APP - Insurance Question

[Teflon Don]

Here is something for everyone to noodle (well everyone except my thread bans)

Let's say you are applying for auto insurance. You have a stellar driving record. You have driven for 15 years. Never gotten a ticket and never gotten in an accident.

Now let's say your neighbor is also applying for auto insurance. He has been driving for 15 years and has five speeding tickets and two accidents.

Question: Should your neighbor pay a higher auto insurance premium than you? If so why? If not, why not?



Next question.

Let's say you own a house on a hill and have never had a homeowners claim. You don't live in a flood zone or a tornado area and never had a mud slide. Should you pay a lower homeowners premium than your brother who lives in New Orleans in a flood zone? If yes, why? If no, why not?


Thanks

 

[Jarod]

The question does not have an absolute answer. On one hand, you should be rewarded for being less of a risk to the insurance company. On the other hand if you allow the insurance companies to faction out too much of the risk, you defeat the purpose of insurance which is shared risk.

A great example is how the insurance companies acted after Florida got hit with a series of hurricanes. The insurance companies tried to factor out all of the risk. They tried to back out of insuring anyone who had a reasonable chance of being affected by a hurricane, while continuing to insure those who had very little risk.

ITs the same thing with health insurance, but even more diabolical. If you factor out all with a realistic risk of developing health risks... the result is a burden on the Taxpayer because the Government is not going to allow people to die on the street of diseases that are curable. We allowed the insurance companies to factor out risk so much in the past that it became impossible for a reasonably healthy person to afford health insurance unless he was in a group policy (something that is not possible for everyone, especially for people who are a big health risk). The result was a domino affect causing increasing increased numbers of uninsured resulting in a system that caused excess inflation to pay for the uninsured who were going to get the treatment anyway.

The answer is to regulate the insurance industry so that we have a functioning insurance system in this country. But there is a balance, the answer is not to go too far in any one direction.

 

[Yoda]

Depends on alot of factors, married/single and Credit Score. Yes your credit score effects your auto insurance premium, Why? because the scumbags get away with it.

 

[Teflon Don]

The question does not have an absolute answer. On one hand, you should be rewarded for being less of a risk to the insurance company. On the other hand if you allow the insurance companies to faction out too much of the risk, you defeat the purpose of insurance which is shared risk.

A great example is how the insurance companies acted after Florida got hit with a series of hurricanes. The insurance companies tried to factor out all of the risk. They tried to back out of insuring anyone who had a reasonable chance of being affected by a hurricane, while continuing to insure those who had very little risk.

ITs the same thing with health insurance, but even more diabolical. If you factor out all with a realistic risk of developing health risks... the result is a burden on the Taxpayer because the Government is not going to allow people to die on the street of diseases that are curable. We allowed the insurance companies to factor out risk so much in the past that it became impossible for a reasonably healthy person to afford health insurance unless he was in a group policy (something that is not possible for everyone, especially for people who are a big health risk). The result was a domino affect causing increasing increased numbers of uninsured resulting in a system that caused excess inflation to pay for the uninsured who were going to get the treatment anyway.

The answer is to regulate the insurance industry so that we have a functioning insurance system in this country. But there is a balance, the answer is not to go too far in any one direction.

No surprise that you don't understand insurance and more importantly risk. Not surprising that you think insurance is unregulated.

Is your ignorance willful or just happenstance?

 

[Yoda]

No surprise that you don't understand insurance and more importantly risk. Not surprising that you think insurance is unregulated.

Is your ignorance willful or just happenstance?

What does credit score have to do with auto insurance risk, whether you will pay your premium or not ? bullshit you pay it upfront

 

[Jarod]

No surprise that you don't understand insurance and more importantly risk. Not surprising that you think insurance is unregulated.

Is your ignorance willful or just happenstance?

I said its not regulated?

 

[Damocles]

I wonder when we'll get life insurance equity? Make those women pay more so we can all have the exact same premiums regardless of actuarial tables... It will save men so much money! The War on Men is undercovered by the MSM... if you like your life insurance policy you can keep it, period. I solemnly make an Obamapromise... Which is as good as fiat currency in your bank account.

<- for those with broken sarcasm detectors, this indicates that there is some sarcasm in the post above. See if you can spot it!

 

[Celticguy]

Buy your auto AND homeowners from the same outfit, get a break. If the company you are seeking quotes from has too many other customers sharing your risk (lets just call it proximity) you dont get as low a quote and if your neighbor's outfit has too few he could get favorable impact. Or your agent is less willing to take money out of his pocket (discounts) than neighbor's agent.... get the idea ? It pays to shop around, and with people not websites. Of course you subject yourself to needing to go through this process frequently as what they give up this year they may just decide to 3ecoup next year. Ive had the same car/homeowners for decades and get longevity discounts as a result that profoundly beat everyone else. Policies are better too. Had features no longer offered. But you validate periodically just to see if things have changed.

 

[Yoda]

Buy your auto AND homeowners from the same outfit, get a break. If the company you are seeking quotes from has too many other customers sharing your risk (lets just call it proximity) you dont get as low a quote and if your neighbor's outfit has too few he could get favorable impact. Or your agent is less willing to take money out of his pocket (discounts) than neighbor's agent.... get the idea ? It pays to shop around, and with people not websites. Of course you subject yourself to needing to go through this process frequently as what they give up this year they may just decide to 3ecoup next year. Ive had the same car/homeowners for decades and get longevity discounts as a result that profoundly beat everyone else. Policies are better too. Had features no longer offered. But you validate periodically just to see if things have changed.

My neighbor same age same circumstances except my credit score is much higher because of income we have the same insurance agent he pays 360 a yr more for auto, home and hurricane, the agent says there is nothing she can do to change it.

 

[Celticguy]

My neighbor same age same circumstances except my credit score is much higher because of income we have the same insurance agent he pays 360 a yr more for auto, home and hurricane, the agent says there is nothing she can do to change it.

Would you expect them to say otherwise ? As a hypothetical, he drops coverage with your agent what are the chances your agent discovers a break ? This may be an instance of too many policies in an at risk area as you mention hurricane. Sales is a funny business and built on lies. Sounds bad but there is no getting around it.

 

[Althea]

Here is something for everyone to noodle (well everyone except my thread bans)

Let's say you are applying for auto insurance. You have a stellar driving record. You have driven for 15 years. Never gotten a ticket and never gotten in an accident.

Now let's say your neighbor is also applying for auto insurance. He has been driving for 15 years and has five speeding tickets and two accidents.

Question: Should your neighbor pay a higher auto insurance premium than you? If so why? If not, why not?



Next question.

Let's say you own a house on a hill and have never had a homeowners claim. You don't live in a flood zone or a tornado area and never had a mud slide. Should you pay a lower homeowners premium than your brother who lives in New Orleans in a flood zone? If yes, why? If no, why not?


Thanks

Typically, those with a lot of claims get put into the assigned risk pool. That would automatically make their premiums higher than yours. However, your location will make your premiums more/less than a town/county a few miles away, if your region has a lot of claims.

My area has a 2/3 population increase in the summer...bringing the worst drivers to my region. Our rates are sky high, but there are those who get raped less than others, because of the factors you mention.

 

[Yoda]

Would you expect them to say otherwise ? As a hypothetical, he drops coverage with your agent what are the chances your agent discovers a break ? This may be an instance of too many policies in an at risk area as you mention hurricane. Sales is a funny business and built on lies. Sounds bad but there is no getting around it.

The too many policies theory is moot in this instance, I got my insurance with his agent based on his recommendation, so he got his rate prior to me.

 

[Teflon Don]

My neighbor same age same circumstances except my credit score is much higher because of income we have the same insurance agent he pays 360 a yr more for auto, home and hurricane, the agent says there is nothing she can do to change it.

You could pay it for him if you feel so heartbroken about it in the interest of income equality. Set an example