Car insurance - the greatest scam ever

  • dannyboy1101

    Posts: 977

    Jun 07, 2011 10:59 PM GMT
    How much do you pay per year for your car insurance? I know that different cities have different rates so there will be great variety but I can't help but think I'm getting screwed in Chicago (which is nice cuz we have the most expensive gas, too). Sadly there is no way at this time I can ditch the car, but I dream of it for the future. So it's time to shop away. Any companies to avoid? Which company do you use and how much do you pay per year?
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    Jun 07, 2011 11:08 PM GMT
    $450 for a whole year with State Farm...this from someone who has an almost new CR-V and drives only 3500 miles a year, with no accidents in 25 years, living in a small city, and have multiple products from State Farm, and who's not in the highest risk age group any more! icon_lol.gif
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    Jun 08, 2011 2:48 AM GMT
    $1320 per year for an 09 Ranger 4x4. of course this is in Canada, and there is only one insurance company in the province, the government one, so i think im the one getting screwed. Oh and gas is the equivalent of $5.10 per gallon here right now, which is better then the $5.60 per gallon it was a few weeks ago. least ur not my dad, where its $4000 dollars per year for his truck.
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    Jun 08, 2011 2:53 AM GMT
    $460/6 mos in Texas

    Seems reasonable to me
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    Jun 08, 2011 3:01 AM GMT
    Car ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.
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    Jun 08, 2011 3:17 AM GMT
    Register your car in a different state. Plenty of cars here in CA with Nevada and Oregon plates. icon_biggrin.gif

    If anyone in your family is in the military, see if you can get a policy through USAA. I heard their rates are really really cheap.

    Also, I might add that single men get screwed the most on car insurance. I haven't had a ticket of any kind in the past 15+ years. But I pay twice the premium, compared to a friend of mine.. who is straight, married, rents, lives in a so-so neighborhood, and drives a more expensive car.
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    Jun 08, 2011 3:22 AM GMT
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    so basically you're a proven risky driver, and you're complaining about insurance companies charging you based on that assessed risk...
  • calibro

    Posts: 8888

    Jun 08, 2011 3:29 AM GMT
    atl2atx85 said
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    so basically you're a proven risky driver, and you're complaining about insurance companies charging you based on that assessed risk...


    WIN!!!1! (and you're cute)
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    Jun 08, 2011 3:32 AM GMT
    atl2atx85 said
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    so basically you're a proven risky driver, and you're complaining about insurance companies charging you based on that assessed risk...


    Good thing you quoted me, otherwise I wouldve thought I blacked out and posted something other than what I did. I see no complaints, but if thats what you deduced, go right ahead and think that, chang.

    I simply said it was a ripoff. Long as Im able to pay it, and its req by law, I'll pay it. Small price to pay for having a nice car and not some tin car econo car or familyman sedan.
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    Jun 08, 2011 3:36 AM GMT
    Builtsoon said
    atl2atx85 said
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    so basically you're a proven risky driver, and you're complaining about insurance companies charging you based on that assessed risk...


    Good thing you quoted me, otherwise I wouldve thought I blacked out and posted something other than what I did. I see no complaints, but if thats what you deduced, go right ahead and think that, chang.

    I simply said it was a ripoff. Long as Im able to pay it, and its req by law, I'll pay it. Small price to pay for having a nice car and not some tin car econo car or familyman sedan.


    i apologize if i misinterpreted what you wrote. i assumed that by calling it a ripoff, you meant it as a complaint/rant.
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    Jun 08, 2011 3:37 AM GMT
    calibro said
    atl2atx85 said
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    so basically you're a proven risky driver, and you're complaining about insurance companies charging you based on that assessed risk...


    WIN!!!1! (and you're cute)


    thanks icon_smile.gif
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    Jun 08, 2011 3:41 AM GMT
    I'm an independent insurance agent in NC so I'll try explain some of the factors that make up insurance rates. Each state regulates insurance for their citizens and state laws can determine how expensive auto insurance is along with a host of other factors, such as driver experience including driving history, vehicle repairability, and statistical info developed by actuaries. The rates in NC are set by the NC Rate Bureau which is 1 of only 2 states that have a "bureau" that sets rates. The rate bureau operates under the jurisdiction of the Dept of Insurance. We are a Tort Liability state, which means if I rear end you and I'm at fault, you are looking for me or my insurance to indemnify or make you whole again.
    The state requires all drivers to have auto insurance or be able to post a bond which would indemnify those who were wronged. Some argue the rate bureau should be dissolved and the free market would find the appropriate rates. Others argue if the rate bureau is dissolved rates for everyone would go up.
    It is not mandatory in some states to have auto insurance. I believe FL may be one of them. I believe they have no fault insurance to a certain threshold, at which point, tort liability takes effect. You guys from FL would know that better than I would.
    So all of you people who think auto insurance is a scam, would you be willing to risk all that you have to drive around with no liability/ physical damage insurance? And since if there were no one else with insurance out there would you be comfortable with them giving you an IOU if they T-boned you and destroyed your new car and sent you to the hospital? What would be a better, cheaper alternative?
    One thing insurance companies are looking at is a GPS system that would set rates based on mileage and driving habits. The system can tell if you've been naughty or nice on the highway. It'll be here soon.
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    Jun 08, 2011 3:44 AM GMT
    atl2atx85 said
    Builtsoon said
    atl2atx85 said
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    so basically you're a proven risky driver, and you're complaining about insurance companies charging you based on that assessed risk...


    Good thing you quoted me, otherwise I wouldve thought I blacked out and posted something other than what I did. I see no complaints, but if thats what you deduced, go right ahead and think that, chang.

    I simply said it was a ripoff. Long as Im able to pay it, and its req by law, I'll pay it. Small price to pay for having a nice car and not some tin car econo car or familyman sedan.


    i apologize if i misinterpreted what you wrote. i assumed that by calling it a ripoff, you meant it as a complaint/rant.


    No worries. Believe me my rants and complaints leave no doubt that Im ranting and complaining. ;)
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    Jun 08, 2011 3:57 AM GMT
    Builtsoon saidCar ins is a ripoff everywhere. I pay $4k a year on an oh-six G35 coupe, but I also have a wreck and a speeding ticket and a bullshit 'aggressive manuevering' (technical term for getting caught crossing two lanes and cutting off a driver) ticket on my record.


    The first two and the fact that you're 21 is definitely going to do it.

    Although that's a nice ride.
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    Jun 08, 2011 3:59 AM GMT
    funbud8 saidI'm an independent insurance agent in NC so I'll try explain some of the factors that make up insurance rates. Each state regulates insurance for their citizens and state laws can determine how expensive auto insurance is along with a host of other factors, such as driver experience including driving history, vehicle repairability, and statistical info developed by actuaries. The rates in NC are set by the NC Rate Bureau which is 1 of only 2 states that have a "bureau" that sets rates. The rate bureau operates under the jurisdiction of the Dept of Insurance. We are a Tort Liability state, which means if I rear end you and I'm at fault, you are looking for me or my insurance to indemnify or make you whole again.
    The state requires all drivers to have auto insurance or be able to post a bond which would indemnify those who were wronged. Some argue the rate bureau should be dissolved and the free market would find the appropriate rates. Others argue if the rate bureau is dissolved rates for everyone would go up.
    It is not mandatory in some states to have auto insurance. I believe FL may be one of them. I believe they have no fault insurance to a certain threshold, at which point, tort liability takes effect. You guys from FL would know that better than I would.
    So all of you people who think auto insurance is a scam, would you be willing to risk all that you have to drive around with no liability/ physical damage insurance? And since if there were no one else with insurance out there would you be comfortable with them giving you an IOU if they T-boned you and destroyed your new car and sent you to the hospital? What would be a better, cheaper alternative?
    One thing insurance companies are looking at is a GPS system that would set rates based on mileage and driving habits. The system can tell if you've been naughty or nice on the highway. It'll be here soon.

    Yes, it's scam when your premiums are determined by sex, zip code, credit score, and marital status. I have no problems with paying for insurance. I do have problems when my rates are determined by factors that have nothing to do with the type of car I have or type of driver that I am.
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    Jun 08, 2011 4:06 AM GMT
    As of 2010, here is how your state ranks in the price of car insurance.

    Rank, State, Average Premium
    1 Louisiana $2,510.87
    2 Michigan $2,098.29
    3 Oklahoma $1,869.39
    4 Montana $1,857.96
    5 California $1,774.41
    6 South Dakota $1,772.83
    7 Washington, D.C. $1,753.19
    8 Georgia $1,751.42
    9 Illinois $1,679.15
    10 Connecticut $1,678.90
    11 Arkansas $1,648.80
    12 New Mexico $1,603.65
    13 Rhode Island $1,595.97
    14 West Virginia $1,589.69
    15 Alaska $1,572.21
    16 Wyoming $1,552.98
    17 Maryland $1,550.13
    18 Kansas $1,524.51
    19 Kentucky $1,515.30
    20 Colorado $1,480.97
    21 Mississippi $1,474.94
    22 New Jersey $1,473.73
    23 New York $1,463.21
    24 Texas $1,462.65
    25 Florida $1,453.20
    National $1,429.26
    26 Pennsylvania $1,420.78
    27 Delaware $1,405.80
    28 Missouri $1,390.59
    29 Minnesota $1,381.09
    30 Alabama $1,380.38
    31 North Dakota $1,365.22
    32 Hawaii $1,306.97
    33 Indiana $1,302.51
    34 Nevada $1,282.50
    35 Washington $1,279.84
    36 Utah $1,234.30
    37 Virginia $1,233.36
    38 Nebraska $1,210.74
    39 Oregon $1,194.69
    40 Idaho $1,183.47
    41 South Carolina $1,182.18
    42 Tennessee $1,170.12
    43 Arizona $1,152.50
    44 North Carolina $1,130.45
    45 Massachusetts $1,043.80
    46 Iowa $1,039.04
    47 New Hampshire $1,011.23
    48 Wisconsin $1,010.93
    49 Ohio $999.86
    50 Vermont $968.58
    51 Maine $902.85

    http://blogs.cars.com/kickingtires/2010/04/what-state-has-the-highest-car-insurance.html
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    Jun 08, 2011 4:08 AM GMT
    xrichx said
    Yes, it's scam when your premiums are determined by sex, zip code, credit score, and marital status. I have no problems with paying for insurance. I do have problems when my rates are determined by factors that have nothing to do with the type of car I have or type of driver that I am.


    pretty sure that the type of car you drive does factor into the cost of premiums; and sex, zipcode, credit score and marital status have correlations with the type of driver an individual is

    while it might not fit in with your individual circumstance, the rates have to be looked at in the aggregate, and for the most part, it's pretty spot on.
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    Jun 08, 2011 4:19 AM GMT
    atl2atx85 said
    pretty sure that the type of car you drive does factor into the cost of premiums; and sex, zipcode, credit score and marital status have correlations with the type of driver an individual is

    while it might not fit in with your individual circumstance, the rates have to be looked at in the aggregate, and for the most part, it's pretty spot on.

    Try driving around LA. The soccer moms around here think their SUV is a Ferrari. icon_lol.gif

    Anyways, like I said earlier. My friend pays about half of what I pay. He drives a Porsche, is about 5 years younger than me, and clean driving record. The main difference is that he's married.

    So I wouldn't say that it's spot on. It's a form of stereotyping.
  • dannyboy1101

    Posts: 977

    Jun 08, 2011 4:20 AM GMT
    funbud8 said
    So all of you people who think auto insurance is a scam, would you be willing to risk all that you have to drive around with no liability/ physical damage insurance? And since if there were no one else with insurance out there would you be comfortable with them giving you an IOU if they T-boned you and destroyed your new car and sent you to the hospital? What would be a better, cheaper alternative?
    One thing insurance companies are looking at is a GPS system that would set rates based on mileage and driving habits. The system can tell if you've been naughty or nice on the highway. It'll be here soon.


    Well all I can say is I think these companies are getting insanely rich with the money they take in versus putting out. I'm looking at $1400+ a year driving a Hyundai with only one minor accident 4.5 hrs ago at like 5 mph due to slippery road and no speeding tickets ever. It's ridiculous that I have to pay more cuz straight men like to showboat for their gf's. It's not fair to treat statistics like that. I believe if the same thing is done by police that is called profiling. So why can my insurance company do that legally?

    I would never say that it shouldn't be required but I just think that there's not enough eyes on these companies. It's similar to how gas prices shot up due to issues overseas raising barrel prices yet at the same time these gas stations started installing tvs at the pump. If they are so hard up for cash to get oil then perhaps those tvs could have helped them keep in budget without jacking gas prices
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    Jun 08, 2011 4:22 AM GMT
    Yep the type of car you drive and year of the model definitely influence the cost of the insurance. My 2006 IS250 which i left back in LA is about $470/6mo with state farm for max liability and collision. No ticket or accidents in the last 10yrs, plus being over 30 helps too. It only gets cheaper every year to come. Is it a scam? The good news is when your car gets totaled, its good to have insurance company pay you the value of the car. icon_biggrin.gif
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    Jun 08, 2011 6:46 AM GMT
    Personally I can't wait for the day when we'll have automatic drivers and platoons.

    http://www.economist.com/node/18750696?story_id=18750696
  • MikemikeMike

    Posts: 6932

    Jun 08, 2011 6:48 AM GMT
    Alot depends on the car(s) you drive
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    Jun 08, 2011 7:16 AM GMT
    dannyboy1101 said
    funbud8 said
    So all of you people who think auto insurance is a scam, would you be willing to risk all that you have to drive around with no liability/ physical damage insurance? And since if there were no one else with insurance out there would you be comfortable with them giving you an IOU if they T-boned you and destroyed your new car and sent you to the hospital? What would be a better, cheaper alternative?
    One thing insurance companies are looking at is a GPS system that would set rates based on mileage and driving habits. The system can tell if you've been naughty or nice on the highway. It'll be here soon.


    Well all I can say is I think these companies are getting insanely rich with the money they take in versus putting out. I'm looking at $1400+ a year driving a Hyundai with only one minor accident 4.5 hrs ago at like 5 mph due to slippery road and no speeding tickets ever. It's ridiculous that I have to pay more cuz straight men like to showboat for their gf's. It's not fair to treat statistics like that. I believe if the same thing is done by police that is called profiling. So why can my insurance company do that legally?

    I would never say that it shouldn't be required but I just think that there's not enough eyes on these companies. It's similar to how gas prices shot up due to issues overseas raising barrel prices yet at the same time these gas stations started installing tvs at the pump. If they are so hard up for cash to get oil then perhaps those tvs could have helped them keep in budget without jacking gas prices


    Because you wind up being an economic risk to the company. Solution:



    Something like this. Sorta big brother-ish, but if you're as safe as a driver as you claim, then prepare for your rates to go down.
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    Jun 08, 2011 7:38 AM GMT
    I pay $1200 a year on 3 vehicles an 05 Chevy Colorado,93 S-10 and a 1964 Cadillac here in Indiana.
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    Jun 09, 2011 12:15 AM GMT
    dannyboy1101 said
    funbud8 said
    So all of you people who think auto insurance is a scam, would you be willing to risk all that you have to drive around with no liability/ physical damage insurance? And since if there were no one else with insurance out there would you be comfortable with them giving you an IOU if they T-boned you and destroyed your new car and sent you to the hospital? What would be a better, cheaper alternative?
    One thing insurance companies are looking at is a GPS system that would set rates based on mileage and driving habits. The system can tell if you've been naughty or nice on the highway. It'll be here soon.


    Well all I can say is I think these companies are getting insanely rich with the money they take in versus putting out. I'm looking at $1400+ a year driving a Hyundai with only one minor accident 4.5 hrs ago at like 5 mph due to slippery road and no speeding tickets ever. It's ridiculous that I have to pay more cuz straight men like to showboat for their gf's. It's not fair to treat statistics like that. I believe if the same thing is done by police that is called profiling. So why can my insurance company do that legally?

    I would never say that it shouldn't be required but I just think that there's not enough eyes on these companies. It's similar to how gas prices shot up due to issues overseas raising barrel prices yet at the same time these gas stations started installing tvs at the pump. If they are so hard up for cash to get oil then perhaps those tvs could have helped them keep in budget without jacking gas prices


    So if they are getting so insanely rich as you think they are, why hasn't your stock broker advised you to go out and buy huge chunks of Allstate Insurance stock? or any other insurance stock?
    Have you checked out Erie Insurance? They have something called Rate Protection Endorsement that guarantees your rate wont change except for 3 reasons. 1) you move 2) you buy another vehicle and 3) you add a driver...
    so you can have all the speeding tix and accidents you want, just dont do 1 of the above 3 things...The insurance business is very competitive. There's no fat in the rates. If there was, another company will eat their lunch, or they won't be writing much auto insurance