NC Auto Insurance Increase

MarcusMcRae · **Posted:** Wed Apr 09, 2008 10:22 pm

http://wral.com/news/local/politics/story/2710834/

Send an email to your state representative ASAP! http://www.ncleg.net/homePage.pl

BriceJohnson · **Joined:** Thu Apr 13, 2006 7:33 am **Posts:** 2230

I'm not so sure that this is necessarily a bad thing. I've only read that article about it, so that my only background, but the idea that I'm paying a surcharge to fund risky drivers kind of bothers me (my insurance record is clean). You might think that "oh, insurance companies are going to make bigger profits though", but I'm fairly confident that the market will keep that from happening, competition for car insurance is pretty cut-throat. Generally, when the government intervenes to set prices on ANYTHING, they screw it up.

Richard Casto · **Posted:** Thu Apr 10, 2008 8:57 am

BriceJohnson wrote:

I'm not so sure that this is necessarily a bad thing. I've only read that article about it, so that my only background, but the idea that I'm paying a surcharge to fund risky drivers kind of bothers me (my insurance record is clean). You might think that "oh, insurance companies are going to make bigger profits though", but I'm fairly confident that the market will keep that from happening, competition for car insurance is pretty cut-throat. Generally, when the government intervenes to set prices on ANYTHING, they screw it up.

Just to play devils advocate and using same info from that article...

So we are going to go from sixth lowest in rates in the US to where? Does the insurance companies usually ask the insurance commision to lower rates or raise rates?

MarcusMcRae · **Posted:** Thu Apr 10, 2008 9:01 am

It's a bad idea. The insurance companies asked for a 13% increase in rates for this year after having 0% increase for 2007. I think the insurance commision has been doing a pretty decent job.

Richard Casto · **Posted:** Thu Apr 10, 2008 9:02 am

I am also reading between the lines here, but if we don't provide the subsidies for those who can’t get insurance (bad driving record), does that mean that the companies no longer have to provide insurance to these people. And if that happens do we increase the number of uninsured drivers on the road? What is the current impact on your rates with regards to accidents from uninsured drivers? Who pays for that? I assume it is your policy holder? So, it’s not like the subsidies go away, but rather than the government managing them (not saying that’s a good thing at all) it is just buried in your bill and you just see a higher rates?

clinehall · **Posted:** Thu Apr 10, 2008 9:31 am

No use getting your panties in a wad. This has no chance of happening. Jim Long is a political King Kong. Even though he is stepping down after a 24 year reign he has hand picked his successor to run on the Democratic Ticket. You will probably see a forced decrease (which will result in court cases and you probably won't ever see it actually happen) before the election to cement votes. This has happened ever 4 years since 1984. I can't even remember the democrat or the republicans name (he does own and run a muffler shop so I guess he's qualified :lol:

) but I would be totally suprised if there are any sweeping changes.

Right now the system works pretty well, rates are a function of a dance the companies have with the INsurance Commissioners office. Ask for one thing in the area of an increase and start charging, law suites begin, the rate is either upheld or not. If not you get a little refund. Repeat.

You are probably going to be seeing rate increases in the next couple of years as we have been in an extremely soft market, meaning the companies are out there fighting for the customers as things have been very profitable lateley. Last year the insurance industry spent 3.8 Billion (with a B) on advertising, everybody is dropping rates to keep and get new customers. IMHO this can only last so long, eventually it will catch up. I have seen a couple of my auto companies go from very profitable to marginally profitable. One of the biggest advertisers has realized that they screwed the pooch and have done an about face on homeowners rates and is about putting them out of the market in eastern NC. Probably not effecting you guys in raleigh yet though.

I am finished rambling.

Bernie Baake · **Posted:** Thu Apr 10, 2008 10:07 am

BriceJohnson wrote:

I'm not so sure that this is necessarily a bad thing. I've only read that article about it, so that my only background, but the idea that I'm paying a surcharge to fund risky drivers kind of bothers me (my insurance record is clean). You might think that "oh, insurance companies are going to make bigger profits though", but I'm fairly confident that the market will keep that from happening, competition for car insurance is pretty cut-throat. Generally, when the government intervenes to set prices on ANYTHING, they screw it up.

I'm not sure this a bad thing either----I'm freaking positive it's a bad thing for the consumer. Anytime an insurance company pays a claim that loss is calculated into next years rate. So in effect your always paying for the high risk motorist. Under the state insurance commision we are sixth lowest in the country, is anyone foolish enough to believe that left to their own devices that the insurance companies will lower our rates???? Look at the OIL industry thats called GOOD business, the ins. co. will do the same if we let them. We pay on the average of $600 per car other states are over a thousand, where is the competition to drive these prices down??? Its a good theory Brice, but as soon as a state makes it manditory to have insurance the competition goes out the window and prices go up, unless its regulated.

clinehall · **Posted:** Thu Apr 10, 2008 10:35 am

Hmm, my portfolio is basically insurance and oil stocks.

RobLupella · **Posted:** Fri Apr 11, 2008 9:44 pm

Bernie Baake wrote:

BriceJohnson wrote:

I'm not so sure that this is necessarily a bad thing. I've only read that article about it, so that my only background, but the idea that I'm paying a surcharge to fund risky drivers kind of bothers me (my insurance record is clean). You might think that "oh, insurance companies are going to make bigger profits though", but I'm fairly confident that the market will keep that from happening, competition for car insurance is pretty cut-throat. Generally, when the government intervenes to set prices on ANYTHING, they screw it up.

I'm not sure this a bad thing either----I'm freaking positive it's a bad thing for the consumer. Anytime an insurance company pays a claim that loss is calculated into next years rate. So in effect your always paying for the high risk motorist. Under the state insurance commision we are sixth lowest in the country, is anyone foolish enough to believe that left to their own devices that the insurance companies will lower our rates???? Look at the OIL industry thats called GOOD business, the ins. co. will do the same if we let them. We pay on the average of $600 per car other states are over a thousand, where is the competition to drive these prices down??? Its a good theory Brice, but as soon as a state makes it manditory to have insurance the competition goes out the window and prices go up, unless its regulated.

Yeah, competition will drive prices down - bs. They will all compete at the same level only the level will be higher. I don't want to pay for the really bad drivers either, but the way to stop them is to get them off the road or give them real driver training.. Raising rates for everyone is bullshit communist stuff. (tip of the cap on the "communist" to my friend Graham :wink:

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