Progressive Insurance quote new authority. Does this sound right?

Hahaha awesome

 

The various insurance departments across the country REQUIRE insurance carriers to maintain adequate capitalization.......ostensibly to make sure carriers stay solvent.

Additionally, insurance is to some extent like banking......in our case we sit on the annual premiums until such time as the claims are all paid. What is left over then.....on a annualized basis is "income". Obviously static costs (payroll, rent etc) are immediate costs, but claims don't get paid immediately.

We refer to claims that get paid the quickest as First Party Claims....typically fire, homeowners, wind hail & vehicle property damage. These types of claims are typically not litigated, and are easily adjusted, so claims are paid quickly....some almost immediately.

Liability associated claims are a whole different animal.....with payout profiles that are in the area of 3.5 years for "automobile", 7-10 years for General Liability claims........and 10-50 years for Umbrella/Excess Claims.

Consequently we "invest" the premiums we collect, until they have to be paid out. So investment income.....or as Mr Buffett calls it, the float, can generate income.....so that's why/how large insurance carriers can have lot's of "cash on hand".

Trust me, the insurance industry is so heavily regulated by do gooders that someone is always looking over our shoulder to make sure we stay solvent and pay the claims we are obligated to.

 

Insurance is going up for everything.

My ex that I’ve been visiting with is working from home for a high end insurance company down here in Naples Florida.

Most of her customers have 2-6 million dollar houses and Bentley’s and Ferrari’s.

Those kind of customers get personal attention over the phone from her.

She puts them on speaker phone when she has to tell them that their insurance went up 25% on their house this year.

Or their new rate after wrecking the Bentley .

 

Well for a new startup your accident and ticket will not look good , thats all I meant . The rate of insurance is what I was referring to , nobody knows what rate your willing to haul for but everyone's financial situation is different . Some guys run on a wing and a prayer just squeaking by month to month going further and further in debt . Some guys on here run for $5 p/m and only work 3 months hauling pillows , any ways good luck .

 

I drive a 2003 conversion van and a 2008 Nissan 4wd Pathfinder.

Been with State Farm for 40 years no accidents 1 ticket in the last 5 years.

My rates are stupid expensive for what I pay for my clean record.

 

The problem to some extent, is that we, as an industry are always playing catch up rate wise due to the aforementioned political involvement. Case in point, it took us 3 years to "revise" our filing with the CA Department of Insurance. We knew our rates were inadequate at the time we tried to change the rates.....but had to wait three years to get to use them......so to CYA, we raised rates more than probably needed at this time, expecting it will be a while before we can again revise rates.

With the various state involvements we have 100+ staff promulgating rates and trying to get states to allow us to use them.....a swamp nightmare.

 

That's your problem right there, brother. My insurance goes up every year. They blame it on the risk pool, but they're full of ####. How do I know? Because every three years I switch between GEICO and Progressive. Each time I switch, my premium drops almost a grand per year, and then starts increasing. Rinse and repeat, and I don't think my insurance rates have hardly budged in the long run. Your miles may vary, but you might call someone and at least get a quote.