Car Insurance

[Pete]

Car insurance is a mystery to me. How you can go to 4 different companies price the same level of coverage with the same circumstances, age, sex, miles driven, make of auto, and get 4 wildly different quotes is amazing.

Now I have USAA for autos. I understand the group of people they insure is more focused on military and retired military and not the cross section of society as a whole. I understand their customers could be statistically considered lower risk because of factors engrained by military training, preparation, safety, risk assesment, higher rates of seat belt use, and so on. But how could other mainstream insurance companies who share the same pool of customers be so damn different?

It is almost like they have an inter-industry lottery agreement. Every 3rd quote you are required to go friggin nuts to spread the wealth.

 

[GWguy]

Car insurance is a mystery to me. How you can go to 4 different companies price the same level of coverage with the same circumstances, age, sex, miles driven, make of auto, and get 4 wildly different quotes is amazing.

Now I have USAA for autos. I understand the group of people they insure is more focused on military and retired military and not the cross section of society as a whole. I understand their customers could be statistically considered lower risk because of factors engrained by military training, preparation, safety, risk assesment, higher rates of seat belt use, and so on. But how could other mainstream insurance companies who share the same pool of customers be so damn different?

It is almost like they have an inter-industry lottery agreement. Every 3rd quote you are required to go friggin nuts to spread the wealth.

Lots of different factors. In the case of Erie, they don't insure in all states (or so I've been told). By reducing their liability in those states, they can lower costs overall.

 

[Pete]

Lots of different factors. In the case of Erie, they don't insure in all states (or so I've been told). By reducing their liability in those states, they can lower costs overall.

True, small regional independents may enjoy less risk but State Farm, Allstate, Giego, Nationwide?

 

[GWguy]

True, small regional independents may enjoy less risk but State Farm, Allstate, Giego, Nationwide?

CEO wants a bigger boat, your costs go up ? :shrug:

 

[lovinmaryland]

Keep an eye on that. Progressive is known for a low initial rate, then start bumping it up.

You also want to make sure they quoted you the same liability that you previously had. Having the same deductibles previously is nice...but if you have the state minimum for the rest of the coverage youre screwed if you have an at fault accident!

Car insurance is a mystery to me. How you can go to 4 different companies price the same level of coverage with the same circumstances, age, sex, miles driven, make of auto, and get 4 wildly different quotes is amazing.
.

Most people dont do this though. I would say 90% of the people that contact me for insurance have no clue what their liability limits are, what their deductibles, etc... I like to quote apples to apples and then go over what they have and give them suggestions on how to increase their coverages or lower/raise deductibles. I can tell you most companies if you dont ask wont do that. They will quote you at the state minimum to get you in the door.

 

[ArkRescue]

Saving money is always good; but you also have to take into consideration how much coverage you get.
You never want to not have enough. JMO

I believe the minimum coverage in MD recently increased also, so people will likely see increases in their premiums.

 

[ArkRescue]

Car insurance is a mystery to me. How you can go to 4 different companies price the same level of coverage with the same circumstances, age, sex, miles driven, make of auto, and get 4 wildly different quotes is amazing.

Now I have USAA for autos. I understand the group of people they insure is more focused on military and retired military and not the cross section of society as a whole. I understand their customers could be statistically considered lower risk because of factors engrained by military training, preparation, safety, risk assesment, higher rates of seat belt use, and so on. But how could other mainstream insurance companies who share the same pool of customers be so damn different?

It is almost like they have an inter-industry lottery agreement. Every 3rd quote you are required to go friggin nuts to spread the wealth.

I qualify to get USAA, but didn't want to ask my family member to jump through hoops for me to get it, you know? They themselves have GEICO (and have for maybe 30 years or more?) because he doesn't like to change companies. He'd probably pay less with USAA.

 

[Chasey_Lane]

USAA

Many years ago I contacted them about coverage and they wanted over $3K a year to insure. I stuck with Nationwide for $1K per year. HUGE difference.

 

[rich70]

Keep an eye on that. Progressive is known for a low initial rate, then start bumping it up.

I don't really know anything about them but I will keep an eye out for that. Thanks for the heads up.

 

[rich70]

Car insurance is a mystery to me. How you can go to 4 different companies price the same level of coverage with the same circumstances, age, sex, miles driven, make of auto, and get 4 wildly different quotes is amazing.

Now I have USAA for autos. I understand the group of people they insure is more focused on military and retired military and not the cross section of society as a whole. I understand their customers could be statistically considered lower risk because of factors engrained by military training, preparation, safety, risk assesment, higher rates of seat belt use, and so on. But how could other mainstream insurance companies who share the same pool of customers be so damn different?

It is almost like they have an inter-industry lottery agreement. Every 3rd quote you are required to go friggin nuts to spread the wealth.

Thats excatly what I'm saying. I don't understand how the hell it works either

 

[ArkRescue]

Many years ago I contacted them about coverage and they wanted over $3K a year to insure. I stuck with Nationwide for $1K per year. HUGE difference.

wow and here all this I thought USAA was the cheapest hmm.

 

[Pete]

Many years ago I contacted them about coverage and they wanted over $3K a year to insure. I stuck with Nationwide for $1K per year. HUGE difference.

Homeowners through USAA is expensive. They told me because they insure a bunch in Texas and they had a huge black mold problem down there that cost them huge.

 

[ArkRescue]

Homeowners through USAA is expensive. They told me because they insure a bunch in Texas and they had a huge black mold problem down there that cost them huge.

I lived in a house with mold and ended up going to a breathing specialist and was on all kinds of meds for the year and a half I lived there. It's no fun when you feel like it's hard to breathe.

 

[bcp]

What I like about the insurance is that when you buy a new car, lets say its replacement value is 50k, you pay based on the insurance company taking a chance on that 40k they will lose if it is totaled.
5 years down the road when the car is worth maybe 25k, and their exposure is reduced by half, your premiums have actually gone up a few percentage points.
They dont reduce the price to reflect the reduction in exposure. I personally think its criminal.
If they are going to keep charging based on 50k, then that is what you should get when its totaled.

 

[Chasey_Lane]

What I like about the insurance is that when you buy a new car, lets say its replacement value is 50k, you pay based on the insurance company taking a chance on that 40k they will lose if it is totaled.
5 years down the road when the car is worth maybe 25k, and their exposure is reduced by half, your premiums have actually gone up a few percentage points.
They dont reduce the price to reflect the reduction in exposure. I personally think its criminal.
If they are going to keep charging based on 50k, then that is what you should get when its totaled.

Maybe Lovin can explain this for us?

My premium is less than my husband's vehicle, and my car is worth more. He has no tickets and neither do I (that are showing at least ).

 

[lovinmaryland]

What I like about the insurance is that when you buy a new car, lets say its replacement value is 50k, you pay based on the insurance company taking a chance on that 40k they will lose if it is totaled.
5 years down the road when the car is worth maybe 25k, and their exposure is reduced by half, your premiums have actually gone up a few percentage points.
They dont reduce the price to reflect the reduction in exposure. I personally think its criminal.
If they are going to keep charging based on 50k, then that is what you should get when its totaled.

Maybe Lovin can explain this for us?

My premium is less than my husband's vehicle, and my car is worth more. He has no tickets and neither do I (that are showing at least ).

So lets say you bought that $50k car and 6 months later got into an accident w/ a deer causing $30k in damage. So they repair the damages. Then 1 year later you get in a fender bender w/ $15k in damage so they repair that. Then 2 years later your veh is keyed in a parking lot causing $5k in damages they repair that. Now youre at $50k in repair damages on a veh that now is probably only worth $30k. That isnt including any windshield replacements either.

Insurance just isnt based on the value of the veh. There are hundreds of factors where you live, youre personal driving record, your age, amount of time you've had your license, type of veh your insuring, etc...

 

[Chasey_Lane]

Insurance just isnt based on the value of the veh. There are hundreds of factors where you live, youre personal driving record, your age, amount of time you've had your license, type of veh your insuring, etc...

I get that, but as bcp pointed out, older vehicles usually cost a bit more to insure than newer vehicles. Hubby is older and has a better driving record and his premium is still more, but not by much. Just find it confusing.

 

[lovinmaryland]

I get that, but as bcp pointed out, older vehicles usually cost a bit more to insure than newer vehicles. Hubby is older and has a better driving record and his premium is still more, but not by much. Just find it confusing.

Because a lot of time it is harder to find replacement parts for older vehs, newer veh have more safety features, etc...

 

[kwillia]

Because a lot of time it is harder to find replacement parts for older vehs, newer veh have more safety features, etc...

Aaaa! That makes sense. I watch Pawn Stars and they are always leery of older vehicles exactly because of the time and expense that would be tied into getting replacement parts for the restoration.

 

[DEEKAYPEE8569]

I believe the minimum coverage in MD recently increased also, so people will likely see increases in their premiums.

Oh, goodie!!!