Outrageous Insurance Premiums

[Gene M.]

Has anybody received their insurance policy premium for their Corvette(s) that live in NY or NJ with big increases?

I just got mine with 25-30% increases from American Collectors. The Lady I spoke with on the phone claims that there are increases in NY and NJ insurance rates. I find it hard to believe that the state government has anything to do with insurance rates.

It sounds to me they are attempting to make up for the storm, that I do not live anywhere near.
Should I be shopping around?

[Jack C.]

Re: Outrageous Insurance Premiums

Gene. I'm in NJ and just renewed with American Collectors in March, a very small increase of a few dollars.

[Paul J.]

Re: Outrageous Insurance Premiums

...I find it hard to believe that the state government has anything to do with insurance rates....

Gene, in most states the Insurance Commission controls the rates. The Insurance Commissioner is an elected office and the board is appointed. The purpose is to provide some protection to consumers for rate increases, just like the utilities commission. The insurance companies are highly regulated regarding the types of insurance they can offer, and what they're allowed to charge for it.

In your State you have an Insurance Fund, and I have no idea how that works.

In any event, it sounds like someone may have made an error, or something significantly changed with respect to you or your policy.

Paul

[Richard E.]

Re: Outrageous Insurance Premiums

Gene,
I just renewed my 67/435 insurance with American Collectors and had maybe a two dollar increase in upstate N.Y.
Rich...

[Matthew D.]

Re: Outrageous Insurance Premiums

Yeah I'm on Long Island but no storm damage. My latest bill from American collectors went up over 25%. Already shopping around......

[Gene M.]

Re: Outrageous Insurance Premiums

I just discussed the American collectors preminum my friend just got and he said it was up $87 for one 61 vette.

I guess I don't understand why some are up so much and a few of you are saying no big increase.

[Jim D.]

Re: Outrageous Insurance Premiums

Glad I live on the west coast. No premium increase on any insurance, home, car or collector cars in many years.

[John F.]

[Jaime G.]

Re: Outrageous Insurance Premiums

Move to California. small increase in premiums this year. First increase in 5 years

[Paul J.]

Re: Outrageous Insurance Premiums

I just discussed the American collectors preminum my friend just got and he said it was up $87 for one 61 vette.

I guess I don't understand why some are up so much and a few of you are saying no big increase.

I don't know where you live, but I've already seen two collectable cars that were Sandy insurance claims. It's possible that the insurance companies are re-defining hazardous areas or that flood maps are being redrawn.

After the flooding in NE North Carolina following Floyd, the flood maps were all redrawn and many premiums were increased. Many other policies were dropped.

[Tom L.]

Re: Outrageous Insurance Premiums

Here in LI the flood maps were also redrawn a while ago. I'm about 1/4 mile from the beach so I'm told that I'm in a "Flood" zone. They don't seem to care that my home is 117' above sea level. Go figure??

[Kurt G.]

Re: Outrageous Insurance Premiums

In many states the insurance commissioner and his staff do not establish rates, they primarily monitor and approve rates, and subsequent changes. The insurance company will determine risk based upon many factors, most of which we as consumers have no knowledge of our control over. The company will either submit a rate increase request, or a rate deviation request to the commissioners office for review and approval. Their documentation will normally include information regarding the particular class of coverage for which the rate change is requested, including claims loss ratios, etc. After the review either the commissioner grants the rate change, or, if not approved, the insurance company will often pull out of that type of coverage in an area. As Paul mentioned, most states have an Insurance Fund, but that is not in play here. Insurance funds are set up for those that can't find coverage in a standard or surplus lines company. If the fund happens, the state establishs the premium and then tells the insurance company they now insure your car. It's one of the costs of doing business in that state.

Many things can affect your rates. Location, age, driving history, family member age or history, losses, and in some cases the mood of the underwriter. It's not a science, although to most consumers, it is a necessary evil. Unfortunately, we, myself included, forget that rates have been very low for the last several years. This was as a result of the insurance company's ability to offset underwriting losses by using investment income. The sad thing is, the insurance industry is VERY slow at responding to swings, and we all now have to pay for their lack of attention to the last 5 years of a down economy. To put it bluntly, they've been loosing their butts for the last few years, and are just now figuring it out.

Long explanation, but, as Walter Cronkite said, "That's the way it is"

[Donald O.]

Re: Outrageous Insurance Premiums

I have Hagerty an live in a suburb of Chicago in the most debt ridden state in the union and my rates went down by $15 for the year, same coverages. No complaints from me