Insurance - Be careful - A claim is a claim - nothing is free

[Tom]

The insurance business has been a banking/investment business for as long as I remember. It was the same in the olde country.

The folks who do the witchcraft/statistical analysis/premium determination are 'actuaries'.

One of the factors in their equations, especially for younger drivers, is educational history and grades. A relative's friend recently purchased insurance for her daughter, at a very high premium. When the relative stepped in, he had the insurer re-quote, given the straight-A's student with an educational scholarship to university; The premium dropped significantly.

When we stepped off the plane from the olde country, insurance companies wouldn't recognize our prior 'clean' driving records, and we were charged double the premium. To the insurer, we were a big unknown. After a year, we were classed as "experienced, safe drivers", and the premium halved - automatically (we didn't have to ask).

 

[Lou Schneider]

When we stepped off the plane from the olde country, insurance companies wouldn't recognize our prior 'clean' driving records, and we were charged double the premium. To the insurer, we were a big unknown. After a year, we were classed as "experienced, safe drivers", and the premium halved - automatically (we didn't have to ask).

Makes sense, different traffic laws and patterns, not to mention having to adjust to driving on the "wrong" side of the road. I know I was a less competent driver the first time I rented a car in Australia.

 

[Tom]

Makes sense, different traffic laws and patterns, not to mention having to adjust to driving on the "wrong" side of the road. I know I was a less competent driver the first time I rented a car in Australia.

Good points Lou, although I'd previously driven in CA during multiple visits. But it never came up as a question.

 

[garyb1st]

Insurance companies are just like any other business. They must make a profit. If they don't, their options are to raise rates or stop providing insurance. Sometimes they go bankrupt. Just look at the problems in Florida after the last major storm. Property insurers, the ones that write fire insurance and homeowners policies are in trouble. Same thing happened after the 1994 Quake here in So. Cal. My homeowners insurance company went bankrupt.

Like DonTom said, carry high deductibles. I typically carry a minimum $1000 deductible on my home and vehicles. I also will not submit a claim unless it is considerably more than $1000. Even with the high deductibles, my annual premium for home and auto is close to $4,000. But then that includes Earthquake Insurance. The deductible on that is 15%. In my case just over $70,000. That is based on the approximate replacement cost of the dwelling which is considerably less than market value.

 

[Kodiak34SS]

The extremely low bar to get a license in any US state is part of the issue. When people come over from countries where licensing and traffic regulations are even more lax, there's a real learning curve. You'll see it sometimes...people newly in the US driving for Uber, etc...it's extremely scary to be a passenger and they do get in more accidents compared to their experienced counterparts.

 

[Octodad]

Having worked in the insurance industry for a while I can tell you that one company does not own them all. But through a practice known as reinsurance they do indeed share risks, expenses and data across many companies. This protects consumers as well as the overall insurance industry by spreading claims from natural disasters and such over many companies. The company I worked for specialized in workers comp.

You might be able to find a company that your current carrier doesn't share claims with. Accidents are another matter.

The insurance business made manufacturing and finance look like tinker toys by relative complexity.

They spent a small fortune training me. And then I left. Mostly because of my immediate boss.

A little bit off subject, but surveys have shown that this is the number one reason people leave a job. They can, and do, put up with a lot of other crap at the company, but a bad boss is a killer.

 

[Phil-T]

"Not really. Such things are considered agreements. IOW, if you do not want to buy car insurance, do not drive, etc."

When I was in Nevada in the early 70s, there was no vehicle insurance required.
Not sure if it is still that way today.

 

[DonTom]

When I was in Nevada in the early 70s, there was no vehicle insurance required.
Not sure if it is still that way today.

It's now required in NV and you may not renew a vehicle registration until you can prove you have the lability insurance on each vehicle.

You're also asked to show it when stopped for a traffic violation in NV.

Most of my vehicles are registered in NV. I keep the CA registration when I buy in CA.

-Don- Auburn, CA