Submitted by Grayjay000 t3_yhxtz6 in personalfinance
evantobin t1_iuhccft wrote
Reply to comment by Ancient-Matter-1870 in Your insurance will most likely be going up by Grayjay000
Because insurance is a pool. You might not be having claims but your neighbors might be. Auto thefts were up 16% last year and are up 30-80% this year in some jurisdictions that are already reporting numbers. Rates were artificially low during the pandemic because of a reduction of crime and driving, it’s back to business for criminals and commuters.
Thebanks1 t1_iuhnvrs wrote
Vehicles are also being destroyed/damaged at much higher rates with more and more severe weather events occurring.
For example imagine all the cars that are total losses from the Ian flooding.
xuaereved t1_iuiks8n wrote
Not to mention the pricing of cars right now, insurance didn’t plan on dealer mark ups and chip shortages resulting in 10-15% price hikes on basic vehicles.
evantobin t1_iui3ypi wrote
Yep! That’s not an issue where I live, but given that you can barely get home insurance in Florida now I wonder what car insurance is like. The fires on the west coast must be pretty hard for rates too.
jestler4 t1_iuk1zjs wrote
Every state has something they deal with like hail, tornados etc that add risk to insurance
ProfessionalBasis834 t1_iuj1yon wrote
I think the pandemic induced parts shortage and labor shortages have also driven up the cost of collision repair. Also, cars are so much more complex today, what was minor fender bender 25 years ago ("a scratch"), could today involve recalibrating radar, parking sensors, de-crumpling crumple zones, etc.
slapstick223 t1_iuhmjtv wrote
The people who are causing the issues should be the ones paying additional into that pool. That's not fair to the people who don't file claims and get tickets
And here I was always under the assumption the older I got the cheaper insurance would get. Yet another thing I was lied too about
SlowMolassas1 t1_iuhu44r wrote
>The people who are causing the issues should be the ones paying additional into that pool. That's not fair to the people who don't file claims and get tickets
So you're basically just trying to eliminate insurance entirely? I mean, that's how a non-insurance world works -- those who have an issue, pay. Those who have no issues, don't.
The point of insurance is to spread costs across a wider group -- so when you do get hit with something, you don't have to pay the full amount out of pocket.
And you realize, right, that not everyone who has an issue "caused" it -- it's not like they did a hail dance to call up a storm or something.
evantobin t1_iui3ntn wrote
“Gotta take advantage of this low deductible, get me my rain stick and some ice”
AaronfromKY t1_iuhnea7 wrote
They spread it out because having your car stolen or wrecked when it wasn't your fault already sucks enough. Also my insurance got a lot more reasonable in my 30s YMMV.
TathanOTS t1_iuhuhyy wrote
It does get RELATIVELY cheaper but I'm sure no one actually told you insuarance would be less actual money ten years in the future.
You don't pay more because of other people. You pay more because the math the insuarance did is saying your probability of having an accident is going up.
That said in this instance it's mostly lazy people getting affected. In many cases related on this sub recently (and actually I haven't posted but in my case too) switching insuarance has not only negated the increase but often resulted in a lower premium than the old rate was before the increase. YMMV.
dust4ngel t1_iuis935 wrote
> The people who are causing the issues should be the ones paying additional into that pool
get a handful of tickets doing 70 in a 40 and see if this is the case.
tr_9422 t1_iui1dpm wrote
By that logic let’s just get rid of insurance entirely and the people whose cars get totaled can go buy a new car. My car’s not totaled, why should I be paying insurance premiums for the insurance company to replace theirs?
Literally the whole point of insurance is to take random risks like that and spread the cost to everyone regardless of who is personally affected.
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