PM
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Joined: Dec 2007
Posts: 19,918 Puttin' on the foil in Charles...
not_a_charger
OP
Mr. Big Shot Moparts Moderator
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OP
Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 19,918
Puttin' on the foil in Charles...
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Any chance of finding the list of those potentially raising their rates? 9 of the top 10 carriers. Progressive is the only one not raising overall rates. Several smaller/regional carriers will be raising rates as well, but some of them that underwrite more conservatively and invest more conservatively did OK, and are now in a position to either hold rates steady or decrease them. If you look up the financial results for any carrier, that will give you a good idea of who is raising rates. The key number is Combined Ratio (CR). This represents how much they made/lost for every dollar of premium they earned. - Written premium = how much they were owed/how much they billed. - Earned premium = how much they collected. - Combined Ratio = total claim payouts + total claim handling expenses/earned premium A well run company that underwrites accurately typically wants a CR of .96, meaning they make $0.04 on every dollar of earned premium. Lots of carriers were at 1.05, 1.08, 1.1x, etc. 2nd poor year in a row for some of them, which leaves no alternative but to raise rates.
Earning every penny of that moderator paycheck.
DBAP
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: not_a_charger]
#3131155
03/21/23 03:07 PM
03/21/23 03:07 PM
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Joined: Jan 2003
Posts: 75,020 U.S.S.A.
JohnRR
I Win
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I Win
Joined: Jan 2003
Posts: 75,020
U.S.S.A.
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This is a great year to shop for home and auto insurance, especially if you have one of the major carriers. 9 of the top 10 carriers lost money last year, and some of them lost a LOT of money. As a result, they are raising rates. Several smaller carriers and regional carriers did pretty well last year, as did the #2 auto insurer. It is worth shopping around, especially if you are getting whacked with an increase despite not having any claims, tickets, etc.
My home insurance went up 35%, and my auto went up 13%. Combined, I was going to be paying $3,585. I switched companies and will now be paying $2,194 combined, a 39% difference. This is for exactly the same amount of liability coverage, same value on my house, replacement cost coverage, same comp/collision deductibles on my cars, etc. Zero coverage changes at all.
The nine top 10 carriers that lost money last year are not going to be in a position to lower or stabilize rates for a while. Most of them aren't very good at underwriting in the first place. The exception here is Geico. Like Progressive, Geico is good at underwriting (not quite as good as Progressive, but good). Geico's being hurt by an increase in claim handling costs. Theirs have spiked significantly. This is not how much they pay out on a claim, but rather the expense involved in handling the claim. They are usually the best in the industry and controlling this cost, but they have cratered in that regard.
It's worth looking around. Nothing ventured, nothing gained. Thanks for the heads up , I'll have to look at what just came in the mail .
running up my post count some more .
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: not_a_charger]
#3131184
03/21/23 05:45 PM
03/21/23 05:45 PM
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Joined: May 2007
Posts: 701 Northern California
lilcuda
super stock
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super stock
Joined: May 2007
Posts: 701
Northern California
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I never knew about the combined ratio. I just looked up Allstate as I have had them for decades. Their CR was 112.6 for 2022! I just got my homeowner's policy renewal in the mail yesterday. I will look at it tonight. Thanks for the heads up and the info.
'67 is an abbreviation of 1967 67' is an abbreviation of 67 feet They are not interchangeable.
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: topside]
#3131189
03/21/23 06:23 PM
03/21/23 06:23 PM
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Joined: Apr 2005
Posts: 4,922 new berlin wisconsin
Mr T2U
master
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master
Joined: Apr 2005
Posts: 4,922
new berlin wisconsin
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A buddy of mine who just retired from running a collision repair shop LOATHED GEICO. Every time I visited, I heard more stories of substandard parts they'd mandated for repairs, or where they'd significantly cut repair times and procedures. Just like the crappy auto parts nowadays, the profits & savings come out of the Customer. GEICO isn't the only outfit short-changing repair quality - I had battles with several a few years back - so one has to look at the actual service provided when needed. I remember well that when I worked for insurers how their accounting was essentially a shell game. i work in a VW certified body shop. i wouldn't have geico insurance on my car if it was free. their claims process is the absolute worst in the industry. their estimate are pretty bad also. you have to supplement every one. to supplement they require a personal inspection. it usually takes about 10 business days to get someone to show up to inspect. i think the last geico job i did their photo estimate was $1500. we supplemented $25,000 on a 2022 absolute top of the line VW Atlas, $60K+ suv, with 200 miles on it. it was T boned in the drivers side. yes it was totaled. they tried to deny payment for the rental car over 3 days. it took 15 working days to get them to show up to inspect. they were a claimant the manager tries his best to avoid working on geico insured cars.
Last edited by Mr T2U; 03/21/23 06:26 PM.
perception is 90% of reality
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: lilcuda]
#3131199
03/21/23 07:12 PM
03/21/23 07:12 PM
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Joined: Dec 2007
Posts: 19,918 Puttin' on the foil in Charles...
not_a_charger
OP
Mr. Big Shot Moparts Moderator
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OP
Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 19,918
Puttin' on the foil in Charles...
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I never knew about the combined ratio. I just looked up Allstate as I have had them for decades. Their CR was 112.6 for 2022! I just got my homeowner's policy renewal in the mail yesterday. I will look at it tonight. Thanks for the heads up and the info.
They are not good at underwriting. They're not State Farm bad, but they're not good. They suffer from some of the same issues SF does, or at least they (Allstate) did. Allstate was solidly in 2nd place for decades. I think they had 18% of the market at one point, back when SF had 1/3 of the market. Like SF, they got arrogant. And, like will happen to SF in the near future, Allstate got knocked down a few pegs. They bought National General a few years ago in order to increase their market share, but NatGen was a pretty terrible company. They had difficulty retaining talent because it was miserable place to work. I know that Allstate was hoping to change that.
Earning every penny of that moderator paycheck.
DBAP
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: not_a_charger]
#3131203
03/21/23 07:23 PM
03/21/23 07:23 PM
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Joined: Jan 2003
Posts: 16,822 Between Houston & Galveston TX
SattyNoCar
Smarter than no class Flappergass by a mile
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Smarter than no class Flappergass by a mile
Joined: Jan 2003
Posts: 16,822
Between Houston & Galveston TX
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I know you stated home and auto, but I think it may be a good time to check around for even just auto right now. Saved my Mother about $50 a month. May not sound like a lot, but when you're on fixed income, it is a lot.
John
The dream is dead, long live the dream.......😥
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: not_a_charger]
#3131232
03/21/23 08:46 PM
03/21/23 08:46 PM
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Joined: Dec 2009
Posts: 20,640 in a cattle trailer down by th...
Guitar Jones
Paddle faster! I hear banjo music!
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Paddle faster! I hear banjo music!
Joined: Dec 2009
Posts: 20,640
in a cattle trailer down by th...
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So you switched insurance companies? You don't buy insurance from the company you work for?
"Follow me the wise man said, but he walked behind"
'92 D250 Club Cab CTD, 47RH conversion, pump tweaks, injectors, rear disc and hydroboost conversion. '74 W200 Crew Cab 360, NV4500, D44, D60 and NP205 divorced transfer case. Rear disc and hydroboost conversion. 2019 1500 Long Horn Crew Cab 4WD, 5.7 Hemi.
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: not_a_charger]
#3131252
03/21/23 09:20 PM
03/21/23 09:20 PM
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Joined: Dec 2009
Posts: 20,640 in a cattle trailer down by th...
Guitar Jones
Paddle faster! I hear banjo music!
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Paddle faster! I hear banjo music!
Joined: Dec 2009
Posts: 20,640
in a cattle trailer down by th...
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So you switched insurance companies? You don't buy insurance from the company you work for? I do now. 1st time ever. Ah, wow, I'm stunned.
"Follow me the wise man said, but he walked behind"
'92 D250 Club Cab CTD, 47RH conversion, pump tweaks, injectors, rear disc and hydroboost conversion. '74 W200 Crew Cab 360, NV4500, D44, D60 and NP205 divorced transfer case. Rear disc and hydroboost conversion. 2019 1500 Long Horn Crew Cab 4WD, 5.7 Hemi.
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: Guitar Jones]
#3131316
03/22/23 06:06 AM
03/22/23 06:06 AM
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Joined: Dec 2007
Posts: 19,918 Puttin' on the foil in Charles...
not_a_charger
OP
Mr. Big Shot Moparts Moderator
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OP
Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 19,918
Puttin' on the foil in Charles...
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I always wanted to keep that separate, regardless of who I would've worked for. Having a claim with one's employer has, in some circumstances (theft, uninsured motorist injury involving a hit-skip), the potential to be a little weird. However, everyone else's rates for me jumped so much that I couldn't say no. The 2nd lowest quote I got was from Safeco, which was $600/year more than what I'm paying. Also, I like to keep home/auto with the same carrier, and my employer did not have their own homeowner's coverage until a few years ago.
I had MetLife for home/auto for years. Their claims service sucked, but since I do that for a living, I was willing to deal with it because my rates were so much lower than any other carrier I was quoted. A few years ago, Farmers bought MetLife's home/auto business, and my rates went up a bit, though still cheaper than other quotes I got. This year, they skyrocketed.
Earning every penny of that moderator paycheck.
DBAP
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: poorboy]
#3131319
03/22/23 06:10 AM
03/22/23 06:10 AM
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Joined: Dec 2007
Posts: 19,918 Puttin' on the foil in Charles...
not_a_charger
OP
Mr. Big Shot Moparts Moderator
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OP
Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 19,918
Puttin' on the foil in Charles...
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For those of us not so smart, could you tell us what the top 10 companies are? Home: State Farm Allstate USAA Liberty Mutual Farmers Travelers American Family Nationwide Chubb Progressive Auto: State Farm Progressive Geico Allstate USAA Liberty Mutual Farmers Nationwide American Family Travelers
Earning every penny of that moderator paycheck.
DBAP
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Re: Suggestion from your friendly neighborhood insurance guy
[Re: MI_Custumz]
#3131323
03/22/23 06:36 AM
03/22/23 06:36 AM
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Joined: Dec 2007
Posts: 19,918 Puttin' on the foil in Charles...
not_a_charger
OP
Mr. Big Shot Moparts Moderator
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OP
Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 19,918
Puttin' on the foil in Charles...
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Yes, the various Farm Bureaus are small carriers and some of those carriers have done well enough to not have to raise rates, or have been able to reduce rates.
Earning every penny of that moderator paycheck.
DBAP
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