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Car Insurance/Totaled Car Question

2&2's insurance is up because of all the immigrants coming across the border
 
JuiceCrewAllStar said:
why is a low-risk client's auto coverage increasing by 25%?
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ask the reinsurers, supply chain managers, body shop labor rates

cost per claim is up 30-40% since just last year and it was up 30% year over year in 2023.

and frequency rates (number of reported claims) are actually down for some claim types
 
JuiceCrewAllStar said:
why is a low-risk client's auto coverage increasing by 25%?
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There's not really a good, quick answer to this, as everything insurance companies do is based on actuarial data and algorithms at this point.

State Farm lost $10,000,000,000 (ten billion dollars) last year in underwriting losses on auto alone.
 
i'll be curious to see if thre is some significant reform in the insurance world, at least for home/property insurance

the rate increase is pretty nuts
 
state farm has been eating shit for years. they just have such a massive footprint they've absorbed it until this crush 2021-present
 
I got hit by an uninsured and unlicensed motorist, with no assets, 18 months ago and I think more and more millennials are going this route, shifting the insurance burden to responsible members of society.
 
JuiceCrewAllStar said:
i'll be curious to see if thre is some significant reform in the insurance world, at least for home/property insurance

the rate increase is pretty nuts
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home insurance has been underpriced for years, IMO and so now we've got a whiplash, and that's not even considering high risk areas/climate change. i have a feeling rates spiking for nonhigh risk parts of the country will start to even out in the next 18-24months
 
JuiceCrewAllStar said:
i'll be curious to see if thre is some significant reform in the insurance world, at least for home/property insurance

the rate increase is pretty nuts
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I've been writing insurance on the SC coast for 6 years since I moved down here, and objectively, the answer is to charge more for homes that are in high risk areas. Home and Flood Insurance has been so ridiculously underpriced for decades, and now that it's getting closer to where it "should" be, it's become hard for people to afford it. We're in a hard market right now and it's always cyclical - it should even out over the next 3-5 years.

That, however, is at odds with real estate/home builders/folks who want Charleston and the surrounding areas to keep growing.

If we priced home and flood insurance where it realistically should be based on the math behind the risks down here, it would be almost impossible to buy a home at the beach.
 
Biff Tannen said:
I got hit by an uninsured and unlicensed motorist, with no assets, 18 months ago and I think more and more millennials are going this route, shifting the insurance burden to responsible members of society.
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More evidence the insurance system is broken.
 
Biff Tannen said:
I got hit by an uninsured and unlicensed motorist, with no assets, 18 months ago and I think more and more millennials are going this route, shifting the insurance burden to responsible members of society.
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I don't really understand this for a majority of drivers, because if you don't have your vehicle insured then you're eventually going to get your license suspended and pay pretty large fines.

I do think most people are VASTLY underinsured (if you have $30K/$60K or whatever state min limits are, that is gone in an instant in even a medium sized wreck), and just taking the odds.
 
Deacsfan27 said:
I don't really understand this for a majority of drivers, because if you don't have your vehicle insured then you're eventually going to get your license suspended and pay pretty large fines.

I do think most people are VASTLY underinsured (if you have $30K/$60K or whatever state min limits are, that is gone in an instant in even a medium sized wreck), and just taking the odds.
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This dude didn't even have a drivers license. He didn't give a fuck.
 
anecdotally, it feels like people are driving more recklessly post-covid

cars are also getting bigger and bigger

i'm wondering if the per-claim increase is at all related to higher severity incidents related to these trends
 
JuiceCrewAllStar said:
pretty crazy

are there any working theories about what is going on? it can't just be a 30-40% increase in parts and labor


should probably just ban cars and build trains imo
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some other factors

  • many many existing buillding policies are underinsured - they were written in times before more sophistocated cost estimation was put in place so rates are just flat wrong
  • reinsurance rates have skyrocketed (insurance companies buying insurance against catastrophic claims/hurricanes/tornadoes, earthquakes, wildfires, etc)
  • cars are so expensive to fix between specialty frames (aluminum trucks), giant batteries, 50k worth of electronics/airbags - they get fucking totalled so fast now
  • carriers basically no longer subrogate (recover costs from at-fault companies) and if they do it's for 60-80 cents on the dollar so they're eating a lot more cost
 
JuiceCrewAllStar said:
pretty crazy

are there any working theories about what is going on? it can't just be a 30-40% increase in parts and labor


should probably just ban cars and build trains imo
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Fender benders are now $5K-$10K claims with OEM standards, backup camera, sensor adjustments, etc. That's one example of claims costing more.

Doesn't really dive into the exploitation of mechanics/adjusters on auto claims, or roofers who go around everywhere and tell homeowners to file claims on their roof to get a new one from a hail storm 4 years ago.
 
JuiceCrewAllStar said:
anecdotally, it feels like people are driving more recklessly post-covid

cars are also getting bigger and bigger

i'm wondering if the per-claim increase is at all related to higher severity incidents related to these trends
Click to expand...
not in terms of injuries/litigation, no.

liability claims are actually not a huge component, surprisingly
 
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