Unlike others, I won't throw the blame at the "greedy" insurance companies. I don't like high premiums either ... but I've seen enough insurance payouts (not personally) to realize why the rates go up. Yes, I've seen all the stories (and notes here too) about people who've had no claims in 20+ years and now their insurance is going up.
Now ... let's look at the other side. Did you see the news over the past few years about some less wealthy "names" (which is what Lloyd's calls their shareholders) trying to sue Lloyds of London? They were incensed because they suddenly discovered that after years of modest gains, they were suddenly being asked to provide millions of dollars to help Lloyds pay off a few fabulously large claims. Many were being forced to spend every penny they had - including mortgaging or selling their homes.
Let's look at the jury awards - especially in Texas - for accidents, product liability and the like. Texas is where every litigant wnats their case heard. Can you say "breast implants?" Who do you think pays for those after they lose the appeals? Hmm ... the insurance companies? And where are the insurance companies supposed to get the money? They're not allowed to print it like our government ... it comes from premiums.
So, where do I lay the blame? Greedy lawyers, ignorant and uneducated juries, judges who wouldn't recognize science if it bit them in the posterior.
High car premiums for kids? Hmm - wonder why ... maybe it has something to do with the accidents and deaths caused by younsters getting their first real taste of freedom and power?? Read your local paper - if they're anything like mine, they show all the accidents, drunk driving charges, etc. Watch the traffic when you drive .... traffic is getting more and more aggresive and a pretty fair percentage is youngsters in cars way too powerful for them. The cars are more expensive and hence the payouts to repair or replace are higher and higher. I just found out that a replacement windshield for my bitty motorhome is $1700 (Cdn). If I put in a claim ... I pay $50 and they pay about $1100 (US). My premium, in total is only $425 a year .... do the math.
Persoanlly, I wish they'd have those kind of premiums here ($8000/yr) instead of this bullcrap no-fault insurance we're stuck with .... no-fault makes it easy for insurance companies to insulate themselves from the wrath of poor drivers, but I dislike paying for others poor habits. For example, my brother-in-law would not be able to afford to drive if he were anywhere else besides Saskatchewan ... way too many accidents and tickets. But, since they have no-fault (and worse - government sponsored) insurance there .... he's still paying less than I am.
Let's put the blame where it belongs ... and that ain't the big bad bogeyman insurance companies .... it's the consumer, the juries and worst of all, the litigators who're causing this.
<soapboc off>
