Insurance is a rip off

[b35w]

One of my customers sent me a message yesterday and asked how my schedule was. One of her windows got broken from storm. Insurance gave them 65.00 for it to be replaced. Not to mention this is a 600.00 window and then to install it.

I mean where is the logic in that

Probably had a $500 deductible and there was most like depreciation held until the job was complete. Just speculation


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[trkykilr]

I sell insurance.

I believe insurance has two purposes.

The first is for CYA compliance. Some entities have to have insurance to meet governmental requirements and I don’t make those rules.

The second is for events that you can’t reasonably save for. A cancer diagnosis, a total loss in a house fire, getting into an accident where there’s a fatality, life insurance on a primary wage earner, etc. I have advised clients as recently as last week to drop coverage that I provided.

In my opinion, insurance is for something that you can’t reasonably plan for (catastrophic). What is catastrophic to one person may be a blip to another. Figure out where you fall and purchase accordingly.

[tprice]

Increases suck I get it but statistically speaking there is absolutely no way the numbers work if you only increased the premiums of those who file claims. Use my example above……we could quadruple their premium and never even break even.


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As I tell my adult kids, sometimes you THINK you may be "insurance poor" UNTIL YOU NEED IT

I have enough business sense to realize premiums have to go up as cost of vehicles and houses jumps through the roof

Trust me folks are making a LOT MORE MONEY now than 5-10 yrs ago across the board but for some reason they think all other costs should never increase

I honestly always hope I am "wasting money" on insurance but I sleep well at night knowing my ass is covered

Got a friend now with a 2nd huge oak tree on his Mom's house in last 3 yrs , no way that insurance company has ever or will ever make enough to recoup that insured claims

You can tell I am a firm believer in insurance

[Maggie Glover]

I think agents should explain to customers about the "claim recovery" surcharge that insurance companies can charge and also explain that insurance companies have a "claim reporting system" like credit scores so you cannot really get away from said claim recovery charges (I cannot remember the exact name of the claim receiver surcharge, but I am close.).

I carry high deductibles ($1,500) but I assure you that I will never make a claim for anything under $10,000 again. I think it is less than honest for an insurance company to claw back a claim from you after you have been a customer for a significant period of time. MG

[b35w]

I think agents should explain to customers about the "claim recovery" surcharge that insurance companies can charge and also explain that insurance companies have a "claim reporting system" like credit scores so you cannot really get away from said claim recovery charges (I cannot remember the exact name of the claim receiver surcharge, but I am close.).

I carry high deductibles ($1,500) but I assure you that I will never make a claim for anything under $10,000 again. I think it is less than honest for an insurance company to claw back a claim from you after you have been a customer for a significant period of time. MG

Accident surcharge is just that…….its a surcharge for having an accident. When you are rated, you are rated for not having an accident (if you haven’t had one). Your agent should be having the conversation with you in the instance of a claim any claim has the potential to affect future premiums.


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[b35w]

I think agents should explain to customers about the "claim recovery" surcharge that insurance companies can charge and also explain that insurance companies have a "claim reporting system" like credit scores so you cannot really get away from said claim recovery charges (I cannot remember the exact name of the claim receiver surcharge, but I am close.).

I carry high deductibles ($1,500) but I assure you that I will never make a claim for anything under $10,000 again. I think it is less than honest for an insurance company to claw back a claim from you after you have been a customer for a significant period of time. MG

And on the flip side, you are rewarded for not having accidents hence why we have good driving discount for new policy holders and a 3, 6 and 10 year accident free discount for existing. 10 year comes with “accident forgiveness”.


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[Mars Bluff]

Its been bad the past couple years but its about to get REALLY bad. With the area that got smoked by the hurricane being the "holy grail" for insurance carriers, expect huge increases for less coverages. The strip that got damaged in the upstate & mountains has been the cash cow for insurance companies & has helped offset the claims for the eastern portion of the state. One carrier I know of endorsed flood coverage as a "perk" on their home policies in NC. NEVER expecting the hills to get flooded. They may go under over this.

And to the ones shopping your home ins, DO NOT cancel the current policy for at least one month after taking out new coverage. The new carrier may cancel after inspection & you will not be able to go back to previous company. You'd think the companies would want all the business they can get for profits but business is not profitable right now & the do not want it. People get offended when they get told they do not want your business but believe me, they do not! Once they revamp rates & lower coverages, they'll be blowing up your mailbox, tv & emails with ads.

[b35w]

Its been bad the past couple years but its about to get REALLY bad. With the area that got smoked by the hurricane being the "holy grail" for insurance carriers, expect huge increases for less coverages. The strip that got damaged in the upstate & mountains has been the cash cow for insurance companies & has helped offset the claims for the eastern portion of the state. One carrier I know of endorsed flood coverage as a "perk" on their home policies in NC. NEVER expecting the hills to get flooded. They may go under over this.

And to the ones shopping your home ins, DO NOT cancel the current policy for at least one month after taking out new coverage. The new carrier may cancel after inspection & you will not be able to go back to previous company. You'd think the companies would want all the business they can get for profits but business is not profitable right now & the do not want it. People get offended when they get told they do not want your business but believe me, they do not! Once they revamp rates & lower coverages, they'll be blowing up your mailbox, tv & emails with ads.

It’s not that companies don’t want the business just for the sake of saying no. It’s strictly a numbers game. We concede and are prepared to operate and an underwriting loss but not at 118-120%. It’s bad business to take in a $1 in premium and pay out $1.18.

The “big guys” can operate on small underwriting losses because they are investing the premiums but no other business in the world would willing agree to lose 20% and make no changes.


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[Maggie Glover]

Accident surcharge is just that…….its a surcharge for having an accident. When you are rated, you are rated for not having an accident (if you haven’t had one). Your agent should be having the conversation with you in the instance of a claim any claim has the potential to affect future premiums.


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Claim for a $2,000 utility trailer cost me ~$3,700 in premiums over the following four years. Me paying for my claim (in premiums) before and after the loss seems unethical to me. However, it was an education, and all education has costs. Mine was $3,700 to realize that moving my deductibles to maximum and never filing a claim was the answer to the final exam. MG

[USMCsilver]

Oh, and I forgot to add……said customer had another tree fall on their shed 2 months later and will have damages exceeding 15k.


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Stupid question here:

Let's say a homeowner has 10-15 LARGE trees that could possibly fall on a house and the homeowner wants to cut down the trees to mitigate the risk. BUT -- the fees to remove the trees are astronomically high.

Will an insurance company pay/partially pay for tree removal so they wouldn't have to possibly pay out for huge damages in the future?

[b35w]

Stupid question here:

Let's say a homeowner has 10-15 LARGE trees that could possibly fall on a house and the homeowner wants to cut down the trees to mitigate the risk. BUT -- the fees to remove the trees are astronomically high.

Will an insurance company pay/partially pay for tree removal so they wouldn't have to possibly pay out for huge damages in the future?

Negative


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[b35w]

Claim for a $2,000 utility trailer cost me ~$3,700 in premiums over the following four years. Me paying for my claim (in premiums) before and after the loss seems unethical to me. However, it was an education, and all education has costs. Mine was $3,700 to realize that moving my deductibles to maximum and never filing a claim was the answer to the final exam. MG

A $2000 utility trailer should be costing you less than 200/year. Did they file it out your homeowners? Should be on a separate policy.


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[centurian]

Most of the carriers in NC will not write a home owners policy if they cant get your auto policy(what does that tell you). It cuts back on the the options for carriers and price negotiations. I didn't have an auto policy since all my vehicles were company vehicles insured under the commercial policy. Made a new home owners policy difficult. Definately get your new policy going before letting the old policy lapse.

Also changing insurance companies does not wipe out your loss history which is easily available to your new prospect.

[wob]

Boozer nailed it. Insurance is for catastrophes. Who in the world advised that lady in the earlier example that it was a good idea to get insurance involved over a broken window?

[b35w]

Boozer nailed it. Insurance is for catastrophes. Who in the world advised that lady in the earlier example that it was a good idea to get insurance involved over a broken window?

That is the problem……they didn’t. It’s what happens when you get 800 number insurance.


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[ecu1984]

By the way, that homeowner will probably be canceled when the last check is mailed and premiums will increase for the rest of the customers you insure…that’s how it usually works.

Correct and for the one customer that got paid, there were millions that pay month after month and never file a claim.
Then file a claim and have your rate increase because you are a "risk" or get cancelled.
It's the nature of the beast, and you are required by law to carry it on your cars and lien holders require it too.
It's sorta like organized crime's "protection" money

[b35w]

Correct and for the one customer that got paid, there were millions that pay month after month and never file a claim.
Then file a claim and have your rate increase because you are a "risk" or get cancelled.
It's the nature of the beast, and you are required by law to carry it on your cars and lenders.
It's sorta like organized crime's "protection" money

I know that’s the way you see it and I saw it the same way but it’s simply doesn’t work out like that. Over the past couple of years claims paid out far exceeds premium taken in. It does not make business sense to operate in that capacity.


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[joshua2]

You know it’s bad when your very own agent tells you to shop around for car insurance and even goes as far to tell you where to start looking and what to expect. That’s what mine did and after nearly my entire adult life I don’t have any vehicles with State Farm. Taxes and insurance are 2 of the worst crimes against this country since the civil rights age. You can argue all you want but my opinion is mine and I’ll live with it.

[thunderchicken]

Sorry, but insurance is the biggest scam this country has ever seen.

[b35w]

Sorry, but insurance is the biggest scam this country has ever seen.

Elaborate


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