Friday, May 6, 2011

Insurance--Legally Required Rip-off

I've been on a slow burn at my insurance company for a while now. It seems that despite the economic realities of recessions and declining income that insurers have decided that since insurance is required--home and auto, they can continue to raise rates.

I was shocked to find that my home insurance increased $200 last year AND they tacked on a surcharge for having a "history" of claims.  Really? Isn't that what insurance is for? Yes, we were vandalized in 2008--robbed even, although officially is it listed as being vandalized. We were the victims! And we are still being victimized--by the insurance company. That is the only claim I've filed on my homeowners insurance that I have had with them for over ten years.  Someone needs to explain how a single event becomes a history of claims.  Maybe a history of "claim" but there certainly can be no plural.

It really bugs me when I see ads on TV for my insurance company--and then realize that's what they are doing with my premium money--buying airtime to increase the customer base--which increases the risk and ultimately makes my rates continue to increase.

I called them to inquire about the surcharge and the rate increase. You know that I received that standard "blah, blah, blah" answer.

Here is the rub--when I surveyed the other insurers--I couldn't do enough better in savings to make it worthwhile to go through the pain of changing from the company which has insured my family for more than 30 years.

But they have broken the faith with me.

Then my auto insurance renewed.  Ugh. Another modest increase because the annual mileage on one of my vehicles increased.  Why does it never seem to go down?

I surveyed other auto insurers and found that my policy is the most aggressively priced--even Geiko couldn't beat it--if you can believe that.  And State Farm was incredibly high by comparison.

And so I'm trapped--stuck with a company which I increasingly do not trust and would dearly like ot stop doing business with, but economics keeps us together.

Kind of like China buying so much US debt--we would love not to have China buying our debt--but then we keep creating debt.

As long as insurance is required, I will continue to be a policy owner--but I will continue to aggressively search for he better deal. It is out there, somewhere!
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