Let’s try this again since some people on here take any mention of a politician as an invite to start a lunch room fight…
My comment: Interestingly enough my ccap contract only mentions liability/collision ded of 1 k with no mention of prop coverage.
Just received my renewal with a 15% increase now a 100% increase since 2021.
I dropped some extra coverage like mechanical breakdown which seems to be redundant on a lease under warranty, rental coverage etc
This ^. @mani_is_kool posted an article above that pretty much summed up, with citations, why car insurance was getting so much more expensive. It’s not a mystery. And it’s not politics. It’s an actuarial equation. Selling car insurance has not been a profitable business the last few years.
If you want to keep it simple, just say inflation and you’re 99% right.
Inflation plays a big role as well as the increase in car prices that began even before post-pandemic inflation.
However I struggle to attribute the increase in road deaths per mile driven to inflation.
Cars have gotten so much safer over the past decade - the number of air bags, better designed crumple zones, wide spread adoption of safety features such as ABS and blind spot monitoring. So deaths per mile should be going down. But they are going up. To have an increase in deaths per mile driven while cars are getting safer you need a substantial increase in the number accidents.
In an increasingly nihilistic society, risky behavior becomes more prevalent. You should see some of the stunts I see people pull out on the highways and byways of America.
Runaway Inflation is a factor that contributes to this.
inflation causes people to become worse drivers???
Perhaps. Maybe even in 2019 and 2020 before it happened.
Did I say it was the sole factor?
what are we doing here?
I wonder if something major happened worldwide in 2020 to cause this? I can’t put my finger on it though.
The meme is greedy insurance companies raising rates. That’s what the MSM story is. But as usual, the MSM sucks at presenting data, mainly because the MSM is populated by generally stupid people who don’t understand anything.
Has anyone done a breakdown of YOY increase of premiums? Same car, same driver, no accidents, no tickets. What’s the % increase on average? I’d bet that will be a much different number than the overall average increase.
As has been mentioned above, EVs are a big part of the increase overall. EVs on average cost more to insure. So as anyone who completed a rudimentary HS math class would understand (ie nobody who works at CNN), as the percent of EVs sold increases, so will the overall average insurance premium. Don’t expect CNN to explain this though, it kills the coRporaTe gReeD narrative.
Also on the EV front, every EV is basically a sports car now. I don’t have data and too lazy to look, but I’m guessing there are more accidents per mile driven in EVs than ICE. When a Kia goes 0-60 in 3 seconds, that’s gonna fuel some aggressive driving that was once reserved for 911 owners. And now that Kia is viewed by insurance companies like a 911 is viewed by insurance companies.
Another reason is a drastic increase in jury awards. Any time a jury awards a $10M settlement that Allstate has to pay, guess what happens to Allstate premiums? Not that CNN will ever mention this of course. Nah, it’s just coRporaTe grEEd man!!
The number of auto accident settlements and verdicts that top $15 million has more than doubled in the past decade. Not all of this increase has come from economic inflation; there is a different kind of inflation that has caused auto accident verdicts to spike. Even if the actual costs related to transportation accidents have not dramatically risen, attorneys refer to “social inflation” as a prime factor in larger verdicts. Not only do plaintiffs’ attorneys condition accident victims to expect larger settlements, but litigants themselves have less aversion to large lawsuits. The growth of the litigation financing industry has also made it easier for plaintiffs to go the distance with large companies in court cases. Finally, the jury pool often consists of people who have been conditioned by the media to distrust corporations and want to punish them.
My Geico renewal has gone up another 15% plus the maximum property damage liability that they are offering in NJ seems to have dropped from $500,000 to $250,000.
NJM is significantly cheaper now…
500k property damage seems steep. I usually put mine for $100-150k.
That might be reasonable if you live in a less densely populated area but for city and suburbs 500K is wholly appropriate. You can never be too insured.
For property damage? I can understand $500k for bodily injury (which I do have too), but imho $100-150k for property damage seems sufficient.
Not too crazy to think nowadays – the roads are crawling with $100k+ cars in many cities and suburbs. Cause a 2 or 3 car accident that totals out 1 or 2 of the cars and you’re toast.
As someone who did some insurance defense work many years ago, this is correct. In a place with a lot of expensive cars you want a lot of coverage. Never mind Lambos or Ferraris, you wreck some Porsches you could be looking at a $200k bill.
That said, I never saw more than a $100k property damage bill doing insurance defense (this was 10+ years ago). What I did see was very large medical bills. So IMO, before someone pays for increased property damage coverage beyond, say $150k, I would increase my bodily injury limit. If you cause injury to someone without insurance, a couple days of inpatient ER care could easily run into six figures (insurance would negotiate this down but some people don’t have insurance). Also, you are responsible for all related subsequent care like physical therapy.
Just got my renewal, 23% increase. No claims, no nothing.
Annoyingly this isn’t even the first increase I’ve gotten from them in the last few years.
Pedestrian deaths have gone up, mostly because SUVs kill a lot more people than sedans do.
Last week I saw a group of kids, 12, 13 years old doing wheelies on their bikes in an intersection. Shit like that is prevalent now as well and must also be a contributing factor.
