Insurance Increases

[The Evil Twin]

Keep hearing it over and over. And now a lot of insurance companies want you to replace your roof or water heater at a certain age. Honestly your roof should be pro-rated based on its age, too many people just get a free roof every 10 years thanks to the storm chasers.

My favorite is Virginia now requires under-insured coverage on your car policy. BUT YOU DON'T ACTUALLY HAVE TO HAVE CAR INSURANCE!!!! So people continue to not have insurance but you punish the people that have it.

Not exactly. You can still have a liability only policy (provided you don't have a lein on the car). That does not include under/ un insured coverage. If you choose a full coverage policy, then yes. There is.
Think about it though. It's really in the best interest of the policy holder. If some donkey totals my $80k vehicle and I get a broken leg, but only has $50k in liability insurance, I'm on the hook for the $30k balance on the car and my medical.

 

[DustyRusty]

One thing that many people don't understand is how "uninsured/underinsured" coverage works. Let us take the example above, if the at-fault person has $50K in liability insurance and your policy for "uninsured/underinsured" coverage is also $50K, you cannot collect the $30K balance on your policy. The way that the policies are written, they deduct the other person's dollar amount from your amount first and that is what you will get, the difference if your amount of "uninsured/underinsured" is greater than the other person's. Every state has different dollar amounts and some combine the "uninsured/underinsured" with the dollar amount of your policy. I have $100/$300 liability insurance. I also have a 2 million dollar umbrella policy that picks up after the limits of my liability insurance are exhausted. Some might say that I am "over" insured, but I look at it from the standpoint of what I have to lose. Get into an accident where there is a death and injuries to others and that $100/$300 liability limit can be quickly exhausted. Without my umbrella policy, I could lose my home and my retirement. I know people who have much larger umbrella policies than I do because they have more to lose. It all depends on how much risk you are willing to take and what you have to lose.

 

[The Evil Twin]

One thing that many people don't understand is how "uninsured/underinsured" coverage works. Let us take the example above, if the at-fault person has $50K in liability insurance and your policy for "uninsured/underinsured" coverage is also $50K, you cannot collect the $30K balance on your policy. The way that the policies are written, they deduct the other person's dollar amount from your amount first and that is what you will get, the difference if your amount of "uninsured/underinsured" is greater than the other person's. Every state has different dollar amounts and some combine the "uninsured/underinsured" with the dollar amount of your policy. I have $100/$300 liability insurance. I also have a 2 million dollar umbrella policy that picks up after the limits of my liability insurance are exhausted. Some might say that I am "over" insured, but I look at it from the standpoint of what I have to lose. Get into an accident where there is a death and injuries to others and that $100/$300 liability limit can be quickly exhausted. Without my umbrella policy, I could lose my home and my retirement. I know people who have much larger umbrella policies than I do because they have more to lose. It all depends on how much risk you are willing to take and what you have to lose.

That is not the case in my state. Coverage is stacked here. So of they have 50k and I have 100k, I will get paid up to 150k. It was not always like that, but it is now.

 

[armylifer]

Different states have different laws concerning insurance. The bottom line here is; make sure that you are insured enough to cover whatever you have to lose. Also, generally speaking, the older you get, the more you have to lose. Check with your insurer and make sure you are adequately insured against what you have to lose in the worst case scenario. It surely does cost you more in the end but insurance is only there to protect you from the "what if" scenario.

 

[fried1765]

One thing that many people don't understand is how "uninsured/underinsured" coverage works. Let us take the example above, if the at-fault person has $50K in liability insurance and your policy for "uninsured/underinsured" coverage is also $50K, you cannot collect the $30K balance on your policy. The way that the policies are written, they deduct the other person's dollar amount from your amount first and that is what you will get, the difference if your amount of "uninsured/underinsured" is greater than the other person's. Every state has different dollar amounts and some combine the "uninsured/underinsured" with the dollar amount of your policy. I have $100/$300 liability insurance. I also have a 2 million dollar umbrella policy that picks up after the limits of my liability insurance are exhausted. Some might say that I am "over" insured, but I look at it from the standpoint of what I have to lose. Get into an accident where there is a death and injuries to others and that $100/$300 liability limit can be quickly exhausted. Without my umbrella policy, I could lose my home and my retirement. I know people who have much larger umbrella policies than I do because they have more to lose. It all depends on how much risk you are willing to take and what you have to lose.

Same situation here!
May be "over insured", but am too old to risk everything,.... with driving skills/vision decreasing over time.
I can't loose my home/property though, because that has been in an irrevocable trust for my children, for the past 26 years.
I have life estate, I get the privilege of paying for maintenance and taxes, but they own the property.

 

[The Evil Twin]

I can't loose my home/property though, because that has been in an irrevocable trust for my children, for the past 26 years.

That is one of the most overlooked protections. My mom and I are on a trust for her estate. Simply for the reason that when the inevitable happens, it will be less paperwork and taxes.
A good friend had his dad pass two years ago. His dad's holdings were in a trust, but no one but his dad was on the trust. Long story short, by friend is on the hook for nearly $500,000 in various taxes because he "inherited" the estate.

 

[fried1765]

That is one of the most overlooked protections. My mom and I are on a trust for her estate. Simply for the reason that when the inevitable happens, it will be less paperwork and taxes.
A good friend had his dad pass two years ago. His dad's holdings were in a trust, but no one but his dad was on the trust. Long story short, by friend is on the hook for nearly $500,000 in various taxes because he "inherited" the estate.

My nearly 12 acres of ocean view property that passed to me through a trust, is the primary reason for the current trust (I am 83).
My oldest son, and I are the trustees.
Value is so high, that it would need to be sold to pay the tax, if not in a trust.

 

[The Evil Twin]

My nearly 12 acres of ocean view property that passed to me through a trust, is the primary reason for the current trust (I am 83).
My oldest son, and I are the trustees.
Value is so high, that it would need to be sold to pay the tax, if not in a trust.

That is exactly the reason so many farms fail and get sold at auction or bought by conglomerates.

 

[lugbolt]

there's a whole lot of $100,000+ cars and trucks running around now

the minimum liability coverage is $50,000 and that's what 99% of insureds buy.

If I run a red light and total a $100,000 tesla, I'm on the hook for the other $50k too.

Hence, one reason insurance rates are going up.

Greed among attorneys is another reason. Some of the attorneys are advertising continually about "hurt in a wreck, call me" type deal and they go after insurance companies and the insured individuals. Attorneys don't exactly work for cheap labor either, around here $600/hr is average and that's cheap. Add that cost to the suit amount. In the end the attorney gets over half of what you get, so they automatically want to go after em for way more than the "value".

Everywhere you look. TV, internet, this site sometimes, billboards, radio, attorney advertisements. "Roof damage? Call our firm". You get the idea. Helps make people more litigious. They've gotten people conditioned to believing that they could win a few million from a rear end accident.

I got into a little fender bender the other day (other drivers' fault) and thus far, 4 business days, I've had 84 letters from different attorneys. That should tell you something. Mailbox has been FULL every day the mail has run, not to mention the many missed and ignored phone calls.

 

[jyoutz]

there's a whole lot of $100,000+ cars and trucks running around now

the minimum liability coverage is $50,000 and that's what 99% of insureds buy.

If I run a red light and total a $100,000 tesla, I'm on the hook for the other $50k too.

Hence, one reason insurance rates are going up.

Greed among attorneys is another reason. Some of the attorneys are advertising continually about "hurt in a wreck, call me" type deal and they go after insurance companies and the insured individuals. Attorneys don't exactly work for cheap labor either, around here $600/hr is average and that's cheap. Add that cost to the suit amount. In the end the attorney gets over half of what you get, so they automatically want to go after em for way more than the "value".

Everywhere you look. TV, internet, this site sometimes, billboards, radio, attorney advertisements. "Roof damage? Call our firm". You get the idea. Helps make people more litigious. They've gotten people conditioned to believing that they could win a few million from a rear end accident.

I got into a little fender bender the other day (other drivers' fault) and thus far, 4 business days, I've had 84 letters from different attorneys. That should tell you something. Mailbox has been FULL every day the mail has run, not to mention the many missed and ignored phone calls.

Agree with your statements, but in my experience, attorneys take 1/3 in an accident settlement, not 1/2. And they don’t bill by the hour for that work, just take the 1/3. Not defending attorneys, just my experiences.

 

[DustyRusty]

They have gotten greadier recently and they are now asking 405 plus the filing fees and costs. If it is a strong case, they will spend as much as they feel necessary to win because they are spending your money. The only time it becomes their money is when they lose.

 

[lugbolt]

Agree with your statements, but in my experience, attorneys take 1/3 in an accident settlement, not 1/2. And they don’t bill by the hour for that work, just take the 1/3. Not defending attorneys, just my experiences.

Must be locale specific.

I had to hire one a while back and he was right at $450/hr. Just a civil matter between myself and a former friend that couldn't be resolved in small claims.

I don't like attorneys, and do my best NOT to use their services if possible. When I was in school I thought I wanted to be a pilot at first, but after I got to about 6'3" in middle school, that option was out, so I thought it'd be neat to study law. Figured out quickly that it was not my forte'. Have some friends who went on to law school, one is now the governor and others have their own practice. Still not my cup of tea.

 

[jyoutz]

Must be locale specific.

I had to hire one a while back and he was right at $450/hr. Just a civil matter between myself and a former friend that couldn't be resolved in small claims.

I don't like attorneys, and do my best NOT to use their services if possible. When I was in school I thought I wanted to be a pilot at first, but after I got to about 6'3" in middle school, that option was out, so I thought it'd be neat to study law. Figured out quickly that it was not my forte'. Have some friends who went on to law school, one is now the governor and others have their own practice. Still not my cup of tea.

I was speaking about accident injury settlements. They do charge by the hour for a matter like you experienced. But I do know some that charge flat rates for specific simple cases.

 

[fried1765]

Must be locale specific.

I had to hire one a while back and he was right at $450/hr. Just a civil matter between myself and a former friend that couldn't be resolved in small claims.

I don't like attorneys, and do my best NOT to use their services if possible. When I was in school I thought I wanted to be a pilot at first, but after I got to about 6'3" in middle school, that option was out, so I thought it'd be neat to study law. Figured out quickly that it was not my forte'. Have some friends who went on to law school, one is now the governor and others have their own practice. Still not my cup of tea.

Don't know where being a pilot was "out" by being 6'-3", ( up to, and incl. 6'6" ).......but in my era, that altitude was quite acceptable, in both the USA and Canadian military services.
There were limited height exceptions for a very few aircraft.

 

[P0234]

Not exactly. You can still have a liability only policy (provided you don't have a lein on the car). That does not include under/ un insured coverage. If you choose a full coverage policy, then yes. There is.
Think about it though. It's really in the best interest of the policy holder. If some donkey totals my $80k vehicle and I get a broken leg, but only has $50k in liability insurance, I'm on the hook for the $30k balance on the car and my medical.

Wrong, you DO NOT NEED TO HAVE INSURANCE to be legal driving in VA.

You're also wrong about being on the hook. That person is liable for the $30k. If they pay it or not is another thing.

Regardless, its hypocritical to require me to have uninsured coverage when drivers are not required to have insurance at all. Its even stupider that uninsured (which I already had) is a different line item than under-insured.

 

[The Evil Twin]

Wrong, you DO NOT NEED TO HAVE INSURANCE to be legal driving in VA.

You're also wrong about being on the hook. That person is liable for the $30k. If they pay it or not is another thing.

Regardless, its hypocritical to require me to have uninsured coverage when drivers are not required to have insurance at all. Its even stupider that uninsured (which I already had) is a different line item than under-insured.

Uh.... I never said you have to have insurance. I only said you are not required to have un/ underinsured coverage because you can get a liability only policy.
And, uh.... I'll wager I'm right on point #2. The other person is NOT on the hook for it. YOU are. YOU took the loan, YOU pay the debt. Sure, you could sue them for the cost of covering it. Even if the court awarded you the damages, it it STILL YOUR debt to the lein holder. The bank doesn't care about the judgement.
Here is a quick snip from Progressive. It doesn't take much of a search to find out I'm right. You'll get hits from attorneys, insurance companies and state web pages.

 

[fried1765]

Uh.... I never said you have to have insurance. I only said you are not required to have un/ underinsured coverage because you can get a liability only policy.
And, uh.... I'll wager I'm right on point #2. The other person is NOT on the hook for it. YOU are. YOU took the loan, YOU pay the debt. Sure, you could sue them for the cost of covering it. Even if the court awarded you the damages, it it STILL YOUR debt to the lein holder. The bank doesn't care about the judgement.
Here is a quick snip from Progressive. It doesn't take much of a search to find out I'm right. You'll get hits from attorneys, insurance companies and state web pages.
View attachment 116920

"the bank doesn't care about the judgement".
Assuming that "the bank" owns everyone's cars?

 

[GrizBota]

My auto insurance went up an average of 16% over six months (I renewed in September for the next 6 months). My oldest car went up 27%, it’s just an old a Honda Accord, not a rare collectable. No claims in the last 5 years and never had an at fault claim. Sweet deal for the insurance company.

My equipment is on my farm hazard insurance policy, stated value equal to what I paid for it. Those increases are very modest, maybe 1% over a year. If I have a loss, I’ll loose out because of inflation. Replacing my $22k L will be a $45k proposition.

And the bank owns nothing of mine. Although I let them loan my money to others at about 100 times what they pay me. Sweet deal for the bank.

 

[The Evil Twin]

"the bank doesn't care about the judgement".
Assuming that "the bank" owns everyone's cars?

Nope, no assumptions. If you follow along in our debate, the example I gave was with a bank owned vehicle.
If it's owned outright, the owner would just lose the $30k (or whatever value) that is over the liability limit of the at-fault driver.

 

[GrassLakeRon]

Insurance Companies Mantra.....