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Insurance... Pay to Play

We must be an anomaly of some kind: we've been with the same insurance company for about 45 years now, have full coverage on our 2 Jeeps and a motorhome, and our premium actually went DOWN this year - our last claim was in 2017 when the differential on the motorhome got water in it from the flooding when Anderson Dam let too much water in to Coyote Creek. We actually filed a claim late last year for some damage to the motorhome caused by the road conditions on I40 but ended up closing that claim because the damage ended up being less than expected.

I've checked other insurance companies over the years but have never had a quote that could match our current company. So, what is the company: National General through the Good Sam Club. When we started with them back in 1980 it was GMAC, through Good Sam, but it changed to National General some time later. Over the years we've had maybe 4 claims through them so they certainly haven't lost any money on us!
 
Holeshot said:
Bud, try a few things:

1.) mileage. Ask if reporting annual mileage will bring rate down.

2.) Raise deductible as high as you can. Check what savings are before committing.



Reinsurance markets are all wonky since interest rates climbed. The near double interest rates are what's driving the harsh increases in insurance all around.
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I always do the mileage thing.

Deductable and looking for someone else if off the books for this year.
Insurance card was on the counter this AM. :laughing

Knowing the Mrs. once we get all bills we will be hunting for better deals for '25.
 
Holeshot said:
By "phantom profit", you mean paper profit, not actual capital (cash) increase?
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Yes, the growing inflation makes it look like they made more money than they actually did (which is taxed). Profit = (current) Revenues - (past) Costs. Because of inflation the real value of the profits (i.e. what it can buy) is lower because to continue operation in the current period they now have to purchase labor, material, etc. at higher costs due to inflation. Because of the tax on phantom or paper profit due to historically lower costs relative to higher current revenues, the pool of capital (from prior profits) is smaller too, i.e. capital consumption.

BTW, the pool of capital is, ultimately, the source of demand for labor, which is why inflation and capital consumption is bad for all, not just the capitalists but the commies don't want you to know this.
 
Gotcha. Cause reinvested capital is @ a higher rate for the same performance YoY as investment comes first and ROI, second. Agree with that.

Insurance companies do operate differently from standard firm profit classifications. Insurance premiums aren't taxed, but the return on the invested (held) premium pool is taxed. Insurers operate in a totally different world, IMO.
 
i just dropped collision, left everything else in place, prices are mad otherwise
 
Holeshot said:
Insurance companies do operate differently from standard firm profit classifications. Insurance premiums aren't taxed, but the return on the invested (held) premium pool is taxed. Insurers operate in a totally different world, IMO.
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Insurance companies and banks operate on the same principle of pooled risk (in various forms) so economically they are the same type of entities and, as you imply, have "special" rules for operating and making profits. Notice that whenever there is a "banking" crisis a number of large insurance companies fail as well. The system stinks from the Federal Reserve on down and is a govt sponsored criminal enterprise but they split the spoils and it is "legal" so it is okay, lol.
 
When I sold my R1200R and ordered a new '22 R1250RS, I just about choked to death when Progressive's online doodad quoted me.....$1,010.00 per month for full coverage.
I was paying about 800 a Year at the time, for full coverage on a '07 Bonneville, '17 KTM 690, AND the R1200R.....

I moved to Geico, who, at the time, sold me a full coverage policy for the RS and my other 2 bikes for ... 1200 or so per year.

First Renewal from Geico after one year? Double!

I called Progressive and a few other companies,.......and Progressive (the 1,100 a month people) offered me full coverage for all 3 bikes, at 1400 Per year...

It's crazy.


None of it makes sense, I tell you..... I suppose we have to shop around every time they raise rates to something ridiculous.
 
At least California isn't one of the states that can base your rate on credit score. That one fucks people up.
 
I can confirm that insurance premiums are out of control. Mine increased by 61%. I've been with Geico for the last 5 years with the same bike; zero claims. I spoke with an agent who said there was nothing they could do and was given an equine manure excuse that it's more expensive to fix broken motorcycles.
 
Gonna be a lot of uninsured motos on the road this season.
When you can walk out of a drugstore with a trash bag full of shoplifted items without consequence why would folks bother paying skyhigh insurance rates.
 
I just got a quote from State Farm for the new to me '19 R1250GS - $621/yr, which includes collision for $216/yr (about 1/3 of total) w/ $1k deductible. It helps to be almost 60, living in San Jose, I guess. In comparison, the previous owner, a 30-yr old in SF Mission District, said he paid $2k/yr on insurance premium; that's pretty steep.

My other 6 street bikes (all older and cheaper than the R1250GS) with Stat Farm cost $2.8k/year total.


Blankpage said:
I cover for everything except collision. Helps make insurance costs more bearable. Plus I don’t insure for the full year
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atoyf said:
i just dropped collision, left everything else in place, prices are mad otherwise
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How does it make sense to NOT have collision coverage, unless your bike is so cheap it's almost disposable in a collision?
 
If my bike is destroyed in a crash and Im still alive and functioning I’ll consider that a win, I don’t give a shit about the motorcycle.
And I’m hardly going to make a claim for something more minor like a tip over.

Bikes are toys they’re not necessities, destroying them is a risk we accept. If it happens then we learn from it and buy another or move on.
 
Gary856 said:
How does it make sense to NOT have collision coverage, unless your bike is so cheap it's almost disposable in a collision?
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>17 year old Wee 'Strom with 96K miles has entered the chat.

Just paid liability-only for the year in Jan for $252 with Pacific Specialty. If I crash and indisposed my fear is that it ends up in a yard for $20/day until I can recover.
 
$2k for collision?:wow Thats a gut punch.

When the premium for adding collision becomes 10% or more of the vehicle, be it auto or bike…. I’d be self insuring that portion of the risk.

Everyone’s risk tolerance, and equation is different. But I don’t like giving money away. If of course $2k seems like a good deal, then the premium is probably justified. :rofl
 
budman said:
I have been expecting a bump because my agent warned me all coverages are going up. I have Allstate.

Well the first arrived and it is my bike (full coverage). It not only went up it almost doubled.
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I'm expecting my insurance to go up 20% but I haven't seen it yet. I pay monthly but I think my policies are six months at a time so the increases (house, bikes, cars) might not all hit at the same time.
 
They (Geico) doubled my rate from exorbitant to astronomical. The reasoning I got from the agent was "nothing that you've done, but parts and labor got more expensive in CA and FL, so that's reflected in your premium". I now pay more for insurance than my loan, it's a racket and I'm not happy.
 
Kaiser $2536 monthly for 2 persons, $300 more than last year

California Fair Plan (fire insurance) went from $3300 to $4300
 
I think some may be overthinking it. If a company feels overexposed in this or that category, they raise prices to drive that book of business down to drive a portion to leave. Alternatively, they lower prices if they feel underexposed/under-represented in a similar fashion.

What has complicated things in the last decade is the massive fire claims. I don't think there is any way to prepare for that- it is a historic anomaly/broken crystal ball- so they can only respond by building their reserves (raise rates or reduce spending- or both). Will some have higher profits? Of course, right up to when it happens again.

All we can do is shop around. Dumping a portion of coverage to lower price doesn't make a lot of sense as it leaves you exposed for that area (why did you buy that in the first place?).
 
That is a cost risk analysis. When my bike was worth over $15k, it was worth paying $500/yr for full coverage. When it dropped to $5k, not so much. Just like it doesn't make sense to carry a $3M umbrella policy if I'm a paycheck-paycheck renter, but a $20k renters policy might make sense, but not so much if my belongings weren't really worth that much and rates doubled.

It's similar to paying for pubic storage - eventually you pay more in storage costs than the value of whatever you have in there.
 
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