Insurance Cost

[DeeEE!]

Read the other thread from earlier this week about insurance, and it got me thinking about my experience. My home and auto that is bundled has gotten sky high. On top of that, my provider has mailed me a written statement indicating that my wind storm and hail peril deductible is now 2% or roughly $7,800 dollars. Basically I have to pay out of pocket for a new roof.

I got a new roof in 2020 and a few deer hit claims, nothing major. Haven't been dropped. I have made my mind up to switch, and have been shopping it and getting quotes from a few companies. One has the standard deductible, the other a 1% for wind storm and hail peril deductible. The yearly and monthly cost are cheaper, along with the deductible. My homeowners is going to be about 500 a year cheaper and my auto 50 a month cheaper.

Anyone else getting similar? I was told expect all insurance companies to follow suite with the 1 or 2% deductible for wind and hail.

 

[dawgman42]

What state? This sounds a lot like Tay-haas.

 

[DeeEE!]

What state? This sounds a lot like Tay-haas.

Mississippi

 

[Rezdog]

Yes, the insurance market is a mess right now. I know everyone likes to hate insurance but the amount of roof claims paid over the last several years were astronomical. Also, you can't drive anywhere and not see people in their cars staring at their phones. Distracted driving is wreaking havoc on the insurance industry.

 

[o_dawgflo]

I'm shopping right now, as well. Most companies are close to the same OR are a few bucks cheaper for auto and 1000 more expensive (per year) for home. I've never claimed on my home and have a couple tickets between the Mrs. and I. Insurance is an absolute joke.

 

[WilCoDawg]

Yes, the insurance market is a mess right now. I know everyone likes to hate insurance but the amount of roof claims paid over the last several years were astronomical. Also, you can't drive anywhere and not see people in their cars staring at their phones. Distracted driving is wreaking havoc on the insurance industry.

That should be put on that particular driver, NOT the rest of us. That’s like a guy getting busted with drugs and making the rest of us go on probation and doing urine tests monthly.

 

[DeeEE!]

Also now is a great time to remind everyone, have a dashcam! We live in a time where you have prove everything.

 

[Rezdog]

That should be put on that particular driver, NOT the rest of us. That’s like a guy getting busted with drugs and making the rest of us go on probation and doing urine tests monthly.

Sounds logical but not how it works. Law of large numbers. It's not a matter of if but when you're going have a claim. Insurance companies use predictive modeling to determine loss activity and cost. That cost is spread across the masses but people with higher claim activity will absolutely pay higher rates.

 

[Rezdog]

Also now is a great time to remind everyone, have a dashcam! We live in a time where you have prove everything.

More and more insurance companies are providing discounts via telematic data from driving behaviors. Every big truck on the highway now has a form of telematics.

 

[The Cooterpoot]

Insurance of all types needs regulating. It's out of control! It's becoming a big rip off!

 

[mstateglfr]

Insurance of all types needs regulating. It's out of control! It's becoming a big rip off!

Interesting.

 

[mstateglfr]

Distracted driving is wreaking havoc on the insurance industry.

Are the major common insurance companies hurting financially or are has the industry as a whole set record profits in '22 and '23, and '24 was tracking to exceed '23?

Handling more claims and charging more sounds more like just having a robust business model.

 

[Rezdog]

Are the major common insurance companies hurting financially or are has the industry as a whole set record profits in '22 and '23, and '24 was tracking to exceed '23?

Handling more claims and charging more sounds more like just having a robust business model.

100% agree. I'm on your side. I don't work for a carrier, I'm an agent. I fight with carriers every single day. However, insurance companies are a for profit business. You can always self insure to reduce cost if you don't like it.

 

[GloryDawg]

The cost of replacing a roof or fixing a wreck car has skyrocketed the past four years. They are not a nonprofit organization. Cost is going to be passed on. My homeowners went up to 3200 from 1200.00. It was paid. I asked my agent why it went up. He said my roof was really old. He sent a roofer, and it had hail damage. The roofer ate the deductible and the insurance company gave me 900.00 back from my premium. I had a new roof and premium refund and there was not out of pocket.

 

[AROB44]

I'm impressed that you can get a new roof for $7,800. I got a new one in 2020 and it cost me about double that.

 

[greenbean.sixpack]

USAA is high as a cat's back, but they pay. A few years ago a hail storm hit my neighborhood. USAA paid me more than what a new roof cost, neighbors with State Farm fought them for months. Even though I could get lower premiums elsewhere I'm sticking with them.

 

[3407Dewey]

I'm impressed that you can get a new roof for $7,800. I got a new one in 2020 and it cost me about double that.

Getting a new one now and it’s over $19k. And not a huge house.

 

[greenbean.sixpack]

I'm impressed that you can get a new roof for $7,800. I got a new one in 2020 and it cost me about double that.

Mine was over $20k and I doubt many of the army of workers had legal status in the US. Look for prices to climb.

 

[RocketDawg]

Read the other thread from earlier this week about insurance, and it got me thinking about my experience. My home and auto that is bundled has gotten sky high. On top of that, my provider has mailed me a written statement indicating that my wind storm and hail peril deductible is now 2% or roughly $7,800 dollars. Basically I have to pay out of pocket for a new roof.

I got a new roof in 2020 and a few deer hit claims, nothing major. Haven't been dropped. I have made my mind up to switch, and have been shopping it and getting quotes from a few companies. One has the standard deductible, the other a 1% for wind storm and hail peril deductible. The yearly and monthly cost are cheaper, along with the deductible. My homeowners is going to be about 500 a year cheaper and my auto 50 a month cheaper.

Anyone else getting similar? I was told expect all insurance companies to follow suite with the 1 or 2% deductible for wind and hail.

After the hurricanes and California fires, I expect they all will go up. I had to get a new roof (and some other damage from the storm) just over year ago due to storm damage and the deductible was 1%. State Farm. My thought is to stick with the same company and they'll treat you better in case of a claim, but that may not be right.

 

[civildawg88]

100% agree. I'm on your side. I don't work for a carrier, I'm an agent. I fight with carriers every single day. However, insurance companies are a for profit business. You can always self insure to reduce cost if you don't like it.

But you can't self insure with auto or home if you have a mortgage, which probably 90% of the people have

 

[horshack.sixpack]

After the hurricanes and California fires, I expect they all will go up. I had to get a new roof (and some other damage from the storm) just over year ago due to storm damage and the deductible was 1%. State Farm. My thought is to stick with the same company and they'll treat you better in case of a claim, but that may not be right.

They run through cycles. If you have everything with one you can always shop around and maybe get a better rate but is suspect over a 5 yr cycle it evens out if you just stayed. They are reacting to insurance claims but also investment horizons, cash management, etc. sometimes for various reasons they don’t want to write on certain lines or in certain areas. Kind of like banks sometimes are wanting deposits and sometimes they are running them off.

 

[ezsoil]

I don't know if I should admit this but I was in senior management at one of the big three and what you have to understand is that AI is driving all decisions. I retired 12 years ago and even then we had been using data driven algorithms to determine risk selection and pricing .... what is completely gone is any sort of empathy or human decision making ...because each state has their own rules, it is impossible to spread the risk across state lines ....the problem you have in Mississippi is there is a limited number of people to spread the risk.

 

[was21]

USAA is high as a cat's back, but they pay. A few years ago a hail storm hit my neighborhood. USAA paid me more than what a new roof cost, neighbors with State Farm fought them for months. Even though I could get lower premiums elsewhere I'm sticking with them.

USAA is the highest rated insurance company in the United States. Yes it is high but you get what you pay for. Of course, you have to be eligible based on military service but not necessarily your own service. Check it out

 

[HotMop]

I shopped around for home insurance and got a quote for $21k. WTF

 

[patdog]

Getting a new one now and it’s over $19k. And not a huge house.

Mine was $17,000 a couple of years ago. I was expecting $10,000-$12,000. It’s crazy. But I had replacement cost coverage so I just paid the $5,000 deductible to replace my 20 year old roof. Hope we have another big storm in about 15 - 20 years.

 

[patdog]

But you can't self insure with auto or home if you have a mortgage, which probably 90% of the people have

You can self insure for your car, but always carry liability insurance. The legal limit isn’t nearly enough. As for home, even without a mortgage, you better insure for catastrophic. My current deductible is $5,000. But if premiums keep going up (I’m sure they will), I could see increasing that to $20,000 or so.

 

[patdog]

USAA is the highest rated insurance company in the United States. Yes it is high but you get what you pay for. Of course, you have to be eligible based on military service but not necessarily your own service. Check it out

My experience is it’s not that high. But when shopping for insurance, remember #1 factor is how well they pay. You may regret going with the lowest premium if/when you ever need that insurance.

 

[patdog]

I shopped around for home insurance and got a quote for $21k. WTF

Holy crap! Mine is about $1,600. You must have a much nicer house than I do.

 

[HotMop]

Holy crap! Mine is about $1,600. You must have a much nicer house than I do.

Probably not, just closer to the Gulf of America than most. Can't get decent insurance in Florida with these friggin' hurricanes.

 

[patdog]

Probably not, just closer to the Gulf of America than most. Can't get decent insurance in Florida with these friggin' hurricanes.

Yikes. Florida is an insurance nightmare. I thought about buying a condo on Dauphin Island a few years ago. Figured I could cash flow it as a rental & have a free place to stay a few weekends a year. But hurricane risk scared me off. I’m glad I didn’t buy it.

 

[kired]

I shopped around for home insurance and got a quote for $21k. WTF

$21k premium? HoLeeShit

And I thought mine was bad at $7k. Insurance said my roof was too old, so filed a claim for hail damage and they replaced it. Figure I’ve got one more roof replacement in my lifetime and that one will probably come out of pocket - I’m sure they’ll cut out these hail damage claims soon.

 

[dorndawg]

Pro-tip to all my fellow sixpackers: if you don’t have an umbrella policy, talk to your agent next time you’re renewing. You can get a helluva lot for about $250 a year, it’s great for my piece of mind.

 

[Maroon13]

My thoughts as well...

 

[horshack.sixpack]

Pro-tip to all my fellow sixpackers: if you don’t have an umbrella policy, talk to your agent next time you’re renewing. You can get a helluva lot for about $250 a year, it’s great for my piece of mind.

Mine advised me against. Said he didn’t see the value. Odd…

 

[Rezdog]

But you can't self insure with auto or home if you have a mortgage, which probably 90% of the people have

You can with higher deductibles. But you normally don't get similar ROI on the risk with higher deductibles. Although, some banks will require a certain deductible. I'm a commercial P&C agent. We've been seeing 2-5% wind and hail deductibles in Jackson. We then use a Lloyds program to buy difference in deductible back down to something more reasonable. Problem is, carriers are not giving breaks on rates. Just adding W/H deductibles.

 

[DeeEE!]

One of the things I was told by my current provider, that my room being 5 years old is what triggered the 2% deal. Anyone heard similar? For “fire, mold, lighting” perils, it’s still 1,000 deductible.


my homeowners went from $ 850 in 2016 to $3,000 in 2025. Same house, obviously the house value has increased throughout the years.

I agree with with everyone else. The roof claims are out of control. Some (not all) of roof claims involve some amount of insurance fraud. What is so frustrating is seeing people like my parents with State Farm who have had them their whole life, only to get denied hail claim. Every roof in the subdivision got a new roof. On the flip side I know other companies that have replaced roofs no questions asked basically. It is messed up.

I will never have State Farm.

 

[DeeEE!]

Getting a new one now and it’s over $19k. And not a huge house.

Mine was over $20k and I doubt many of the army of workers had legal status in the US. Look for prices to climb.

I should have given more details. In 2020 my roof replacement cost was about $12,000 and I had 1,000 deductible. I guess what I was trying to say is now I will pay 7,800 which is still cheaper than a new roof, but basically paying a large portion of the new roof. I’m sure the same roof maybe 20k now so probably half the cost.

 

[DeeEE!]

I was talking with a Body Shop owner and he said Alfa is great on auto claims. He said Progressive, Allstate are some of the worst.

Speaking of AI, @ezsoil mentioned it.

I actually know of a person who got their homeowners canceled because of a drone that flew overhead. Said their retaining wall that had failed in their back yard needed to be corrected in order to be insured.

Also the body shop guy said more and more companies are using AI and getting folks to use their camera on their phone to “take pics” and get an estimate.

A lot of time the entire process is automated. The pictures are uploaded, analyzed and an estimate is spit out. Even if you protest the amount, a lot of times you get the check regardless because very few humans are actually reviewing it.

You can tell me a iPhone pic is better than someone inspecting your car physically. He said there’s a lot of push for this technology, but when there’s additional damage, like a subframe, it’s a nightmare to get any real person to agree to the change orders. This plus the push to use non-oem parts is what makes the entire process miserable.

It’s An interesting time we live in.

 

[skipperDawg]

Orange beach says hold my beer

 

[HotMop]

$21k premium? HoLeeShit

And I thought mine was bad at $7k. Insurance said my roof was too old, so filed a claim for hail damage and they replaced it. Figure I’ve got one more roof replacement in my lifetime and that one will probably come out of pocket - I’m sure they’ll cut out these hail damage claims soon.

My current rate is $6700 but I was shopping around for a better rate. It was about $1500 before Hurricane Michael.