At What Point.

[JRHill]

Insurance companies believe that if you never had a claim the odds of having a claim get stronger with time.

Statistics are a curious science. Related to insurance your point is something I've not considered. I think it is normal to reason that if you've never had a claim then you are a 'good' risk - meaning low risk. I chuckle internally with a grim face but I think the insurance company will flip-flop reasoning depending on what brings in the best revenue. That's the pessimist in me, obviously.

If you flip a coin enough times it's gonna come up the opposite of your wager. So if you are claim free you'd think that to your advantage but the insurance company with their actuaries may have a different calculation. You won't get an agent to drop his drawers and tell you what you need to know.

" Several years ago an agent told me that First year policies bring about a 50% commision to the agency while renewals would bring 10%. "

I think this is a valid point. I worked in direct sales for many years in a different industry and I was well compensated for NEW business. I received NOTHING for renewals unless there was an add-on which was split with the renewal rep. Renewals is a BIG business regardless of the product/service.

 

[JRHill]

In the last few months I received the new policy for the home, outbuildings and land. Also are riders for equipment: tractors, ATV/UTVs, the wood mill. We also have two road pickups bundled. The home policy was pretty reasonable. Automotive stuff was as expected. But lately the rate increases have gotten crazy. So I had a conversation with the DW and she ripped me a new one over the thought I was gonna drop the riders. In the end she told me to go **** myself and she would take over the insurance. It was/is a kiss-your-sister kind of conversation.

We live in a relatively high risk area, far removed. Our county services are fantastic and actually better than many city instances. Mainly because the responders are our neighbors who make up the RFD. I have stories....

The thing about being insurance poor is a for real thing. Some folk just lean in those directions including buying extended warranties. To me the whole thing is a distorted kind of statistics: you buy the 'coverage' and expect service when claimed and the insurance company is betting they can get out of the coverage, or minimally.

Insurance companies are HUGE investors in markets with the excess of expenses and pay outs. Then when something happens and they have to cash out of investments to cover claims there is all kinds of whining. Billy Jack comes to mind:

 

[Moose7060]

My home insurance costs 0.17% of the assessed value of my home which doesn't include what the cost would be to replace all the contents, outbuildings nor the liability insurance. It is a no brainer for me to pay this small price yearly and have peace of mind. Glad to pay, hope I never have to use it.