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Spiralling auto insurance

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  • #31
    Originally posted by Sigrid View Post
    We pay about $1k per vehicle per year, although we live in Michigan, notoriously the worst state for auto insurance. Will be interested to see how it changes when we move to Rhode Island this summer.
    Why do you think its so expensive in MI ? Drivers can't be much worse than in RI I assure you

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    • #32
      Originally posted by childay View Post

      Why do you think its so expensive in MI ? Drivers can't be much worse than in RI I assure you
      For a long time, Michigan topped the chart of "most expensive states to buy car insurance in", primarily because it was the only state that mandated that auto insurance contain unlimited, lifetime coverage for any and all medical bills related to any injury sustained in an auto accident. The high number of uninsured drivers and rampant auto theft endemic to the Detroit area didn't help, but the cost disparity was primarily due to the medical coverage law.

      Sick of being # 1 on that particular chart, the Michigan legislature last year changed the law so that it is no longer mandatory to carry unlimited coverage. PMR docs are upset, because now they have to deal with medical insurance instead of auto insurance. Auto insurance companies are upset, because they were found to be sitting on a giant pile of cash "just in case we have a bunch of claims all at once" and now they're supposed to give it back. Drivers were initially pleased, but are now upset, because subsequent reductions in the cost of auto insurance have been slower than promised. Supposedly we will one day make it off the top of that list.

      I'm originally from Los Angeles. Michigan drivers think other Michigan drivers are terrible, but trust me, they don't hold a candle to LA drivers. My car insurance still cost considerably more in Michigan.

      (Edited because "#" and "1" together apparently puts a "Home" link in your text???)
      Last edited by Sigrid; 04-08-2022, 05:06 PM.

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      • #33
        Originally posted by Kamban View Post

        I have tried my best to practice this but one cannot help but hit someone when they suddenly pull up in front of you. The police placed the fault on the other person and their USAA insurance paid fully and my insurance did not pay a penny but I still had to report it to them so that in the future should something go wrong I am not left holding the bag.
        Explain this please. "I still had to report it to them so that in the future should something go wrong I am not left holding the bag."
        My understanding is if you report to your insurance company, they actually settle the claim and seek reimbursement from the other insurance company.
        That eliminates the risk and hassle of settling the claim.
        However, subrogation leaves you with your insurance adjuster's judgement instead or the other company. Which one is better is questionable. Diminished Value is a separate claim. That is also a fight. Negotiations between insurance companies are closed to you and the companies settle. Often in away that simply "closes" another claim. Hassle factor yes. But I am not aware of a risk factor. You are trusting your insurance rather than the other.

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        • #34
          Insurance rates are "approved" by the state insurance commissions. Probably major influence from a political point of view and the starting point. If a rate increase is denies, the option for the insurance company is to stop selling policies in that state. Not aware of auto policies being withdrawn, health insurance and homeowners have withdrawn.

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          • #35
            I’ve had State Farm auto since I started driving at age 16, 66 now. Combine with homeowners and 5 mil. Umbrella. 3 cars all at 300K. Drive safe and save in all cars. 3 drivers 66,62,26. No accident for 10 years
            Honda Odyssey 2015 $358 (Colorado)
            Honda CRV 2016 $567 (Florida)
            Tesla model S 2018 $513 (Florida)
            Significant savings with drive safe program

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            • #36
              Originally posted by Craigslist View Post
              i think something is wrong i pay 2400 every 6 months for my tesla model y (but i live in florida so that might be why?).
              wait what

              This is literally insane, ~ 3-4x what a comparable MSRP car would be on average for an adult who isn't like 25 years olds. Do you have mega high coverage?

              That's pretty funny, anything you are saving in gas you are blowing in increased insurance cost.

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              • #37
                Not meant to be political. Some places have DA’s that are refusing to prosecute and extremely “lenient” judges. The question becomes is there a possibility that some places lose control of roads and driver’s licenses? Get a ticket, if the offender chooses to contest, a DA has to prosecute. I can see a potential for the dismissals occurring in the criminal courts bleeding into traffic courts.
                I have no doubt insurance companies would shift the cost. Where you live both local and stay could turn the rate setting and shift the cost.
                Why get a DL and why get insurance? Easy to get dismissed. Not your fault, without a court judgement it’s a mess.

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