Skip to comments.Allstate to stop insuring new N.J. homeowners
Posted on 12/08/2006 6:17:12 AM PST by Hydroshock
click here to read article
FOr insurance to work, the total you receive from them in claims has to be less than the total paid in in premiums.
Since almost any complete loss of a house will far exceed the amount paid in by the homeowner in their entire lives, it is clear that most everybody else should feel "ripped off" by their insurance. For example, if you are paying 1000 a year (I used to be less than half of that, and I don't think I'm that expensive yet), and you pay for your entire life, that's less than one hundred thousand dollars, and you'll collect a lot more than that if your house burns down.
I think I'm even ahead right now with my car insurance, having totalled a brand new car two years ago and getting the full retail price out of my company. I'm also even with my homeowners, having gotten money to repair hail damage a couple of years ago, it wasn't that much but as I said I haven't paid that much.
But if you think the insurance company is ripping you off, just don't buy insurance, or find another company. It would be EASY to do so, if the states weren't so over-regulating the industry which makes it hard for small companies to break into the business.
my take is that based upon passed experience with Allstate, they are looking for a rate hike and need to give their people in the legislature some reason to grant it.
Is New Jersey a "risk", or is it just that the government their has made it so hard to sell insurance for what it costs that it's not worth it?
There's a reason Allstate pulled out instead of just raising their rates. Usually it's because a state has ruled that all people in their state must get the same rates, and the company can't get people who live in areas NOT at risk to pay enough extra to cover the cost for those who live on the shore where there is a lot of extra risk.
I wonder if that's what happened in New Jersey.
May be a simplistic solution, but I'm in Florida and have thought for a long time, if they want to get out of the homeowner's market fine. But keep them from writing any other type of insurance in the state as well, like auto, etc.
Insurance companies cherry pick.
Our rates went up significantly in Florida due to hurricanes in the past few years. What if we don't have any hurricanes (as in last season) or minimal hurricanes for the next few years? Will the rates go down to reflect their savings....I don't think so!
My car insurance company pays out money if they have a good year, I've received checks from them in the past.
Our Business is located about and hour and a half from ground zero. Possibly it was just coincidence. Our new carrier charges us three times the amount of the original premium.
"The overwhelming majority of those in the insurance industry are honorable, and honest people."
You can say that about Muslims also. but the ones who are not can sure make up for the good ones.
My life insurance company is ripping me off. I pay and pay and pay and never get anything from them. :-)
Should someone who sky dives every day, pay the same rate for health insurance as someone who doesn't? I do not think so, those with high risk hobbies should assume the cost of the increased risk.
Why should my rates go up because of someone else's lifestyle choices?
Allstate has paid on claims to me quickly and fairly for 25 or so years...on both Auto and Homeowner claims.
I dont know how I could be better served. I cant imagine how they can be worthless.
Yeah. Our rates keep going up too. I would rather just take precautions and save the money but I can't.
State Farm? What you described is a mutual insurance company which is owned by the policy holders. Many of the mutual companies have "demutualized" and become publicly traded companies in the past few years.
Very true. Companies are in business to make money.
When we lived on the Easter Shore of Virginia we had to buy special flood insurance from the government because no policy covered hurricane flooding.
Psssst, the only people who can self-insure are those who don't really need the insurance in the first place. I would love to dump my auto insurance and self-insure. The only thing stopping me is couple hundred grand in liquid assets that I could use to post the requisite bonds to legally do so.
I don't think that's accurate. Large parts of Mexico were deforested by the Spanish and never reforested. Wood is not easily available. Also, stone homes are much cooler in that hot climate where most people don't have AC.
We used to have our vehicle insurance with them. Then we received an ad from NRA (we have been members for 31 years) about AIG insurance through NRA. We save $600. per year.
While I don't agree with the slimeball characterization the reality is that we have no choice but to get insurance. No bank will write a mortgage to people who don't have homeowner's insurance and most states (I think) require drivers to be insured as well.
Use government force to subvert the natural working of the free market? Not a very conservative outlook...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.