Amazed at the cost of insurance

Status
Not open for further replies.
Several opposing forces:

--folks have plenty of fender benders these days everyone being in a rush with crowded roads, cell phones ringing, texts arriving and appointments that need to be made in addition to other activities while rushing on the roads.

--After the fender bender, they want their car to be returned to pristine condition, perfectly matched paint with no distortions in the metal when looked at under sunlight, very expensive to repair

--People desire cars with all kinds of functionality that rely up many sensors, electrics and computers to control it all, again expensive to repair.

Our automobile insurance premiums need to be high enough in aggregate to pay for all of these very expensive repairs. It doesn't take all that bad of an accident to total a car these days. And insurance companies do not have a perfect crystal ball that allows them to accurately predict who will be having these costly accidents. License points, age, credit score, miles driven annually, telematics, etc. can be helpful in predicting who is more likely to have these accidents, but it is still a toss at a dart board to some degree. Insurance companies use the information they have and rely on the law of averages over many policyholders.
 
I'm with you on that here in Oklahoma. Wife was hit twice in OKC. Sure enough, they had no insurance. Luckily I maintained full coverage on all the vehicles, paid off or not for that reason. I've since added uninsured motorist, which with State Farm, automatically included underinsured motorist as well. We actually had one lady that hit my wife have the nerve to send us a letter and a form that basically states that if she made payments to us and we sign this form, she would be able to get her license back so that she could drive. Of course that letter included all the boo-hoo stuff like she's disabled, has 4 kids, etc. etc. Yeah, right, like that was going to happen. I'm out a deductible and insurance company is out about 3K.
 
The 6mo premium for my 2016 Nissan Quest is ~$317 w/ the kbb value being around $9500, yet my 2015 Nissan Vera's value is only about $5K and the 6mo premium is $320. My point being, it's all about the statistics for the particular vehicle. It's wise to get an insurance quote ahead of time.

Minivans tend to be reasonable to insure, given their size and capacity.

Pickup trucks are fairly high. I think my 2017 Ram 1500 4x4 is ~$420 for 6mo and it's a base model truck.

I have what I'd call mid grade coverage through Allstate. Yearly bill just over $2000 for the above 3 vehicles. Soon to skyrocket given I've got one driving age kid and two more soon behind.
 
Last edited:
Status
Not open for further replies.
Back
Top