We need to decrease the cost of auto insurance not keep increasing it. It’s as if you’re saying only the rich can afford to drive. Those of us on fixed incomes cannot afford another increase. Didn’t they just get an increase last year?? Enough is enough.
That would be nice for everyone wouldn’t it? The problem is that the Risk Pool that the NCRB is asking for an increase in, is not breaking even due to experienced losses. That is due to things like economic inflation, increased cost of repair in new vehicles, an increase in fraud, etc. Also consider that NC is rated as having the lowest Auto Insurance rates in the nation as of this year.
Not necessarily true because that doesn’t consider the Recoupment or Facility vehicle. Approx 30% of the vehicles in NC are reinsured thru the Reinsurance Facility (high risk pool), which is the largest “insurer” in the State. In fact it has more autos in its pool than all other states combined. Because the Facility is not charging adequate premium for the risk, everyone else in the state has to pay on their policy to “recoup” the loss. The recoupment has gone up twice in the past year and is set to go up again (10% charge currently). Higher risk drivers don’t pay their fair share in this state. (funny, they made it a law that insurers cannot even disclose the itemized recoupment on the renewals). It’s getting to the point where its like Universal Auto insurance, a la Universal Healthcare in this state. If insurers cannot get the rate to match the risk, just cede it to the Facility. Good drivers subsidize the higher risk.
I don’t think we are necessarily disagreeing but thank you for including additional reasons to argue for an increase. The State won’t let them increase the pool but by so much which continues to drive the need for the recoupment. If the Facility were properly priced, there would be little to no need for recoupment. It really is an unfortunate circle due to the parasitic like nature of the facility. However, the prices are still cheapest of surrounding states.
How about you do some research and make CELL PHONE USE IN VEHICLES ILLEGAL – duh!!! Perhaps THAT will prevent some of these increased crashes/accidents!
I mean really, you bafoons are putting a mask over the effect instead of addressing the freakin CAUSE…typical US of A legislators and powers that be slapping a mask over the actual problems with increased rates, taxes, etc….money will surely fix the problem. GREED from big business at its finest right here..sigh.
Good point but incredibly hard to police in reality. You have to look to the phone companies and makes to make the phone useless during travel. Apple is one such company adding this to their upcoming iOS11.
Rates are based on number of cars and drivers in a household, but crudely. When number of cars exceeds number of drivers, a discount should apply to reflect less driving per car. A household with 3 cars and 2 drivers should pay no more for liability than a household with 2 cars and 2 drivers.
Good idea but almost impossible in execution by actuarial measure. The underlying problem is that a lot of insurance companies have to deal with undisclosed drivers of vehicles and insureds trying to hide drivers from rating due to how they drive, past DUIs, tickets, accidents, etc. This limits the discounts they really want to apply at the end of the day. A lot of carriers do have multicar discounts though, but not ones that look at vehicle to driver ratios.
I agree wholeheartedly with Sherri L. I have never had an accident, do not drink and drive, tech, put on makeup or any of the other foolish things people do while behind the wheel, yet my rates keep going up. I live in the far western town of Hayesville with one stop light and one blinker. Obviously, not much traffic, but still these almost annual rate increases. What happened to people in certain zip codes being able to get lower rates? I presume BECAUSE they do live in what could only be termed a rural area they might be entitled to some relief due to not living east of Asheville.
I recommend shopping your policy. NC used to set the territories that insurers had to use when applying rate (can’t remember if this is still true). Sometimes, carriers experience a need for an increase in rate even in these “sleepy” towns due to experience in fraud, a uptick in losses driven by weather, deer claims, etc. Again, if your insured is increasing your premiums, exercise your right to shop!
For those who complain about annual rate increases, how much did your premium increase by year? 2%? 3%, not much more than that. Companies have been filing for increases of more than 10% for years and they have all been denied by the commish. Then the commish crows about how NC has the lowest rates in the country. That might be the case until you include the recoupment. the fact is that rates are artificially low because high risk driver premiums are capped and subsidized. You have to get the right apples to make a comparison, not just the FILED rates but the WHOLE policy premium including the recoupments, now you can compare and complain about the big increases you see.
“Companies have been filing for increases of more than 10% for years and they have all been denied by the commish.”
This is quite untrue. First and foremost, it is up to the company to prove their need for rate actuarially. Second, several companies have filed for and gained approval for 10%+ rate increases. One company even had one approved for 29%. Finally, most surveys are based on rated risks and overall ending premium. They will take a risk profiles and back it through different companies to come to that premium amount. NC is always at the bottom or in the bottom 5 based on that which includes recoupment which are built into the rating algorithms and provided in the quote. I am first to admit that the current setup needs some repair here and there but the fact that the bureau and facility exist only help the overall picture in the state.
We need to decrease the cost of auto insurance not keep increasing it. It’s as if you’re saying only the rich can afford to drive. Those of us on fixed incomes cannot afford another increase. Didn’t they just get an increase last year?? Enough is enough.
That would be nice for everyone wouldn’t it? The problem is that the Risk Pool that the NCRB is asking for an increase in, is not breaking even due to experienced losses. That is due to things like economic inflation, increased cost of repair in new vehicles, an increase in fraud, etc. Also consider that NC is rated as having the lowest Auto Insurance rates in the nation as of this year.
Not necessarily true because that doesn’t consider the Recoupment or Facility vehicle. Approx 30% of the vehicles in NC are reinsured thru the Reinsurance Facility (high risk pool), which is the largest “insurer” in the State. In fact it has more autos in its pool than all other states combined. Because the Facility is not charging adequate premium for the risk, everyone else in the state has to pay on their policy to “recoup” the loss. The recoupment has gone up twice in the past year and is set to go up again (10% charge currently). Higher risk drivers don’t pay their fair share in this state. (funny, they made it a law that insurers cannot even disclose the itemized recoupment on the renewals). It’s getting to the point where its like Universal Auto insurance, a la Universal Healthcare in this state. If insurers cannot get the rate to match the risk, just cede it to the Facility. Good drivers subsidize the higher risk.
I don’t think we are necessarily disagreeing but thank you for including additional reasons to argue for an increase. The State won’t let them increase the pool but by so much which continues to drive the need for the recoupment. If the Facility were properly priced, there would be little to no need for recoupment. It really is an unfortunate circle due to the parasitic like nature of the facility. However, the prices are still cheapest of surrounding states.
How about you do some research and make CELL PHONE USE IN VEHICLES ILLEGAL – duh!!! Perhaps THAT will prevent some of these increased crashes/accidents!
I mean really, you bafoons are putting a mask over the effect instead of addressing the freakin CAUSE…typical US of A legislators and powers that be slapping a mask over the actual problems with increased rates, taxes, etc….money will surely fix the problem. GREED from big business at its finest right here..sigh.
Good point but incredibly hard to police in reality. You have to look to the phone companies and makes to make the phone useless during travel. Apple is one such company adding this to their upcoming iOS11.
Rates are based on number of cars and drivers in a household, but crudely. When number of cars exceeds number of drivers, a discount should apply to reflect less driving per car. A household with 3 cars and 2 drivers should pay no more for liability than a household with 2 cars and 2 drivers.
Good idea but almost impossible in execution by actuarial measure. The underlying problem is that a lot of insurance companies have to deal with undisclosed drivers of vehicles and insureds trying to hide drivers from rating due to how they drive, past DUIs, tickets, accidents, etc. This limits the discounts they really want to apply at the end of the day. A lot of carriers do have multicar discounts though, but not ones that look at vehicle to driver ratios.
I agree wholeheartedly with Sherri L. I have never had an accident, do not drink and drive, tech, put on makeup or any of the other foolish things people do while behind the wheel, yet my rates keep going up. I live in the far western town of Hayesville with one stop light and one blinker. Obviously, not much traffic, but still these almost annual rate increases. What happened to people in certain zip codes being able to get lower rates? I presume BECAUSE they do live in what could only be termed a rural area they might be entitled to some relief due to not living east of Asheville.
I recommend shopping your policy. NC used to set the territories that insurers had to use when applying rate (can’t remember if this is still true). Sometimes, carriers experience a need for an increase in rate even in these “sleepy” towns due to experience in fraud, a uptick in losses driven by weather, deer claims, etc. Again, if your insured is increasing your premiums, exercise your right to shop!
For those who complain about annual rate increases, how much did your premium increase by year? 2%? 3%, not much more than that. Companies have been filing for increases of more than 10% for years and they have all been denied by the commish. Then the commish crows about how NC has the lowest rates in the country. That might be the case until you include the recoupment. the fact is that rates are artificially low because high risk driver premiums are capped and subsidized. You have to get the right apples to make a comparison, not just the FILED rates but the WHOLE policy premium including the recoupments, now you can compare and complain about the big increases you see.
“Companies have been filing for increases of more than 10% for years and they have all been denied by the commish.”
This is quite untrue. First and foremost, it is up to the company to prove their need for rate actuarially. Second, several companies have filed for and gained approval for 10%+ rate increases. One company even had one approved for 29%. Finally, most surveys are based on rated risks and overall ending premium. They will take a risk profiles and back it through different companies to come to that premium amount. NC is always at the bottom or in the bottom 5 based on that which includes recoupment which are built into the rating algorithms and provided in the quote. I am first to admit that the current setup needs some repair here and there but the fact that the bureau and facility exist only help the overall picture in the state.
^For clarity, those rate changes were all effective in the last 12 months.