Why is insurance is so expensive?

[murf]

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Re: Why the fuc* insurance is so expensive?

That's true..but you have to sue..which is fine..but what if they are unable to pay? The fact is, you pay more for insurance and you get more coverage. California has very limited coverage, therefore, you will likely have to sue for damages if you are seriously hurt. That's a fairly daunting thing to face if you're in a bad situation. I'm not saying out insurance system is great, but there's a very simple reason why insurance is cheaper in California..

Any reasonable person does not buy the minimum requirements in the USA. My coverage was similar to what it is here. Also got things like:

Personal Injury Protection (PIP)
This auto insurance coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident.
It may also pay for:
Rehabilitation
Lost earnings
Replacement of services (For example, child care if a parent is disabled.)
Funeral expenses

http://www.statefarm.com/insurance/auto_insurance/ins_auto_type.asp

 

[Venom01]

That's true..but you have to sue..which is fine..but what if they are unable to pay? The fact is, you pay more for insurance and you get more coverage. California has very limited coverage, therefore, you will likely have to sue for damages if you are seriously hurt. That's a fairly daunting thing to face if you're in a bad situation. I'm not saying out insurance system is great, but there's a very simple reason why insurance is cheaper in California..

I'm also assuming that this probably leads to more hit and runs.

Sent from my Nexus One using Tapatalk

 

[invictus43]

Re: Why the fuc* insurance is so expensive?

Any reasonable person does not buy the minimum requirements in the USA. My coverage was similar to what it is here.

So what was the cost when you increased the coverage to what we have by law? I suspect it was lower but probably not much.

The system is different and it's hard to compare apples to apples, that was my point.

 

[murf]

Re: Why the fuc* insurance is so expensive?

It was $600 usd a year which at the time was about $900 cdn.
This was for a CBR929, full coverage.

 

[VifferFun]

Re: Why the fuc* insurance is so expensive?

The uninsured motorist portion of your policy.

I think you mean underinsured motorist coverage, and that's a nice try; however, if this were the case, then underinsured motorist coverage would haave to cost about $1500/yr in the US. I'm not sure if they even offer this coverage.

 

[VifferFun]

Re: Why the fuc* insurance is so expensive?

It was $600 usd a year which at the time was about $900 cdn.
This was for a CBR929, full coverage.

How many years ago? Did you account for monetary and social inflation (at about 10% a year over the last 5 years).

 

[murf]

Re: Why the fuc* insurance is so expensive?

I think you mean underinsured motorist coverage, and that's a nice try; however, if this were the case, then underinsured motorist coverage would haave to cost about $1500/yr in the US. I'm not sure if they even offer this coverage.

I don't remember it being very expensive.

Uninsured Motorist
This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance
In some states this auto insurance coverage may also pay for property damage.
This type of car insurance coverage varies by state and depends upon policy provisions.

Underinsured Motorist
This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.
Application of this type of auto insurance varies by state and depends upon policy provisions.

http://www.statefarm.com/insurance/auto_insurance/ins_auto_type.asp

 

[murf]

Re: Why the fuc* insurance is so expensive?

How many years ago? Did you account for monetary and social inflation (at about 10% a year over the last 5 years).

When I brought the bike to Canada that year (2002) it cost $1600 or $1700 to insure and then I switched companies and got it for $1300 cdn.
So it was $1300 in Canada vs $900 in Michigan which is a no fault state btw.

Not sure about you 10% a year?

 

[VifferFun]

Re: Why the fuc* insurance is so expensive?

I don't remember it being very expensive.

Uninsured Motorist
This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance
In some states this auto insurance coverage may also pay for property damage.
This type of car insurance coverage varies by state and depends upon policy provisions.

Underinsured Motorist
This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.
Application of this type of auto insurance varies by state and depends upon policy provisions.

http://www.statefarm.com/insurance/auto_insurance/ins_auto_type.asp

And what is the limit on the UM and UIM coverage? If the coverage is not expensive in the US, then I'm guessing it's limited by the pathetic minimums of about $20K as well.

 

[VifferFun]

Re: Why the fuc* insurance is so expensive?

When I brought the bike to Canada that year (2002) it cost $1600 or $1700 to insure and then I switched companies and got it for $1300 cdn.
So it was $1300 in Canada vs $900 in Michigan which is a no fault state btw.

Not sure about you 10% a year?

Ontario is no-fault as well -- it works to reduce premiums overall by the savings in court fees over trivial claims.

Social inflation has been huge in Ontario over the last five years. By this, I mean the courts are awarding larger and larger settlements, to the tune of 8% a year. On top of this, there is also the regular rate of inflation.

 

[Wheelieboy]

Re: Why the fuc* insurance is so expensive?

I talked to some people in the states when I was down there. Buddy's wife got rear ended pretty hard and had to go to the hospital for it. The car was totaled and replaced by the other party's insurance. But guess who was stuck with the hospital bill? The other party was a 19 yr old kid who barely had a dime in assets and all medical bills were covered by the not-at-fault motorist.

I guess its either pay lots of $$ and know you're covered, or pay peanuts and get peanuts. Personally, I cant decide which is better.

 

[murf]

Re: Why the fuc* insurance is so expensive?

And what is the limit on the UM and UIM coverage? If the coverage is not expensive in the US, then I'm guessing it's limited by the pathetic minimums of about $20K as well.

Again I didn't take the minimums. I had a million in liability, income replacement etc.
I just purchased disability insurance here that covers me for any accident (hockey, falling down stairs, car accident etc) and will replace my income if I can no longer work.......it's $40 a month. I don't think that's expensive.

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