State Farm Monster Loss Announced ~Insurance

[Polo08816]

If someone is cheaper than USAA, i would still stick with USAA. The couple of times I have had to make a claim they were totally fair - no BS.

This.

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[Boyk1182]

This is a timely post because we have State Farm and my wife’s car is currently being repaired after a minor hit and run accident. I talked to the repair shop and they said they’re feathering the paint on the rear bumper after the repair, not painting the whole thing. They said the insurance companies don’t want to pay for all of the paint. I couldn’t believe that. Our rates have also gone up recently unrelated to that claim. It may be time to start looking for a new insurance company.

 

[brfertig]

I find that USAA is slightly more expensive, but it's worth it. I've never had an issue with them when I decide what facility I want the vehicle repaired at. They're pretty aggressive in recovering my deductible.

Most of the time, you get what you pay for.

Totalled a car from a Texas hail storm. USAA paid it off and allowed me to keep it to resell. My home had a blown drain pipe from years of neglect USAA covered it on active duty. Then I had a hail storm ruin my home and USAA paid out. THey have always been fair at a slightly higher premium. I will trust them the rest of my life probably. My kids are now eligible and I got my oldest ready for a quote when he turns 18 in July.

 

[Lite4d]

Totalled a car from a Texas hail storm. USAA paid it off and allowed me to keep it to resell. My home had a blown drain pipe from years of neglect USAA covered it on active duty. Then I had a hail storm ruin my home and USAA paid out. THey have always been fair at a slightly higher premium. I will trust them the rest of my life probably. My kids are now eligible and I got my oldest ready for a quote when he turns 18 in July.

I would have stuck with USAA if it were only slightly higher, but going from $1600/6mi to $2800 for two vehicles with no claims or tickets is just a little ridiculous. I don’t care how good their claims service is and I do agree they outshine everybody else in that area.

 

[Bossharp]

In Williston Florida they will not arrest illegals because they have to feed house and provide medical care..If we filled up for profit jails and they got MINIMUM care and 'comfort' word would get back. And send them back too..
Edit: #Roundthemup!

 

[WhiteLightningnshitshadow]

Insurance is a legalized racket. You pay,pay and pay and then when you need them, they whine and stall to pay out.

Exactly. I couldn't give less of a fuck when I've paid nearly 100k over just a few years just like most others and had to use it last year for about 30-40k between the house and truck with hail. If they lost or misused my 100k, I should have the option to self insure via an escrow account.

The insurance process has done NOTHING but overinflate services. Most body shops here DO NOT accept work that isn't insurance sponsored because those fuckers are getting absolutely paiiiiid. When I did find someone willing to fix a small dent and scratch on my mustang, he not only did great job quickly, he charged me next to nothing and explained why other shops don't talk self sponsored walk-ins.

Insurance as a concept is the problem. Worse yet is people can't afford insurance so the scam isn't going to be self sustaining much longer as we're seeing with these increases culminating in a different kind of financial crisis.

 

[SALEEN961]

Exactly. I couldn't give less of a fuck when I've paid nearly 100k over just a few years just like most others and had to use it last year for about 30-40k between the house and truck with hail. If they lost or misused my 100k, I should have the option to self insure via an escrow account.

The insurance process has done NOTHING but overinflate services. Most body shops here DO NOT accept work that isn't insurance sponsored because those fuckers are getting absolutely paiiiiid. When I did find someone willing to fix a small dent and scratch on my mustang, he not only did great job quickly, he charged me next to nothing and explained why other shops don't talk self sponsored walk-ins.

Insurance as a concept is the problem. Worse yet is people can't afford insurance so the scam isn't going to be self sustaining much longer as we're seeing with these increases culminating in a different kind of financial crisis.

This might vary by state due to different laws and regulations, but in PA insurance companies normally only pay 35-65% of the labor rate that retail customers pay. The labor rates literally don't even cover the shop's costs in many cases and lead to widespread fraud as shops try to make a profit. It's often more profitable for shops to total cars and not repair them because the storage fees have better profit margins than anything else.

Many people would be surprised to hear how many body shops and junk yards are owned by insurance companies. Their only goal is to keep costs down and you'd be shocked by what the average customer fails to notice after their vehicle was "repaired". Some of the stuff I see being sold as "certified pre-owned" by major dealers is absolutely appalling. Bent frames, half of the bolts holding on crash bars are missing, broken lights, bent condensers, bent radiators, horrible paint matches, horns don't work, and people pay top dollar because they don't notice.

 

[HammaMan]

Insurance as a concept is the problem. Worse yet is people can't afford insurance so the scam isn't going to be self sustaining much longer as we're seeing with these increases culminating in a different kind of financial crisis.

Insurance needs to be allowed for purchase across state lines -- all forms. States have their own bit of nonsense mixed in. If someone can't afford insurance, a necessary and legal requirement of driving, they shouldn't be driving. Driving on public roadways is a privilege, not a right. Fortunately some states have laws that impound vehicle for no insurance / license. Basic liability cheap shit is just that. While 25k isn't much, it's enough to fix most victim vehicles and it's 5 or 6$/wk.

I'd really like to see laws taken a step further. Instant jail time. Even 5 days is enough to impact employment. I'm tired of paying for dumb people's flagrant disregard for basic rules of the road. I'm victimized by said people every time I pay insurance. Illegal motorists coverage is a line item on everyone's bill.

 

[gtotco]

It is much worse than that revenue vs expenses. Most if not all insurers have pretty standard 1985 asset mixes of bonds and securities, and the bloodbath in the bond market has affected insurers even more than pension funds (because pension funds have largely future obligations whereas insurers are getting a constant stream of claims). Bond PRICES are inversely related to bond COUPONS, and the dramatic rise in US interest rates led by the Fed has annihilated bond prices. If you held a bond, or worse still were invested in bonds using leverage, you took solid double digit percentage losses over the past 2 years. So we have about 5 stonks and bitcoin going gangbusters while most securities are flat and bonds are getting destroyed.

I haven't seen Michael Saylor open the Microstrategy Insurance Company yet (if I do, I'll short that too), so basically every other insurer has no choice but to squeeze blood from the stone that is their already hurting customers.

Things aren't good right now.

I was listening to Bloomberg Odd Lots the other day on an episode about property insurance and they also said that in that market at least (probably also for auto) insurers issue a lot of bonds also as part of their financing structure and so a lot of insurers are also getting slammed by higher rates hitting their financing costs.

Things will even out in insurance markets eventually (they usually do) but insurers definitely got nailed with a triple whammy of rising repair and replacement costs, increased financing costs, and American roadways generally turning into mad max. The first two problems will sort themselves out with a bit of time, the third issue I don’t see any indication of getting better anytime soon.

 

[TarnishedCopper]

I was listening to Bloomberg Odd Lots the other day on an episode about property insurance and they also said that in that market at least (probably also for auto) insurers issue a lot of bonds also as part of their financing structure and so a lot of insurers are also getting slammed by higher rates hitting their financing costs.

Things will even out in insurance markets eventually (they usually do) but insurers definitely got nailed with a triple whammy of rising repair and replacement costs, increased financing costs, and American roadways generally turning into mad max. The first two problems will sort themselves out with a bit of time, the third issue I don’t see any indication of getting better anytime soon.

But, likethe proce of gasoline, diesel or whatever, the price is raised outrageously, then when they can no longer justify the price, it is reduced, but only slightly, never to the pre-hike price.

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