Insurance: the truth or a scam

[Maverick_82]

I REALLY NEED TO VENT!

One of the of the biggest complaints in the driving world is insurance.
As far as insurance goes IT'S A SCAM!!! My sister is much more unreliable, received her first speeding ticket a few months after she got her license, drives a '97 Sunfire WITH FULL COVERAGE is far lower than mine. I haven't a single driving violation, I’m a model citizen, i receive a good student discount on my insurance, i drive an 82 trans am WITH LIABILITY, and my insurance bill is almost three hundred dollars; it's because I’m a guy! Insurance companies will present to you statistics that they claim to be accurate, given to them by a federal commission; this information is entirely misleading. The data contains many factors and variables that distort the accuracy of its message, the overwhelming number of men over women is occupational fields based solely on driving, and usually the number of men in accidents is comprised of all age groups while the number of women in accidents is taken from certain age groups. The bottom line is recreational and sometime occupational driving; some career drivers get their insurance through their company. The truth is on average women are involved in 5.7 crashes per million miles driven. Men, on the other hand, clocked up just 5.1 crashes per million miles. Also, men drive an estimated 74 percent more miles per year than women.
However, insurance companies insist that men are in more accident! You know us guys, DRIVEN BY OUR EGOS .

If it were any other service, treating people differently because of their gender would be sexist and therefore illegal! But since it's insurance companies, no one bothers to speak up.

Ladies if this offends you, I deeply apologize but this is probably as accurate of data as you can find.

[Trash man]

hmmm i only pay 140 a month for my car and for a 2000 ss camaro wit full coverage it was gonna be 150 a month. sound like u need to switch

[FroSSty]

Don't even get me started on how big a scam insurance is... Just let me tell ya that a few years ago, I couldn't put full coverage on any car for under $2500 per year... So i cheat, put liability on a beater(which basically covers me) and then put my mom's name on the title of my caprice so she could insure it in her name for about 800 a year.(which covers the car) Of course, Michigan is a "no-fault" insurance state.(another big scam)

[Performin Norman]

In most states, you don't have to have insurance. You just have to show financial responsibility. You have to post a $50,000 bond with the state. If you hate insurance, go this route.

[Nightrage]

It's definitely a scam. We sa this video in one of my economics classes showing how insurance companies charge so much because if for example- just to make things easy, let's say an insurance company has 3 clients. They charge $2,000 a year. After one year, they've made $6,000. Then one of their clients has an accident and does $20,000 worth of damage. They're $14,000 in the hole. We know that this simply isn't the case. If it were such a dangerous business then people like my brothers girlfriends boss wouldn't have 3 luxury cars and a Viper (and who the heck knows how freakin huge his house is). I've been told that i'm getting 35% off my insurance for having dual airbags, combined with 5% off for ABS, 15% for drivers ed and 10% for a defensive driving course. 65% off of my insurance rate and with a sparkling clean driving record, they still want $7,500 a year from me for liability and collision. For just liability, they want $3,600. If my car had no safety features and i didn't have drivers ed or anything, i'd be paying over $15,000 a year for liability and collision? Something doesn't seem right at all. I think you're right- it is a scam.

[94 formula]

In most states, you don't have to have insurance. You just have to show financial responsibility. You have to post a $50,000 bond with the state. If you hate insurance, go this route.

Agreed.


Also look at your stats Maverick if men only have 5.1 crashes per million miles and women have 5.7 per million but men drive 74% more miles a year that puts men through the roof compared to women...do the math. I'm not saying that insurance companies do not do some shady things. My main gripe with them if its someone elses insurance company having to pay you they will try to give you as little as possible at any cost. My one argument in their defense is that I'm 19 years old driving a V8 car and paying under $450 a year for liability. I've never had an accident that was my fault but over 3 years they haven't gotten $1500 from me and even a small fender bender would probably cost more than what I've paid them. Shop around it may be a pain but definetly worth it once you find a good company with good rates.

[Dave M]

Insurance companies don't make a profit by taking in more than they pay out. As you pay them your premiums, they invest them. That's where the real money is made. As was said earlier, 3 people paying in for a year may only pay in $5,000. A single claim could cost more then that. The insurance companies make the profit on the investments that money was in for the year.

[Z Ya Later]

Holy freakin' crap, you guys are gettin' reamed. I've got full coverage on the Z and liability on the Jeep and its only $117/mo. in CA, single male under 25. Seriously guys, switch insurance companies. Try Allstate, they've been good to us.

[FroSSty]

Allstate? you may be paying less but wait til you have a claim... They WILL use aftermarket parts and they WILL try (and probably succeed) to get you to go to there "Pro" shops, which have legal binding contracts that basically say they will fix your car for as cheap as possible. Cheap being the key word. Don't get me wrong, a lot of insurance companies do this. Progressive, State Farm, Allstate, AAA to name a few. I should take State Farm out of there because they are the only company that will not use aftermarket parts (except chrome bumpers but that will end soon due to quality isuues).

If I were to change companies, it would only be one of the following; Auto Owners, State Farm, Pioneer State, or one of there smaller companies. These are the only companies that will look out for your best interest. At least they will in my area...

But if you can only afford cheap insurance, prepare to get cheap coverage and a cheap repair if and when the time comes...

BTW- In 2003, State Farm netted 89% profit...That is only one company, and they are on my good list

But in the end, All insurance companies suck!

[Z Ya Later]

Allstate? you may be paying less but wait til you have a claim... They WILL use aftermarket parts and they WILL try (and probably succeed) to get you to go to there "Pro" shops, which have legal binding contracts that basically say they will fix your car for as cheap as possible. Cheap being the key word. Don't get me wrong, a lot of insurance companies do this. Progressive, State Farm, Allstate, AAA to name a few. I should take State Farm out of there because they are the only company that will not use aftermarket parts (except chrome bumpers but that will end soon due to quality isuues).

If I were to change companies, it would only be one of the following; Auto Owners, State Farm, Pioneer State, or one of there smaller companies. These are the only companies that will look out for your best interest. At least they will in my area...

But if you can only afford cheap insurance, prepare to get cheap coverage and a cheap repair if and when the time comes...

BTW- In 2003, State Farm netted 89% profit...That is only one company, and they are on my good list

But in the end, All insurance companies suck!

Its still cheaper than paying 2-3 times as much. Plus, you fight them long enough, you'll get your way on where to go and which parts are used. Besides, it was a suggestion for looking for cheaper insurance.

[imwlw83]

Insurance really sucks, bad.... But you have to have it, which sucks. If you want to make yourself more mad, just think about what you pay for insurance on "your car". Do you realize that as your car depreciates that your premiums dont go down. And if you were to say total your car you get book value. Let me see I i can make it clearer I think I confused myself. I bought a $23k pickup in 95, my full coverage insurance was about $600 a year. Now if i would have totaled that truck the second day I had it, the insurance would have paid her off at book value, $23k. I still pay the same premiums that i did back then, but if its totaled now they will give you book value (about $6k), what a bargin.
Out of the 4 vehicles that I have , the Trans Am was the most expesive, thats understandable, and my Corolla is a very close second. The pickup and Suburban are the cheapest. Go figure.
On another note, I have insurance with USAA, you have to be military or retired or have some affiliation to get there insurance, but if you can, it will be cheaper then anyone. And they have the best claim services i have ever seen.
In closeing, i to think its a scam. My question would be how do i get one of them $50k bond thingyies in Louisiana. Peace my brothers and sisters.

[FroSSty]

Plus, you fight them long enough, you'll get your way on where to go and which parts are used.

Very True... Most people don't fight for it until we tell them they are entitled to have there car restored to "pre-accident" condition.

Besides, it was a suggestion for looking for cheaper insurance.

Sorry, I didn't mean to attack your statement... I was just blowin some steam.

[Z Ya Later]

Very True... Most people don't fight for it until we tell them they are entitled to have there car restored to "pre-accident" condition.


Sorry, I didn't mean to attack your statement... I was just blowin some steam.

Oh, yeah, sure, now you wanna place nice lol j/k

[94 formula]

imwlw83 You have to check your state laws on that it varies from state to state.

Also don't forget an insurance company is not just insuring your car they insuring that if you are in an accident that they will pay for what happens. Many times between medical bills, fixing damaged vehicles and law suits accidents can cost well over 100k. I'm sure not to many of you have paid that in insurance costs.

Alot of insurance companies try to get you to take your car to one of their certified shops but atleast in PA it is your right to choose who does the work to have the car fixed no matter what they say.

[FroSSty]

Alot of insurance companies try to get you to take your car to one of their certified shops but atleast in PA it is your right to choose who does the work to have the car fixed no matter what they say.

It is your right in any state you live in... In fact, there are some states that are now passing bills that say insurance companies cannot reccomend any shops... Not only that but allstate has bought collision repair shops down it Texas and other states. They are called Sterling collision shops. ie. Would you want to go to a hospital/doctor that not only your insurance company refers but they own as well? Who's best interest is that doctor lookin after? Yours or the man who pays him???(kinda like hmo only worse) But the good news is that they will probably (hopefully) make it illegal for insurance companies to own shops. Again, just blowin steam. Nothing personal to anyone.