Cost of living
Monday, May 17, 2010
My insurance premiums for my car and homeowner are going up next week, over $20 a month from what I currently pay.
The reasons: for my car, because I got a ticket (in which I wasn’t guilty, went to court and lost). When asking why insurance goes up when getting a ticket, the answer — that’s the way it is. For my house, because last year the company had so many claims, they need to cover those expenses and they pass the costs to the policyholders. Those were the words my insurance agent told me. Because of that, my mortgage went up another $20 a month.
When requesting quotes, looking for cheaper insurance, one company turned me down because I had a small claim on the house a couple of years ago. Another one did it because the house’s roof has starting to show some aging, and they won’t take any risks.
To me, these companies’ priorities are to make money; the policyholders’ protection may come next. Every month they want the money exactly on the due date; if you fall behind, they’ll cancel your coverage, but when you file a claim, it takes forever to get a check from them.
Funny thing is, my car and the house are getting older each year, their value is less, because of the economy my income is less, but to insure my valuables is more expensive.
Thanks to you insurance companies, I have to rebalance my monthly budget, making sure that $40 a month starts going into your pockets from now on, instead of buying food for my kids.
M.L. Gonzalez
Emporia
Guessler (anonymous) says...
How true, unfortunately these companies just care about their finances, they just look for ways for how to make more money, it's annoying that they try to sell you even more products every time you visit their offices.
May 17, 2010 at 1:25 p.m. ( permalink | suggest removal )
booker5m (anonymous) says...
With Obama telling everyone they have to buy insurance. These companies with get richer
May 17, 2010 at 1:57 p.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
"To me, these companies’ priorities are to make money"
As I read these words I was troubled. I realized that I, like these "companies", also am motivated by money and money making when I go to work. I want my company to make money and succeed so that I will get paid for it. I realize now how selfish that is and am going to tell the company I work for that I want a pay cut or perhaps only get paid for every other day. What is the world coming to when companies and individuals want to succeed and make money? What do they think this is? A capitalist society? Health insurance, life insurance, home owners insurance, renters insurance, car insurance, cell phone insurance, steak knife insurance etc. are our right!!!!
May 17, 2010 at 2:16 p.m. ( permalink | suggest removal )
booker5m (anonymous) says...
Got a notice today my heatlh care supplement is going up over $17 a month.At least use a gun I would feel better!
May 17, 2010 at 2:25 p.m. ( permalink | suggest removal )
joejoe2 (anonymous) says...
The insurance company is a "for profit" company. I say self insure if you dont like a company trying to make a profit. I bet you didnt complain about what they were charging you when you had your claim a couple of years ago.
May 17, 2010 at 2:25 p.m. ( permalink | suggest removal )
allintogether (anonymous) says...
If you get a speeding ticket then your auto insurance rates should go up until the ticket goes off of your record usually in 3 years. The only problem is that if the rate goes too high then most people will just go without insurance and play the odds that the cops will not find out. If the homeowners insurance company jacks up your rates for something out of your control like too many claims somewhere else I would be looking for another company. Only problem is there are few alternatives due to the empires that have been built in the industry.
Insurance companies stopped caring about customers a long time ago. Sure they have to deal with some less than scrupulous people in the cases of fraud, but they still make huge profits. We live in a capitalist society and I am damn glad we do. I have no problem with huge profits as long as you are living up to your responsibility to your customers. A friend of mine in the industry told me that they are taking in 50% more premium and paying out 60% less in claims.
I don't see why citizens of a community the size of Emporia can't create an LLC or even a 501c3 that takes in fixed premiums (that can't escalate more than 1-3% year to year) and will limit itself to a 10-15% (depending on performance) profit margin year to year to pay bonuses for EXCELLENT management. Start small and let it grow and I bet they would be able to cover every blade of grass in Emporia in 5 years if they managed it right, didn't promise the moon and the government doesn't screw it up by involving itself in any way. Oh, they already have them. They are called co ops. Now if they just ran those correctly.
May 17, 2010 at 2:39 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
Wow. Sorry you have to pay so much more for coverage on items you would like to have replaced if destroyed. Honestly, I just figure that is the way it goes, especially if you got a speeding ticket and had a claim on your home. You want it replaced, you pay the price. I figure that $40.00 a month is a LOT cheaper than you coming up with the money for a new home or car out of pocket- if you had no insurance.
I guess I consider myself one of the lucky ones. We pay nothing for health insurance, my husband's employer covers it all, we own a 2000 car and a mobile home, and our monthly insurance (full coverage on the car and coverage for more than the house is worth) is only $160 a month.
May 17, 2010 at 6:18 p.m. ( permalink | suggest removal )
alsrac (anonymous) says...
Some of you are missing the point, we all know insurance companies are "for profit" the complaint in this letter is why they charge more if you got a ticket, not an accident (which would make understandable the increase) just a ticket or why they turn someone down because of a prior claim. BTW $160 a month for a 2000 car and a mobile home is a lot. You should complainy to your agent too.
May 17, 2010 at 8:33 p.m. ( permalink | suggest removal )
JohnDoe (anonymous) says...
Your rates go up after a speeding ticket because it's more than likely that the driver is speeding on a regular basis. Speeding enough times to get caught and getting away with it countless other times. Speeding is a risky behavior and insurance is a risk-management product. Put simply, the more you speed- the more likely you are to cause an accident - the more likely you are to damage both your car and someone elses. Resulting in thousands of dollars in damage. Not sure how you're "not guilty" on a speeding ticket that was contested, and lost, in court. Sounds like it was well earned.
Insurance companies are businesses, in business to make a profit and maintain sustainability. If they weren't it would be called a "charity." Since the author of this feels like such a victim of the "corporation," perhaps he should offer a suggestion to the company. Specifically, why should safe drivers/homeowners that maintain their property and don't cause accidents (or get tickets) pay the exact same on their monthly payments? Think of the unrest they would have if it were that way.
Finally Mr/Ms Gonzalez, our rates going up is based on mass statistics on risk and risky behaviors. Even in low risk, inflation is inevitable. You're not being singled out. It can happen to anyone. The way I see it, it's still easier than having to cough up all the money abruptly at one time.
May 17, 2010 at 10:33 p.m. ( permalink | suggest removal )
alsrac (anonymous) says...
The letter says "M.L. Gonzalez" got a ticket, why are guys assuming it was a speeding ticket? It also says he or she wasn't guilty, fought in court and lost, if he or she went to court to fight was for a reason, if she or he lost maybe it was because the judge didn't care and just took the money.
May 17, 2010 at 10:45 p.m. ( permalink | suggest removal )
oh4theluvof (anonymous) says...
I remember all those terms being in the paperwork when I signed up for homeowners and auto insurances. When I signed it, I agreed to it. When I quit agreeing to it, I will drop my insurances. When I drop my vehicle insurance, I will ride my bicycle or take public transportation everywhere.
You take what you get and you don't throw a fit.
May 17, 2010 at 11:06 p.m. ( permalink | suggest removal )
inaweoftheblindness (anonymous) says...
I know how you feel. I called over 20 health Insurance companies to get some health insurance for a single person with no health problems and the cheapest I found was $405.00 a month. The insurance agents all told me that now is the time to get the insurance because in September of this year when health insurance is mandatory, the rates will jump from $405.00 to over $650.00 a month for a single person. Both prices are really scary. I myself am not to happy with the new health reform law in effect in September 2010, I have a friend in Mass., a state that already enforces the the new health coverage law, and the fine in Mass. for not having health coverage is $900.00 for a single person and $1800.00 for family.
Insurance rates are way to high on everything, by the time I pay insurance for car, truck, house, health, and dental, I pay out more than half of my monthly income. Then the rest goes on house payments, utility bills, gas, and groceries. The end of the work month leaves me completely broke. No extras for anything but the above mentioned. It's ridiculous how these Insurance companies can get away with these sky high prices they are charging, and now Obama has made it worse, in September all Health Insurance is going to sky rocket once it becomes mandatory to have coverage. The new health care reform just made the insurance companies a whole lot richer ....Again.
May 18, 2010 at 12:38 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
A note to M.L. Gonzalez,
It sounds like the cost of insurance and property taxes on your house are included in you monthly mortgage payments.
If you want a real shock, try taking out this escrow agreement and pay your taxes and insurance with 1 check once a year.
But don't be late in paying them because then the bank or county can take them.
NOW THAT WILL REALLY TICK YOU OFF!
May 18, 2010 at 8:14 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Oh and don't forget our sales tax rate goes to 8.8% July 1st so food and utilities and clothing will cost more also.
May 18, 2010 at 8:17 a.m. ( permalink | suggest removal )
christym123 (anonymous) says...
It's fine that insurance companies want to make money. Just stop acting like you care. You dont. We had our insurance for Years without a claim. And then we called to talk to them about a possible future claim, and what they would pay on it and they dropped us. It wasnt even a big claim. A small out patient surgury. And we were not even sure we were going to do it. It was just an inquiry. Totally not "like a good neighbor"
May 18, 2010 at 10:26 a.m. ( permalink | suggest removal )