Yeah...Yeah...

 

HAHAHAH...i live in DAvis...maybe i should drive by and take pics...:rick:

tomorrow after work i will.....lol

 

Just insurance companies' lame excuse for jacking up their rates and forcing people to bend over and take it.

 

Dang you live in Davis??? I attended UC Davis! How yo'll doing!?!?!? Does the cow still smell (I am sure they do).

 

Well lets see... people keep reporting false claims and rates don't go up. Then the avaliable funds that are used to pay out on claims runs out. Why? Cause they are taking in less than they are putting out.

So lets say X Insurance company has 10million customers and they estimate that each person on average will file one claim per year. Average cost of each claim being $XX. Everything works out and they can predict what their anual amout of payout will be, so no need to raise insurance rates.

Now all of a sudden they are getting 25% more claims... false claims. They can't prove they are false so they have to pay on them. So a year goes by and they figure it's just a busy year. The whole time that extra 25% is telling their friends they made a false claim of such and such and they got free money! Free money?? Who doesn't like that?

So then next year lets say of the original 25% only 10% do it again... but then another 20% of people decide to try it and get their false claim money. That's 30% this year. Well that's 25% last year and 30% more this year, insurance company can't keep up like this or they will go bankrupt. So they raise rates 5% to help compensate with the false claims.

Next year... lets skip what ifs and say the false reports stay the same at 30% more than normal. Now the insurance company is really worried. Were they this far off on their numbers this whole time? Or is something fishy happening? So they hire more employee's to investigate these "claims". Add another 5% to your premium.

Basically what it comes down too, you pay them to do a job. The more it costs them to do that job and the more people waste their time and money, the more it costs you. So no, it's not just a lame excuse. Fraud is a real problem and it DOES cost everyone more.

 

go steal it and print that out.. then turn him into the po

 

:cheers: Very well said. Thank you.

 

yes Davis still smells like cow sh!t LOL

 

"it's NOT ok to contact this poster with services or other commercial interests "
:doh: :rofl:

 

The question is, if everyone else who didn't claim, why do they have a rate incase. That's the thing I don't get about insurance. For people who never ever claim, they have to subject to the same raises because people they have never seen or known claim like crazy. Why not charge those who claim, say, twice in 5 years or in 10 years. I remember Car and Driver calling the current insurance policies as in Big Brother style policies. And I agree.

It's like, "oh look you live in a city that claims a lot, that means you will claim too, so watch out, we are charging your ass." I live in Brooklyn, and we have 30 pecent higher insurance rates over all other boroughs in New York (higher than Bronx). Instead of nailing those that claim like crazy, they decided to charge everyone, including me, 5+ years of license who never claimed. Fraud sucks, but at the end, insrurance companies suck even more out. It's not really insurance, it seems like we have to do it because of the law, but at the end, we will have to pay whatever amount they decided to compensate us, and that's more like a bank, NOT insurance.

I might be wrong, but please do correct.