Auto insurance rebates
- Thread starter simply1
- Start date
The truth is, insurers are making so much money on their auto lines of business that they are beginning to worry that state regulators won't approve of future planned rate increases. These rebates that they are offering is a small way to attempt to get in good graces with the regulators so they can still increase rates down the road.
Bingo. They are regulated on how much they take in from premiums and pay out so as they pay out significantly less they need to adjust. Marketing takes over and here you have a feel good ad campaign.
BIL is an adjuster for a good sized company. He works five hour days the way it was, he probably is only working 1-2 hours now. It's the company I have had my insurance forever, think they could cut some adjusters out and save a bunch of money and get him up to 7 hour days at least.
CycloneErik
Well-Known Member
It is goodwill for the Auto Insurance Companies. Home Insurance is where companies are losing money.
Iowa already has the lowest auto insurance rates of any State.
Iowa already has the lowest auto insurance rates of any State.
he said new business is down significantly as well but thinks the drop in claims still makes it a net gain.
I don’t believe that’s true at all regarding auto insurance not losing money in recent years.
Home Insurance has been a huge money loser over the last 3 to 5 years. Auto Insurance still makes money, sure they lose but overall a money maker.
Yep, Companies with Commercial Business have much better pricing right now than those with only Personal Insurance. Home rates in Iowa have gone up quite a bit with almost all the insurance companies I write. Auto some but more consistant.
Auto liability eats an insurance companies lunch more that home owner policies. Todays vehicles are rolling computers and electronic machines. Even a small backing claim can be 1000's of dollars due to cameras and sensors. Medial relared to personal injury also skyrocketing
I can attest to expensive electronic repairs for today's cars. I had my windshield cracked by a rock. The total cost to replace it was $1100. The insurance company paid out $1000 of that. $500 of that was for re-calibrating the sensors that are mounted behind the windshield.
