Maybe it's time for a state to start a nonprofit insurance fund? Insurance companies exist only for profit, which is antithetical to the point of insurance.
this post was submitted on 16 Jan 2024
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You egomaniac! Don't you ever think of the shareholders? Monster!
Florida, of all states, created this. There are requirements to use it, but for many it is their only real option.
Does it actually cover anything? I haven't looked into it but my knee-jerk reaction is that it's very simple and doesn't cover anything important, especially anything having to do with climate change.
Florida here. They have adequate coverage, but there are caps in some extra options or high-end tell estate. The bigger issue is that all the other instance agencies are pulling out of the state so Citizens (the state insurance) is having to cover more and more to the point that the state is just one direct hurricane hit away from insolvency.
Being from BC the basic car insurance is a non profit Provincial run scheme. All vehicles on the road need this basic insurance. They also manage rules, regulations, and other safety requirements for the Province.
Then extra coverage can be bought from the government agency or from private providers. The government is covering for all the bad drivers and then dealing with all the scammers while the private providers then cherry pick the best drivers for the extra coverage.
Insurance is expensive and there are the usual cries to make it private so it will be much cheaper!
I've lived in other Provinces where it's a private scheme. They are very expensive for new drivers, and those that have problematic issues can't afford to get insurance making it harder on those that have it and become tangled up with these uninsured drivers. This affects the good drivers eventually too. Most insurance works this way as it is.
It seems the grass is always greener...
Insurance companies are required to pay out all but 15% as it is, so really, that's the most it could save, and since a new governing body to handle claims would have to exist, it would require at least 5% to pay staff, so that cuts it down to saving maybe 10 at best over an insurance company.
Right now the nation is supplementing states that have higher storm damage. People living at those rich coastal states that get hit by these storms are paying less than their risk and causing the rest of the nation to pay higher rates because the insurance companies aren't allowed to charge places like Florida more.
In other words, if insurance went state to state, places like Oklahoma and Missouri would save money due to the lower risk, but places like Florida would have to pay out more than they currently are or the state would lose money in payouts.
So insurance companies wanting to charge Florida and California more isn't really going to make the insurance companies more money a year. They're still locked at having to pay out 85% of what they take in to their insured customers. It would actually mean that the insurance company wouldn't have to inflate prices they charge to all the rest of the country in order to supplement the customer's they have in the states in high damage areas. I'd be all for it, since I don't live in a warm state with a beach. It's not right that I don't get a day trip to the ocean, but I have to pay the higher insurance rates for the people who do.
Well some states already have that for example Citizens in FL. Everyone who buys property insurance has to pay into it to cover people who own property in places that nobody in their right mind would insure for wind. Some states only allow work comp through the state or the state competes with private insurers as well. But given the political climate in like half of states I'm not sure how you expect that will really be better. Private insurers are definitely looking for profit but when the state steps in it's not like rates are going to be dirt cheap, or if they are just just going to be paid by tax increases instead. Home and property insurance is hella expensive in some areas because it costs a lot of money to constantly rebuild people's buildings and auto insurance is hella expensive because people buy hella expensive cars then drive like fuckin maniacs, and medical costs are outrageous. If they state handles the insurance you're still gonna have to pay for your insurance and you're still gonna have to subsidizebstupid people who drive like idiots and whatnot, but you have Ron DeSantis siphoning funds instead of CEO bonuses and golden parachutes.
Only if you make it one time thing as in you get your insurance payment only if you use it to rebuild somewhere else.
And the states regulate the hell out of insurance anyway, might as well just provide it at no profit if you're making all the rules.
We have province run auto insurance in British Columbia. It isn't perfect but it works fairly well.
You mean like a GovErmnent Insurance COmpany?
I work in insurance and it's wild how many insurance carriers have pulled out of Florida and California due to natural disasters. The market is vastly shifting to smaller carriers in these regions.
CA and FL are hit with some kind of major event what? annually? or pretty damn close to it?
can you blame them for not wanting anything to do with it?
Interesting, though: the highest insurance rates are in the midwest - Oklahoma, Nebraska, Kansas. No one lives there, so the risk pool is smaller than big states like CA and FL, and you can't send firefighters to divert a tornado. We'll see if that holds up to climate change, bigger CA fires, and more frequent FL hurricanes.
Not according to my FIL. Nope, he's convinced the media articles are just a lie cuz "they want the auto insurance money and the state won't let them do auto unless they do home" 🙄
I've had three insurers in four years in FL. Policy price increased each time, as well. I have no idea what's going to happen if it continues. I can't afford to keep up.
The core of the issue is people shouldn't live in these places.
Insurance companies provide insurance. It's like people in this thread don't know what insurance is.
What it isn't: making a poor financial decisions and someone giving you money because you make a stupid decision.
Insurance is about risk. Insurance costs more than you gain, that's how it's designed. On average people lose on insurance, but the way people work is they would rather guarantee losing small amounts than risk losing a big amount. Insurance doesn't work any other way.
Your group needs to pay small amounts each to cover occasional large expenses. If the system is full of large expenses then the group needs to pay large expenses each and then there is no point of insurance.
Christ. People just want feel good answers rather than living in reality. Climate change is coming. It's been well known since the 80's at the latest. You have been signing cheques and now the bill is due, you could have gotten out 40 years ago.
In California, you pretty much can't get fire insurance which is required by mortgages, so only corporations can even buy property here....
You can't get it in the boonies. I live in a city and my insurance, with an earthquake rider, is only a few hundred a month. My coworker lives in sparsely populated area (by the standards of this metro area) and his insurance costs a little over 7x as much, and continues to rise.
And it's deserved too. These people move out there because they're the type that want to "own land," but then none of them maintain it. I'll go over to his house for a party and be in the backyard and everywhere I look, his property and every property it touches, as soon as you go beyond the area immediately around the house that is actually used, the entire ground is covered by kindling. One dropped cigarette and his entire neighborhood is gone.
Home and car insurance is becoming impossible because we can't afford homes or cars. It's impossible to insure what we don't have.
The only two states that don't require some form of car insurance are New Hampshire and Virginia.
So I guess we're all fucked in the other states?
So Virginia is weird. You can technically drive without insurance but you have to pay a one time fee to DMV and register as uninsured. In truth though you will not likely get an auto loan without it. And good luck if you get in an accident. I'm guessing that this is a hold over for vehicles that are "farm use" or for "antique vehicles" that might need to use the roadways occasionally but don't really need expensive coverage.
You also have to pay the uninsured motor vehicle fee when you renew registration, so that comes out it $500/year or $40/mo. So you end up paying 1/3 to 1/2 of insurance and don't get any coverage.
In Va, it's not a 1 time fee, it's a $500 fee on top of your yearly registration.
But that exemption it's also going away this year in July. After that insurance will be required.
I didn't know it was annual. Wow that's even worse.
That was kind of the point, they want people to have insurance.
Car insurance costs more than $500 a year generally.
Technically you are not required to have auto insurance. The law (most states if not all?) requires “financial responsibility”. This can be achieved by filing a bond with the state instead of paying for insurance.
However, insurance is far and away the most cost effective way to meet financial responsibility requirements. The coverage is greater and the costs are much cheaper.
Or, don’t drive. Spend the money on investing in mass transit and walkable cities and then you don’t have the cost of insurance, a vehicle, maintenance, or fuel. If only it were that easy…
It isn't that easy. I would love it, but suggesting it's easy is ludicrous. It would take an incredible amount of money and time and effort and, in general, it is an effort worth making. But it won't help those of us who live well outside city limits down a country road.
Agreed, it’s not easy, and I don’t suggest it is.
I’m in a similar boat, living in a suburb in county land where the closest grocery store is 15 minutes away. There’s no chance in hell Phoenix will move away from cars in my lifetime.
My only option is to move to a city with infrastructure already built. Housing will be more, but not having the costs associated with car ownership vastly outweighs the cost of housing increases. But again, it’s not that easy.
The truth is, there is no easy answer to the rising costs. Public companies must make a profit. If there are more frequent losses and those losses are more expensive, the only thing to do is raise premiums.
Making the companies “public” like Citizens doesn’t fix things either, it just makes them susceptible to politics, which will always come back to bite.
Get hit by someone that's totally irresponsible in New Hampshire and tell me you're not fucked!
Obviously. I'm just saying- what are you supposed to do if you need insurance but no one will insure you and this is happening to huge numbers of people? I'm sure the Fuck Cars folks would tell us to just not drive. I live in a semi-rural subdivision down a country road from a four-lane highway, two miles from the nearest bus station. It was -16 this morning when I woke up.
I have a rider on my insurance specifically to cover additional costs incurred if I get in an accident where the other party is at fault, but has no insurance themselves. It doesn't cost that much more.... yet.
Similar problems in New Zealand, for different reasons.
Afaik earthquakes and flooding have crippled the insurance companies, nearly to the point of the entire industry threatening to quit.
I don't blame then for qutting if it's unprofitable. Maybe it'll be a wake up call to require new building codes to entice them back.
Homes can be retrofitted for earthquakes. It costs money, but if it's that serious a problem, maybe the government needs to add incentives to do it, and maybe insurers won't insure unless you have.
Work can be done to prevent flooding as well. There was a massive flood in BC Canada during a huge storm a few years ago causing billions in damage. Some of that disaster was because on the US side they wouldn't upgrade one of the anti flooding measures that impacted our side of the border.
It's going to cost an enormous amount of money, but thats the cost if having ignored the scientists for decades on climate change for many of these problems.
Here's a thought: don't live where hurricanes tend to go.
Sure, we're just going to need 50 million or so new affordable houses, and to double the trade costs of all international goods and commodities.
If you think gas is expensive now, wait till they have to move all the shipping and refining.
Yeah I mean, just argue why you shouldn't do that.
I'm sure the warming climate gives a shit.
Maybe we'll just rebuild Puerto Rico every year? Then miami. Lol.
There's a reason they say climate change will DISPLACE people.