Well, the market has been down, so you have to expect them to charge more. One of the largest profits they ever had was the year Katrina and Rita caused tens of billions in claims.

Insurance companies are the modern-day mafia.

What we need is a way for the common man to reduce the risk of incurring costly insurance premiums by pooling their money with many others, then allowing that collection of monies to pay out to individuals who are in need. "Shared risk" we'd call it, or indemnification, assurance...well we'll work on the name later.

timujin: Here's a quick rundown for those of you surprised by this:

Issue ------------------------------------- Response
-------------------------------------------------------------
Insurance claims are up -------------- Raise rates
Insurance claims are down ---------- Raise rates
Future claims look positive ---------- Raise rates
Future claims look negative --------- Raise rates
A bee farted in Indiana --------------- Raise rates
Rates have been raised ------------- Raise rates

to be fair, if a bee farts in Indiana Ashton Kutchner makes another movie.

All the more reason to nationalize all insurance companies.
To stop this from happening.
For health insurance, so people can see the doctor without going bankrupt.
For auto insurance, so I don't have to see another Progressive Commercial with that annoying ass woman.

This is all the fault of the NWS. If they hadn't put the fear of God in everyone along the eastern seaboard, we wouldn't even be discussing this. Just one more reason that certain government "programs" need the axe in these hard times.

Sergeant Grumbles: All the more reason to nationalize all insurance companies.
To stop this from happening.
For health insurance, so people can see the doctor without going bankrupt.
For auto insurance, so I don't have to see another Progressive Commercial with that annoying ass woman.

What about another Government Employees Indemnity Corporation commercial?

hurdboy: I'm on hold with my insurance company right now, so I'm getting a kick, etc.

But not as much of a kick as when I finally open the fridge....

I'm putting that one off until I can get a couple of fans running off a neighbor's outlet. It's starting to smell like my bathroom after Indian food.

Sergeant Grumbles: All the more reason to nationalize all insurance companies.
To stop this from happening.
For health insurance, so people can see the doctor without going bankrupt.
For auto insurance, so I don't have to see another Progressive Commercial with that annoying ass woman.

For auto insurance especially. My car insurance rates have gone up every year for the last 5 years DESPITE having an immaculate driving record each and every time it went up.

erupt2001: For auto insurance especially. My car insurance rates have gone up every year for the last 5 years DESPITE having an immaculate driving record each and every time it went up.


Insurance companies take your premiums and put them into various forms of investments to earn interest or appreciate in value. Because, let's face it, the amount you pay for insurance doesn't come within a mile of what you're able to recoup from the insurance company. However, with interest rates in the toilet since the housing crisis began and with a stock market in such shiatty shape the companies are, at best, earning next to nil on their investments or (more likely) losing money. This is aside from the fact that claims are being filed on a consistent basis which places a drain on their cash reserves.

So the companies raise their rates. They more or less have to since (per state regulations) they have to maintain a certain ratio of cash reserves to outstanding liabilities.

I don't get insurance on anything. I drive slow and live where everyone does the same, live in a trailer, don't have a cellphone, and my life isn't worth getting insurance yet. Anything I have that is tangible is in a concrete storage cellar in the back yard. Insurance-necessity is a similar to that of people saying you need to "know Jesus" to get in heaven. Ya know, JUST IN CASE there is a heaven.

The Stealth Hippopotamus: Well I'm sure the Insurance Companies had the same reaction that most New Yorkers did, "Holy S$%# that can happen here?!". For years they were collecting dues without any fear of paying out. Now? Not so much.

Waiting for the myriad stories about people getting farked because they had no flood insurance or the wrong kind of flood insurance.

As an aside: over/under on how many morons in Virginia they convince to buy earthquake insurance?

Le French Boo: I don't get insurance on anything. I drive slow and live where everyone does the same, live in a trailer, don't have a cellphone, and my life isn't worth getting insurance yet. Anything I have that is tangible is in a concrete storage cellar in the back yard. Insurance-necessity is a similar to that of people saying you need to "know Jesus" to get in heaven. Ya know, JUST IN CASE there is a heaven.

You are risking a lot by not having at least some auto liability coverage. Not only is it illegal to drive without insurance, but you are one accident away from bankruptcy. And you do not want to enter bankruptcy.

justinguarini4ever: And you do not want to enter bankruptcy.

If you have nothing to lose but your credit rating, you have nothing to fear.
I'd gladly destroy my credit forever if it got rid of my student loans. Good credit won't get me anything if I never have anything left to spend, and a hefty down-payment can overcome bad credit.

Le French Boo: I don't get insurance on anything. I drive slow and live where everyone does the same, live in a trailer, don't have a cellphone, and my life isn't worth getting insurance yet. Anything I have that is tangible is in a concrete storage cellar in the back yard. Insurance-necessity is a similar to that of people saying you need to "know Jesus" to get in heaven. Ya know, JUST IN CASE there is a heaven.


Unless someone does something dumb and hits you. Since you don't have an insurance carrier you don't have a company that is obligated (per the insurance coverage) to provide you with legal counsel in order to make sure that you are reimbursed for the damage caused. Basically the insurance carrier for the car that hit you can tell you to fark off and die. Additionally, the other party can sue you and claim that you are the party at fault for the accident which you'd be protected against if you had liability coverage but in the end this route could allow the insurance carrier from the other driver to recoup their loss and expenses (paid to their insured) from you.

Sergeant Grumbles: All the more reason to nationalize all insurance companies.
To stop this from happening.
For health insurance, so people can see the doctor without going bankrupt.
For auto insurance, so I don't have to see another Progressive Commercial with that annoying ass woman.

Sure it would be, don't let the facts get in the way of good rant there, chief...

Sergeant Grumbles: If you have nothing to lose but your credit rating, you have nothing to fear.
I'd gladly destroy my credit forever if it got rid of my student loans. Good credit won't get me anything if I never have anything left to spend, and a hefty down-payment can overcome bad credit.


That may be true...ten years from now. However a hefty down-payment won't save you if you are a renter or applying for a job, both of which pull credit reports. And this assumes you can pass the Chapter 7 means test...otherwise you'll get shunted into Chapter 13 where you'll be ordered to participate in a five-year repayment plan. Then there's the mandatory financial education you must go through.

Ken VeryBigLiar: Sure it would be, don't let the facts get in the way of good rant there, chief...

Those facts being?
SOCIALISM = BAD doesn't count.

Devin172: erupt2001: For auto insurance especially. My car insurance rates have gone up every year for the last 5 years DESPITE having an immaculate driving record each and every time it went up.


Insurance companies take your premiums and put them into various forms of investments to earn interest or appreciate in value. Because, let's face it, the amount you pay for insurance doesn't come within a mile of what you're able to recoup from the insurance company. However, with interest rates in the toilet since the housing crisis began and with a stock market in such shiatty shape the companies are, at best, earning next to nil on their investments or (more likely) losing money. This is aside from the fact that claims are being filed on a consistent basis which places a drain on their cash reserves.

So the companies raise their rates. They more or less have to since (per state regulations) they have to maintain a certain ratio of cash reserves to outstanding liabilities.

I thought they use the payments of others to pay off the claims of some? In any case if I make payments on flood insurance for 10yrs without a claim and then get flooded and my rates go up because they had to pay out then I can be upset that they didn't lower my rates the 10yrs I paid without a claim.

Why would I care that how insurance company invests the money? I dont think they care why I do with my money as long as they get paid on time...

Devin172: erupt2001: For auto insurance especially. My car insurance rates have gone up every year for the last 5 years DESPITE having an immaculate driving record each and every time it went up.


Insurance companies take your premiums and put them into various forms of investments to earn interest or appreciate in value. Because, let's face it, the amount you pay for insurance doesn't come within a mile of what you're able to recoup from the insurance company. However, with interest rates in the toilet since the housing crisis began and with a stock market in such shiatty shape the companies are, at best, earning next to nil on their investments or (more likely) losing money. This is aside from the fact that claims are being filed on a consistent basis which places a drain on their cash reserves.

So the companies raise their rates. They more or less have to since (per state regulations) they have to maintain a certain ratio of cash reserves to outstanding liabilities.

That makes sense up to the part when you realize that it's costing less to fix your vehicle, or more to the point, the costs to cover damage are rising but the value of the vehicle is depreciating (i.e., the asset is depreciating so the "value" that they're responsible to compensate you for is less).

Got a 20% increase from MetLife for my next bill (and nearly 0 discount for bundling homeowners insurance, etc.). Guess what? I'm comparing prices right now to jump ship.

Here's the flip side to the beloved model of capitalism which so many companies seem to abuse... unless you're the only game in town, people with an IQ above room temperature will leave you for another company that provides the same or better service at a lower cost.

gameshowhost: Markets are excellent for allocating private goods/services, but terrible for allocating public goods/services.

I agree with you. Just probably not on the nature of insurance being private/public depending on what is being insured. Care to discuss why you think auto insurance would be economically inefficient?
I was really just trying to make a jab at that Progressive biatch, because I hate her, than any genuine dislike for the industry, but it might make for an interesting conversation.

timujin: Here's a quick rundown for those of you surprised by this:

Issue ------------------------------------- Response
-------------------------------------------------------------
Insurance claims are up -------------- Raise rates
Insurance claims are down ---------- Raise rates
Future claims look positive ---------- Raise rates
Future claims look negative --------- Raise rates
A bee farted in Indiana --------------- Raise rates
Rates have been raised ------------- Raise rates

wait a minute .... are you telling me I purchased that extra "bee fart" coverage for NOTHING ?!?!?!?!!? god I feel ripped off !!!

As soon as my mortgage is paid off, I am dropping my homeowners coverage.

Sergeant Grumbles: Those facts being?
SOCIALISM = BAD doesn't count.

Aside from the fact that the states have been trusted to run their own ship since the end of WWII and have done a fairly good job? Or that we can't get state-to-state agreement in statutes on auto negligence? Or that there are still 4 states where you have to purchase Work Comp from the state, about 30 that are pooled together in NCCI and the rest have their own bureaus? Or that we'd get FEMA-level incompetence for each and every CAT claim? Or that you would be paying for nationalization of losses so all of your money would be going to the the coasts?

/Socialism? I'm no farkin' troll
//Unless they're Chiefs fans...

Ken VeryBigLiar: Sergeant Grumbles: Those facts being?
SOCIALISM = BAD doesn't count.

Aside from the fact that the states have been trusted to run their own ship since the end of WWII and have done a fairly good job? Or that we can't get state-to-state agreement in statutes on auto negligence? Or that there are still 4 states where you have to purchase Work Comp from the state, about 30 that are pooled together in NCCI and the rest have their own bureaus? Or that we'd get FEMA-level incompetence for each and every CAT claim? Or that you would be paying for nationalization of losses so all of your money would be going to the the coasts?

/Socialism? I'm no farkin' troll
//Unless they're Chiefs fans...

Someone needs to look at where the majority of federal money goes.

Sergeant Grumbles: justinguarini4ever: And you do not want to enter bankruptcy.

If you have nothing to lose but your credit rating, you have nothing to fear.
I'd gladly destroy my credit forever if it got rid of my student loans. Good credit won't get me anything if I never have anything left to spend, and a hefty down-payment can overcome bad credit.

Hey, you sound like a member of the Party of Responsibility.

Who do you think absorbs those student loans if you don't pay them, asshole!
If you didn't want to pay them back, poor baby, maybe you shouldn't have taken out student loans. Maybe, just maybe, you could have been all bootstrappy and worked your way through school.

Pick: As soon as my mortgage is paid off, I am dropping my homeowners coverage.

Wow that would be dumb. You know you can shop around and get lower rates as well as raising your deductible to lower the cost of the policy?

If you don't have enough money to pay cash for the property you don't have enough money to go coverage free on catastrophe.

PablitoRun: Pick: As soon as my mortgage is paid off, I am dropping my homeowners coverage.

Wow that would be dumb. You know you can shop around and get lower rates as well as raising your deductible to lower the cost of the policy?

If you don't have enough money to pay cash for the property you don't have enough money to go coverage free on catastrophe.

If I saw his/her profile right; they're in Florida. There is no good option; only without lube or with a 2x6.

kingoomieiii: Le French Boo: I don't get insurance on anything. I drive slow and live where everyone does the same, live in a trailer, don't have a cellphone, and my life isn't worth getting insurance yet. Anything I have that is tangible is in a concrete storage cellar in the back yard. Insurance-necessity is a similar to that of people saying you need to "know Jesus" to get in heaven. Ya know, JUST IN CASE there is a heaven.

I'm sorry, but it's stupid to not have health insurance. Last year, I went from perfectly healthy, to needing $50,000 of medical care, in two days. No injury- my intestines decided to go insane.

Without insurance, I'd be A) Broke for the next few decades or B) Dead.

Welcome to America. Because according the fark independents, your bootstraps could have been used to replace your intestines.

Clearly this means we should deregulate insurance companies as much as possible. CAPITALISM!

Are insurance company offices insured?

subby, excellent use of trolling headline. 9/10.

farktards who DRTFA or didn't understand it, no insurance company said this, it was said by an analyst at Morgan Stanley about what he thought could happen.

besides, of course rates would go up after a disaster. The fact that the storm wasn't as bad as the Global Warming Nuts warned, just means that the rates wouldn't go up as much as a big storm would warrant.

erupt2001:

For auto insurance especially. My car insurance rates have gone up every year for the last 5 years DESPITE having an immaculate driving record each and every time it went up.

somebody has to pay for the damages caused by illegal immigrants and other non-insured drivers. Thank you!

Sergeant Grumbles: All the more reason to nationalize all insurance companies.
.

because the government has a great track record of running insurance programs.

just wait for it, declining benefits, means testing when you have an accident and a bunch of IOUs instead of assets backing the program.

protectyourlimbs: I thought they use the payments of others to pay off the claims of some? In any case if I make payments on flood insurance for 10yrs without a claim and then get flooded and my rates go up because they had to pay out then I can be upset that they didn't lower my rates the 10yrs I paid without a claim.


In part yes but in part no. The premiums you pay are in exchange for the coverage they are obligated to provide according to their calculations of the risk you present. However, what do you think happens to the money you pay? Where do you think they put it? Insurance companies, along with pension funds, and mutual funds are one of the largest investors. They take the cash you give them and they invest it in a wide variety of ways.


Why would I care that how insurance company invests the money? I dont think they care why I do with my money as long as they get paid on time...


If the stock market is highly volatile and interest rates remain near nil while large and numerous catastrophes continue to provide drains on their financial resources insurance companies are going to rely more and more on their premium collections to meet claims payments. State Farm, for instance, could deal with the fact that homeowners losses in Florida were $1.21 per $1.00 of premium collected since their investment income was doing so well. That's not the case at the moment.

tenpoundsofcheese: The fact that the storm wasn't as bad as the Global Warming Nuts warned,

Nice troll.

The storm wasn't as bad because it went inland over NC for several hours. If it had stayed in the ocean it would have been much worse for the Mid Atlantic and Northeast, and our forecasting technology isn't good enough to determine something that specific as that until it's too late to prepare.