$1,021 Savings on insurance

themann1984 · 09-23-2011, 05:28 PM

Here are my observations.

1. Auto insurance companies typically target loss ratios of 60% to 70%. That means that for every dollar you spend on auto insurance only 60 to 70 cents are paying for expected losses. Thus, you are better off with higher deductibles. As the difference in price is not just your expected losses, but your expected losses plus company expenses and profit.

For home insurance, the loss ratios are even lower, 40% to 50%.

I apologize if I sound like a jerk-face. But if you can't afford to hold a few grand in cash you probably can't really afford a 30 to 40 thousand dollar sports car. And to satisfy my lender, I kept more than my deductible in an account with them. That way they knew I could pay my deductibles. Your lender should understand the idea of collateral.

2. Take your savings in deductibles and get higher BI limits. You should have nothing less than 100/300 or preferably 500/500. If you have left over cash, get a personal umbrella policy or excess liability policy. Even if you don't have the assets to pay for a large liability claim the courts can still garnish your future wages. Get high limits!

3. Massachusetts is the worst auto insurance market the in country. The state pretty much tells companies what to charge. As a result, you can't get insurance from most of the big companies (Allstate, State Farm, etc.). You can only purchase from small companies that operate only in Massachusetts because it is such a niche market. Savings like that aren't going to be seen in many other locations.

California, is not much better. Write your local government representatives and demand that they reduce rate regulation. It will increase competition and drive down prices!

4. Shop around! Insurance rates are like a piece of paper floating in space. Your rate can vary by where you land on the paper, the shape of the paper, and the height of the paper. Each company has a different paper and the papers vary by state. Heck, the paper even varies within state and company as some companies may close a book of business and only renew the current insureds. Then they make a new paper for new business. The most profitable customers for an insurance company are the ones that just stay with them the longest.

5. The 370Z is pure sex! It is hot, loud, and rough!

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09-23-2011, 05:28 PM	#19 (permalink)
themann1984 Base Member Join Date: Apr 2009 Location: Overland Park, KS Posts: 100 Drives: 09 370Z Yellow M6 Rep Power: 18	Here are my observations. 1. Auto insurance companies typically target loss ratios of 60% to 70%. That means that for every dollar you spend on auto insurance only 60 to 70 cents are paying for expected losses. Thus, you are better off with higher deductibles. As the difference in price is not just your expected losses, but your expected losses plus company expenses and profit. For home insurance, the loss ratios are even lower, 40% to 50%. I apologize if I sound like a jerk-face. But if you can't afford to hold a few grand in cash you probably can't really afford a 30 to 40 thousand dollar sports car. And to satisfy my lender, I kept more than my deductible in an account with them. That way they knew I could pay my deductibles. Your lender should understand the idea of collateral. 2. Take your savings in deductibles and get higher BI limits. You should have nothing less than 100/300 or preferably 500/500. If you have left over cash, get a personal umbrella policy or excess liability policy. Even if you don't have the assets to pay for a large liability claim the courts can still garnish your future wages. Get high limits! 3. Massachusetts is the worst auto insurance market the in country. The state pretty much tells companies what to charge. As a result, you can't get insurance from most of the big companies (Allstate, State Farm, etc.). You can only purchase from small companies that operate only in Massachusetts because it is such a niche market. Savings like that aren't going to be seen in many other locations. California, is not much better. Write your local government representatives and demand that they reduce rate regulation. It will increase competition and drive down prices! 4. Shop around! Insurance rates are like a piece of paper floating in space. Your rate can vary by where you land on the paper, the shape of the paper, and the height of the paper. Each company has a different paper and the papers vary by state. Heck, the paper even varies within state and company as some companies may close a book of business and only renew the current insureds. Then they make a new paper for new business. The most profitable customers for an insurance company are the ones that just stay with them the longest. 5. The 370Z is pure sex! It is hot, loud, and rough!