Car Insurance?

[seannmelly]

I would definately have your parents shop around. When I was in high school I paid $780/yr something full coverage under my parents insurance. When I graduated and got my own insurance, the same company quoted me at $780/6 months for just basic liability. (Mind you at the time I had a clean driving record. I went to a different company and got it at $429/6 months. It's still alot but I saved over $600 a year by switching to a different company.

 

[1journeyman]

Originally Posted by Jovial
What statistics are used to justify higher insurance rates for someone who has had their credit destroyed due to identity theft or divorce through no fault of their own. How is a credit score corralate in anyway to how safe of a driver someone is, makes no sense to me. Using credit ratings to raise rates is another insurance skam IMO.
You're stating a specific incident. Statistics don't draw upon specifics.
Statistically, the lower the credit the more apt a person is to miss a payment and let the policy lapse. That's one reason why many companies offer discounts for EFTpayments tied to your bank account.

 

[jovial]

How come rates dont go down for everyone who pays on time then? If enroled in EFT and ones credit goes to crap due to job loss or divorce or ID theft they still raise the rates. They should base rates on on an individuals sustained driving history i.e, no accidents, tickets etc... not their payment history.
If someone misses a payment then isnt their insurance cancelled? How does financial reliabilty relate to driving safety? Trying to understand why insurance companies gouge the least prepared but fail to pay legitimate claims to the 100s who lost their homes in hurricane Katrina who had excellent credit ratings. I dont get it.

 

[reefreak29]

Originally Posted by Jovial
How come rates dont go down for everyone who pays on time then? I thought that insurance rates went down based on an individuals sustained good driving record i.e, no accidents, tickets etc... not their payment history.
If someone misses a payment then isnt their insurance cancelled? How does financial reliabilty relate to driving safety? Trying to understand why insurance companies gouge the least prepared but fail to pay legitimate claims to the 100s who lost their homes in hurricane Katrina who had excellent credit ratings. I dont get it.
thats just how it is , its all about money if u ask me

 

[jovial]

And greed.

 

[1journeyman]

Originally Posted by Jovial
How come rates dont go down for everyone who pays on time then? If enroled in EFT and ones credit goes to crap due to job loss or divorce or ID theft they still raise the rates. They should base rates on on an individuals sustained driving history i.e, no accidents, tickets etc... not their payment history.
If someone misses a payment then isnt their insurance cancelled? How does financial reliabilty relate to driving safety? Trying to understand why insurance companies gouge the least prepared but fail to pay legitimate claims to the 100s who lost their homes in hurricane Katrina who had excellent credit ratings. I dont get it.
Many companies do actually give discounts if you keep a policy in force with them over time.
There is a lot of insurance fraud. For instance, people come into our office and pay a downpayment for an auto policy. They get an insurance card good for 6 months. They quit paying, policy cancels, but they still have the proof of insurance card.
Not all companies use credit. You don't have to do business with one that does (but you'll pay more going through one of these other companies...). Remember, insurance is not a "right".
Many Katrina victims failed to carry flood insurance. Homeowner's policies do NOT cover "rising water" damage. Sorry, but if you live in a city, surrounded by water on 3 sides, and your house is below sea level and you don't carry flood insurance you deserve a beating, not money...
I'm not trying to defend insurance companies, just stating the facts. I actually had to take one of the companies we used to write Health insurance with to court because of the way they tried to handle one of my claims.

 

[1journeyman]

Originally Posted by reefreak29
thats just how it is , its all about money if u ask me
No question. Insurance companies are in it for money...

 

[michaeltx]

he cheapest place I have ever had insurance was in TX I paid 25 a month for liability INS when I moved back to AR its now 100$ for liability only for 2 cars.
it sucks too. I am 31 and havent had an accident since 1992 and that wasnt my fault LOL so yeah they are out for money till you need them then its the other way around they forget who you are LOL
Mike

 

[b0bby1]

i pay 1,500 n im 16 just got a chevy impala. usually around me in ct the kids have it around 2000. in ct everyone gets their licensce at 16 too. but i get 1000 off cus im on high honors n go to private school. pretty good deal but now i have to work to pay it off in the summa so i guess thers not gonna be many additions to my tank.

 

[b0bby1]

kids have it around 2500 ***^^^

 

[caleigh05]

here in the peg (canada) everyone pays the same, that is to say the same car will cost the same dosent matter if your 16 or 60. the only way to get a discount is by getting merits for every 2 years of clean driving no accidents that are your fault, and no traffic tickets, with a max of 5 which gives you 25% off. I think i have it pretty good as i only pay 1200 a year for my 01 silverado
without a discount

 

[jovial]

Originally Posted by 1journeyman
Many companies do actually give discounts if you keep a policy in force with them over time.
There is a lot of insurance fraud. For instance, people come into our office and pay a downpayment for an auto policy. They get an insurance card good for 6 months. They quit paying, policy cancels, but they still have the proof of insurance card.
Not all companies use credit. You don't have to do business with one that does (but you'll pay more going through one of these other companies...). Remember, insurance is not a "right".
Many Katrina victims failed to carry flood insurance. Homeowner's policies do NOT cover "rising water" damage. Sorry, but if you live in a city, surrounded by water on 3 sides, and your house is below sea level and you don't carry flood insurance you deserve a beating, not money...
I'm not trying to defend insurance companies, just stating the facts. I actually had to take one of the companies we used to write Health insurance with to court because of the way they tried to handle one of my claims.

Until you get into an accident or get a ticket. Accident forgiveness... not in the fine print

My Grandfather has had the same company for over 50 yrs with a great driving record, it didnt matter, they still tried to gouge him when he filed a claim. Had to take the company to court.
And if they get into an accident they go to jail. I dont think it is a good idea to impose a blanket policy on everyone.
For other than asset protection mandatory insurance should be abolished if you own your property outright. People should be allowed to make their own choice, after all one of the reasons the industry is so corrupt is because it is mandatory. Instead, the penalties for not having it should be more harsh. My friend was killed by a drunk uninsured illeagal alien. His insurance was current but did him no good.
Still dont see a correlation between safe driving and a credit score, the two are completely unrelated IMO?
Did you know many of these companies have defaulted on legitimate claims and continue to do so until this day. This includes those with flood insurance. 20/20 did a documentary on this several months ago.
Did I mention that both of my parents and inlaws work for insurance companies?

 

[jovial]

Originally Posted by 1journeyman
Many companies do actually give discounts if you keep a policy in force with them over time.
There is a lot of insurance fraud. For instance, people come into our office and pay a downpayment for an auto policy. They get an insurance card good for 6 months. They quit paying, policy cancels, but they still have the proof of insurance card.
Not all companies use credit. You don't have to do business with one that does (but you'll pay more going through one of these other companies...). Remember, insurance is not a "right".
Many Katrina victims failed to carry flood insurance. Homeowner's policies do NOT cover "rising water" damage. Sorry, but if you live in a city, surrounded by water on 3 sides, and your house is below sea level and you don't carry flood insurance you deserve a beating, not money...
I'm not trying to defend insurance companies, just stating the facts. I actually had to take one of the companies we used to write Health insurance with to court because of the way they tried to handle one of my claims.

Did I mention that both of my parents and inlaws work for insurance companies?

 

[1journeyman]

Originally Posted by Jovial
....
Did I mention that both of my parents and inlaws work for insurance companies?

Then I'm sure they can site you the statistics regarding risk and credit scores...

 

[jovial]

Originally Posted by 1journeyman
Then I'm sure they can site you the statistics regarding risk and credit scores...
And how they have no bearing on how safe of a driver someone is. Can you show me where I can find some of these studies that show how lower credit ratings cause bad driving?
http://redtape.msnbc.com/2006/04/recently_a_red_.html
I spoke to an Actuary about this. Statistically, people who have a poor insurance score are more likely to file a claim, however as mentioned earlier this does not account for those with stellar credit and driving records prior to a life changing event which caused the credit damage through no fault of their own, i.e job loss, or divorce or identity theft. This is why the concept of rates based on credit score is a skam which benefits the insurance companies (guess who pays the actuaries).
Insurance companies like to use as many factors as they can to determine rate costs. Why do you think this is so?

 

[1journeyman]

Originally Posted by Jovial
And how they have no bearing on how safe of a driver someone is. Can you show me where I can find some of these studies that show how lower credit ratings cause bad driving?
I spoke to an Actuary about this. Statistically, people who have a poor insurance score are more likely to file a claim, however as mentioned earlier this does not account for those with stellar credit and driving records prior to a life changing event which caused the credit damage through no fault of their own, i.e job loss, or divorce or identity theft. This is why the concept of rates based on credit score is a skam which benefits the insurance companies. Not the consumer.
Insurance companies like to use as many factors as they can to determine rate costs. Why do you think this is so?
That's exactly it. Insurance companies could care less how safe a driver you are, what they are worried about is statistically how much you are going to cost them.
As I said, Insurance companies are for profit companies. They want to make money.
Credit scores do help consumers; at least consumers with good credit. If you have good credit, get quotes from companies that use credit and don't use credit. The companies that use credit will be cheaper. (At least in Texas.)

 

[jovial]

Originally Posted by 1journeyman
That's exactly it. Insurance companies could care less how safe a driver you are, what they are worried about is statistically how much you are going to cost them.
As I said, Insurance companies are for profit companies. They want to make money.
Credit scores do help consumers; at least consumers with good credit. If you have good credit, get quotes from companies that use credit and don't use credit. The companies that use credit will be cheaper. (At least in Texas.)
Always liked your perspective, thanks for taking the time. Would you agree with the following statement:
Power tends to corrupt; absolute power corrupts absolutely.

 

[1journeyman]

Originally Posted by Jovial
Always liked your perspective, thanks for taking the time. Would you agree with the following statement:
Power tends to corrupt; absolute power corrupts absolutely.
Yup, unless I'm the one wielding the power

 

[scubaguy]

Originally Posted by lovethesea
that makes sense

BUT I still wanna know why Ryans is $2000 a year??? :scared:
just for him??? :notsure:
Try $3000 a year. Daughter had three cars in 1 year. First car broke from natural causes. Then 2001 PT Cruiser and ran into the back of a truck with a trailer hitch(Total) 1999 Saturn was coming back froma dance show. Wife driving in ice storm, spun out hit concrete barrier(Total) Now 2003 Chevy Malibu. Insurance told wife that our driving habits have changed in the past four years. Before this we had no accidents just a couple speeding tickets.

 

[imfsub12]

Originally Posted by caleigh05
here in the peg (canada) everyone pays the same, that is to say the same car will cost the same dosent matter if your 16 or 60. the only way to get a discount is by getting merits for every 2 years of clean driving no accidents that are your fault, and no traffic tickets, with a max of 5 which gives you 25% off. I think i have it pretty good as i only pay 1200 a year for my 01 silverado
without a discount
I miss my Manitoba PUBLIC Insurance.. now in Nova Scoita.. everything hurts you out here../
Pulic is the way to go...