Did your insurance go up?

**kellen** · 05-09-2009, 11:58 AM

Originally Posted by Insurance-Broker

You should be glad that you never had the need to use insurance but only than would you recognize it's real need and understand how it all adds up!

What business isn't raping us out here? we pay a lot for almost everything as compared to our neighbours.

I thinks it's best to live out in a jungle!

what, you mean like someone who pays $25,000 in auto insurance premiums over 20 years with no claims. Then, they have an accident and have a $10,000 claim. Then the company raises the guys rates for 5 years. LOL. Sickening.

**VifferFun** · 05-09-2009, 06:35 PM

Originally Posted by kellen

what, you mean like someone who pays $25,000 in auto insurance premiums over 20 years with no claims. Then, they have an accident and have a $10,000 claim. Then the company raises the guys rates for 5 years. LOL. Sickening.

The rates would increase not to re-coup on the $10K, but because that person is now considered to be a higher risk for a future claim. The $10K claims are peanuts, but if we now believe that their chances of making a $500K claims has substantially increased, then we must charge accordingly.

With a perfect credit history, would you be happy to know that some other guy who declared bankruptcy last year can get the same mortgage rate as you? The same concept applies to insurance.

**VifferFun** · 05-09-2009, 06:41 PM

Originally Posted by mat2312

I do understand that in order to drive, one must pay but it is up to GOVERNMENT to ensure there is ethical pricing which you must admit they haven't done to the best of their ability.

The government is actively involved in regulating the insurance industry. We must explain EVERY little move we make and get approval from their actuaries first.

I don't think anyone has a problem with obtaining insurance on their vehicle, the concern is that for something that is mandated by law, it shouldn't be up to a PRIVATE FOR PROFIT company to provide. I'm talking the base liability here, add-ons such as collision/comprehensive I consider to be like purchasing House/Life insurance, they're covering your asset.

Governement insurance is almost always subsidized by tax dollars. Also, it is not as cheap as you think. My company writes the optional coverages in Government-insured provinces and we are significantly cheaper. People THINK government insurance is cheaper, because what are they comparing against? Saskatchewan? Manitoba? Do you really think these provinces have the same claims experience as our lawyer-friendly province of Ontario? I think not.

It sounds like you are arguing that government-run operations are more efficient than the free market. When was the last time you met a hard-working government employee?

Part of the problem is our court system needs to stop handing out huge judgements to people who are involved in car accidents, people need to stop milking the system. It's an endless cycle, people feel they're being ripped by the insurnace company so when it's time to make a claim they gouge them, the insurnace company seeks high claims so they gouge the people!

I totally agree. Although people are not getting ripped off, I can totally understand why they think they are. Since people don't understand what their pink slip REALLY represents, they think it is pure profit for the insurance companies. You are completely right that people will try and take the insurance company to the cleaners in an attempt to get even. We don't charge high premiums to "gouge" but to keep us from going broke. If there was a way of limiting the awards of an insurance policy, you can bet you would see dramatic premium reductions. The problem is beyond the control of insurance companies . . . it is a problem of Ontario law and our greedy-lawyer-loving society.

**kellen** · 05-09-2009, 06:50 PM

Originally Posted by VifferFun

The rates would increase not to re-coup on the $10K, but because that person is now considered to be a higher risk for a future claim. The $10K claims are peanuts, but if we now believe that their chances of making a $500K claims has substantially increased, then we must charge accordingly.

With a perfect credit history, would you be happy to know that some other guy who declared bankruptcy last year can get the same mortgage rate as you? The same concept applies to insurance.

one accident in the 20th year of driving. adjust rate accordingly. lol, ok.

**VifferFun** · 05-09-2009, 06:57 PM

Originally Posted by kellen

one accident in the 20th year of driving. adjust rate accordingly. lol, ok.

Most companies have accident forgiveness for people such as this, so their rate wouldn't be affected anyways. I believe State Farm has such a system in place after you have been claims free for X years. We do understand that good drivers have bad luck every once in a while.

**GS500** · 05-12-2009, 09:06 PM

Originally Posted by VifferFun

Most companies have accident forgiveness for people such as this, so their rate wouldn't be affected anyways. I believe State Farm has such a system in place after you have been claims free for X years. We do understand that good drivers have bad luck every once in a while.

Who is we ?

**Avi Singh** · 05-12-2009, 09:41 PM

Originally Posted by GS500

Who is we ?

Viffer and the rest of his Cosa Nostra buddies. lol.

**VifferFun** · 05-12-2009, 10:22 PM

Originally Posted by GS500

Who is we ?

"We" meaning the actuaries who set the insurance rates.

**Insurance-Broker** · 05-12-2009, 10:43 PM

Originally Posted by VifferFun

Most companies have accident forgiveness for people such as this, so their rate wouldn't be affected anyways. I believe State Farm has such a system in place after you have been claims free for X years. We do understand that good drivers have bad luck every once in a while.

State Farm will rate for the accident. They use a different rating system. Anyone without any accidents or tickets is placed in their "A" plan as long as they have been licenced for 5 years and the rest fall under a "B" plan with star rating ranging from 1-3.

You can't even buy "Accident protection waiver"!

**Insurance-Broker** · 05-12-2009, 10:52 PM

Originally Posted by kellen

what, you mean like someone who pays $25,000 in auto insurance premiums over 20 years with no claims. Then, they have an accident and have a $10,000 claim. Then the company raises the guys rates for 5 years. LOL. Sickening.

Insurance company would look at your most recent history (3-6 years). Your annual insurance premium is just that, Annual!

This is not a savings account that you can withdraw from at the time of need. You pay for 1 year and are covered for whatever happens in that year, period!

Defendent: But you'r honor, I never stole anything in my past 20 years so why are you convicting me for this one time? I think I deserve a break since I have been paying my taxes for 20 years!

**Avi Singh** · 05-12-2009, 10:58 PM

Originally Posted by Insurance-Broker

State Farm will rate for the accident. They use a different rating system. Anyone without any accidents or tickets is placed in their "A" plan as long as they have been licenced for 5 years and the rest fall under a "B" plan with star rating ranging from 1-3.

You can't even buy "Accident protection waiver"!

How do you know so much about State Farm? Are you licensed to sell for them? Or have you ever been?

**VifferFun** · 05-12-2009, 11:52 PM

Originally Posted by Insurance-Broker

You can't even buy "Accident protection waiver"!

From what I gathered, Accident Forgiveness automatically kicks in after you have been a claims-free customer for a number of years. You can't buy the protection, but you can earn it, no?