READ MORE: The insurance on my 2012 Mazda went up 72% to $233 a month!’
https://www.dailymail.co.uk/yourmoney/consumer/article-12958115/car-insurance-storms-wildfires-inflation.html
The insurance on my 2012 Mazda went up 72% to $233 a month!’ Americans are battling soaring car and home premiums - which insurers blame on storms, wildfires and inflation - what can you do to lower them?
Simon Edwards’s monthly bill from Geico rose from $130 last April to $223 now
Actress Marta Cross is paying more than $4,000 a year home insurance in LA
Some states have capped how much insurers can increase prices - but those companies have simply refused to offer cover as they would lose money
By DANIEL JONES, CONSUMER EDITOR FOR DAILYMAIL.COM
PUBLISHED: 14:51 EDT, 21 January 2024
They say ‘What happens in Vegas stays in Vegas’ - but the eye-watering auto insurance bill city resident Simon Edwards recently received is just one example of the staggering rises in premiums consumers are facing all across the US.
The 2012 Mazda 5 owner was shocked to find his monthly bill from Geico had rocketed up from $130 last April to $223 now – a rise of 72 percent in just eight months.
‘I’ve been in no accidents, no tickets, been with Geico for many years,’ a perplexed Edwards told the Wall Street Journal.
Manwhile, actress Marta Cross is having to pay more than $4,000 a year home insurance in Los Angeles.
For all too many home and car owners, the insurance market is proving to be perhaps the most brutal battlefront in the cost of living crisis.
There are concerns of profiteering from insurers, but they point to two key challenges - more natural disasters and rampant inflation.
The analyses here seems to be correct. Interestingly, I watched for my homeowners insurance to reflect similar price hikes but it didn’t. I live in Minnesota and insure with USAA which I’ve had since 1979 when I entered the Navy. My home owners insurance for the upcoming year went down by $400 without any changes in coverage.
According to California attorney Barry Goldberg, illegal aliens are uninsured up to 50% of the time and 3x more likely to cause traffic fatalities.
Hit and runs, uninsured motorists, car thefts, fraud will all cause premiums to spike.
Hurricanes, tornados, hail storms, thefts, ice storms, fraud will cause premiums to spike.
Risk is spread across the market. You may not have filed a claim, but if enough of your neighbors do, premiums spike.
Should the insurer’s move out, then could it be the mortgage companies/banks next?
It would be extremely dangerous territory to underwrite a loan, especially in California given their annual fires, and let’s not forget earthquakes and mudslides; without having that asset be insured.
The only other alternatives to that would be paying cash for the house/townhouse, or having people with the means to cover the overpriced home, and now the overpriced insurance.
Rental companies typically require renters insurance as part of the agreement. Are they supposed to forego that as well out of the kindness of their heart?
California is a clear example of how government should not operate and what they need to steer clear of as it relates to policy.