My Auto Insurace Premiums INCREASED by 30 percent

[fijiman]

All Insurance companies are thieves.
Loyalty matters little to these crooks.

While I agree with you that loyalty matters little (except as far as it influences profits), its not fair to describe Insurance companies as crooks and thieves.

"Insurance" exists fundamentally to protect us from losses that might be catastrophic otherwise. Apart from a few types of insurance (Auto, etc), most of us freely choose to purchase insurance and are happy to have it when we experience a tragic loss.

Insurance profit margins in a product are heavily regulated (especially in the US). And Insurance companies are widely held stocks, and are frequently a large part of the average Canadian's stock holdings (either directly or via our pension plans, mutual funds, etc)

I guess what I'm saying is that the fundamental purpose of Insurance is to protect widows and orphans. I know it sucks we have to pony up the premiums. But I don't think its fair to call Insurance companies thieves and crooks.

Again, I acknowledge the I work for an insurance company. And again, I say that I work in Reinsurance (so I do to Insurance companies, what they do to you.

 

[Margucci]

All Insurance companies are thieves.
Loyalty matters little to these crooks.

After a few years when my rates would go up .... and they always do, I shop around to others for a better rate and always get one.
You have to shop around when they start 'jacking up' your rates like that.

we live in a capitalist country (and world). it always amazes me when people say things like this and expect it to be any different. until greed is no more and we can form a true communist society (think star trek and the federation) than capitalism is what we have.

 

[90's sc vet]

Got my renewal and my auto premium jumped by 30 percent from last year.

Criminals.

No claims, no tickets, no nothing. Just an increase of 30 percent. Some lame ass letter in there explaining that the cost for insuring the "replacement cost" of my car has increased.

I called my insurance company (TD Meloche Monnex) and they basically said "too bad, so sad"

Increased my deductible from 500 to 1,000 and that saved me all of 80 bucks a year.

This is after Monnex basically doubled the cost of my home insurance over the last 3 years.

Needless to say, I'm going to be doing some serious shopping around in the next week or so.

The same thing happened to me last year, with the same insurance company, TD Meloche Monnex. Same explanation.

From 2009 to 2012, my car insurance premium would have doubled. So I found another company where the premium was 45% lower than the Meloche Monnex premium. I switched.

However, my home insurance policy with Meloche hasn't changed at all for the past few years. The home policy with same company that I bought the car insurance from was almost double the Meloche premium. Go figure.

There was a web page that would calculate your insurance premiums from a number of companies, which was very handy. I can't remember what it was, but I found it using a google search.

 

[TheDr]

Again, I acknowledge the I work for an insurance company. And again, I say that I work in Reinsurance (so I do to Insurance companies, what they do to you.

And when you do to Insurance companies as they do to us it causes them to do the same to us even more to meet your increased premiums and maintain a their profits.... just sayin...

 

[fijiman]

And when you do to Insurance companies as they do to us it causes them to do the same to us even more to meet your increased premiums and maintain a their profits.... just sayin...

lol...touche'!

ps. in my defense, I have an expensive hobby to maintain

 

[goalie000]

I know its not a car, but I got my renewal for my motorcycles (2) and I nearly crapped myself. I shopped around and got insurance from another company for over $1000 less! Loyalty means nothing any more!! Shop around!

 

[dr tongue]

Got my renewal and my auto premium jumped by 30 percent from last year.

Why are you accepting this, and not checking other rates from competing companies. if you are over 50, I would recommend Grey Power.

 

[oldjones]

I'm curious about what you called 'replacement cost', as the explanation for the increase. As I understand car prices, they drop as the cars age, and my insurance should—and does, sorta—drop too, since they'll only give me book value if it's totaled or the repair-costs exceed 'replacing' it with one of the same age.

Why would your car get more expensive to replace rather than less? What am I missing?

 

[Jennifer_]

There was a web page that would calculate your insurance premiums from a number of companies, which was very handy. I can't remember what it was, but I found it using a google search.

http://www.insurancehotline.com/?gclid=CPrN_suY0rcCFdBDMgodWk0ABg

 

[rld]

Actually no.

This is about Auto Insurance, which is a very short tail business. The premium received is paid is mostly paid as claims within 12 months. Investment income plays a relatively small role here.

However, note that Investment Income plays a very large role in long tail business like Life Insurance, Annuities & Pensions. So your comments (your Broker's comments?) would indeed be relevant there.

This is simply inaccurate.

Traditionally, before 2003 or so, auto insurers were quite happy to take a loss on premiums over the long term and make money on investment profits.

But if you look at reserve tracking and setting, and loss adjustment, these are all done over five year periods or longer, which is also how FSCO does their calculations.

Insurers are simply getting very, very greedy and now playing a political game.

 

[rld]

State Farm also recently lost a GST (now HST) case which will cost the industry a billion dollars. Governments are taxing our companies to death and they either pass on the cost or go insolvent.

While it is admirable to see you stick to your political philosophy regardless of the facts, auto insurers are making very, very healthy profits now in Ontario.

 

[rld]

While I agree with you that loyalty matters little (except as far as it influences profits), its not fair to describe Insurance companies as crooks and thieves.

"Insurance" exists fundamentally to protect us from losses that might be catastrophic otherwise. Apart from a few types of insurance (Auto, etc), most of us freely choose to purchase insurance and are happy to have it when we experience a tragic loss.

Insurance profit margins in a product are heavily regulated (especially in the US). And Insurance companies are widely held stocks, and are frequently a large part of the average Canadian's stock holdings (either directly or via our pension plans, mutual funds, etc)

I guess what I'm saying is that the fundamental purpose of Insurance is to protect widows and orphans. I know it sucks we have to pony up the premiums. But I don't think its fair to call Insurance companies thieves and crooks.

Again, I acknowledge the I work for an insurance company. And again, I say that I work in Reinsurance (so I do to Insurance companies, what they do to you.

It is entirely fair to call auto insurance companies in Ontario thieves and crooks.

They have misled the government and the public intentionally on a number of occasions.

They try to cook the books at every opporunty to look like they are making less profit than they are. They have exaggerated claims cost in public reports and have been caught doing so.

Recent times have shown them making significant profits, and now there is talk of adjusting premiums they are trying to mislead the government and the public to prevent FSCO from doing their job appropriately.

Anybody ever wonder in US states where the Superintendent of Insurance is elected they tend to have much lower premiums than in states where they are appointed?

 

[Rockslinger]

I shopped around and got insurance from another company for over $1000 less!

I would be concerned if the difference is that great. Years ago, my auto insurance company went bankrupt. I had to get a new insurance carrier. It took Coopers & Lybrand (the bankruptcy trustee) forever to sort out the mess and mail a refund cheque for something like $4 to me.

 

[blackrock13]

Dealt with Monnex and Halifax some time ago and changed after it was clear they were cherry picking files after acquisitions, illegal but hard/expensive to prove, and were sticking it to me both times. Went to RBC after that but felt they were raising rates beyond reasonable amounts over the last three years. The change to Grey Power, Trafalgar is the underwriter, was a welcome change.

 

[goalie000]

I would be concerned if the difference is that great. Years ago, my auto insurance company went bankrupt. I had to get a new insurance carrier. It took Coopers & Lybrand (the bankruptcy trustee) forever to sort out the mess and mail a refund cheque for something like $4 to me.

It's exactly the same coverage?

 

[rld]

I'm curious about what you called 'replacement cost', as the explanation for the increase. As I understand car prices, they drop as the cars age, and my insurance should—and does, sorta—drop too, since they'll only give me book value if it's totaled or the repair-costs exceed 'replacing' it with one of the same age.

Why would your car get more expensive to replace rather than less? What am I missing?

As yourself this question.

What portion of your premium dollar is related to potential replacement cost for your vehicle?

As opposed to "repair" or other categories?

 

[Insidious Von]

20 years with Monnex. Never made a claim (knock on wood).

First they doubled my home insurance policy over 3 years, but I stayed with them because of the excellent deal I was getting with my auto policy. Now they are fucking me around on auto as well. Time to take a serious look elsewhere.

Tiberius, car insurance rates are assessed by location and probability of theft/vandalism.

I spent a great deal of time and stress bouncing around insurance companies when I felt I was being mooched upon. Since 2005, I have been with The Personal/Desjardins. During that time I moved from Rexdale to Vaughan and switched from Honda to Subaru. My car insurance fee has dropped by 22%.

But don't rummage about here for answers, go to the source.

http://www.ibc.ca/en/

 

[spraggamuffin]

Don't forget about all the fraud they claim is the reason for these hikes as well.

Yes there is fraud, but until you can prove it , bring the perps to justice and make them pay, don't raise people's rates randomly.

Insurance companies should spend the money on hiring professionals who can help in catching the fraudsters instead of making bad high risk investments.

Also thank Mc Stinky for proposing that they should have a guaranteed 13% profit every single year.

And that it should not work as it rightly should ie lower profits and even losses in some years and record profits in others.

People whose rates have dropped will always side with the Insurance companies until their's increase.

Ontario has the highest Insurance in Canada because of people's ability to pay.

Rates are much cheaper under the public Insurance schemes but the cover less.

Not sure we want the incompetent government options we have in Ontario administering a public Insurance though.

There is enough corruption and incompetence already.

 

[rld]

Tiberius, car insurance rates are assessed by location and probability of theft/vandalism.

I spent a great deal of time and stress bouncing around insurance companies when I felt I was being mooched upon. Since 2005, I have been with The Personal/Desjardins. During that time I moved from Rexdale to Vaughan and switched from Honda to Subaru. My car insurance fee has dropped by 22%.

But don't rummage about here for answers, go to the source.

http://www.ibc.ca/en/

As long as you keep in mind that the IBC is funded by the industry and acts as an industry spokesman and lobbyist with the government, some of their information is useful.

However the body that regulates insurers in Ontario is FSCO

http://www.fsco.gov.on.ca/en/Pages/default.aspx

 

[oldjones]

As yourself this question.

What portion of your premium dollar is related to potential replacement cost for your vehicle?

As opposed to "repair" or other categories?

I would, but it would be pointless, because it's essentially the same question I had, and I don't know the answer. If the vehicle's value is declining, then the replacement cost must also be declining, and the cost of repair would be constant or slightly depressed as good wrecker's yard parts become more available. So how can replacement cost be a greater portion of the premium as Monnex told jtk?

Here's the only scenario where I can imagine that wouldn't be true: That you did a deal where 'replacement' was actually a brand new version of the old beater that got totalled. But I can't see that as being reasonable deal for customer or company beyond maybe the first year or two.

Surely it would be obvious you'd do better to depreciate your own car and have that money in the bank instead of asking the insurance company to build that into the premiums and seeing it disappear if you drove safe. They'd have to bank more and more against that nasty possibility every year hoping you'd not notice and pay up until … Wait a minute!

Is that it?