5 ms·
> One 36-year-old man from Prince George’s County, Md., who Allstate said in public records should have been paying $3,750 every six months, was instead being c
by leereeves 7y ago
> One 36-year-old man from Prince George’s County, Md., who Allstate said in public records should have been paying $3,750 every six months, was instead being charged twice that, more than $7,500.
This man was being charged over $15,000/year for auto insurance?
- czinck 7y agoProbably has a DUI or 2. Also possible that they have a car worth a lot, but I think normally that goes through a specialty insurance company, or is just "self-insured" for collision coverage so the value of the car doesn't affect the premium.
- saber6 7y agoLol I knew a guy with 2 DUIs and on a SR-22. His insurance was 550/mo with a 1 year old Honda. $1k/mo+ for insurance better be a yacht or a Bugatti or some shit lol.
- giarc 7y agoWould All State still insure a person like that? I thought most well known companies would drop people with DUIs and leave them for lesser known "high risk insurance" companies.
- ssharp 7y agoIdeally, Allstate would access risk accurately and set their rates appropriately. For high-variance situations like this, over-indexing your loss ratio seems like a not-so-bad move. Yes, you can get our insurance with your two DUI's but your price is 2x expected loss. Pretty solid odds if you're pretty confident in your pricing model.
- briandear 7y agoMy airplane insurance costs less than that. $15k for auto insurance is insane.
- onychomys 7y agoWell, you're also much less likely to file an airplane claim than an automobile one. You're right that $15k is silly, but I'm not so sure it's the sort of silly you're implying here.
- pengaru 7y agoThat rationale works for motorcycles, general aviation planes have both a dismal safety record and can destroy an entire home or crash into a sky-scraper, etc.
- sokoloff 7y agoWhile technically true, most GA piston airplanes have liability limits of $1MM (sometimes $2MM, rarely more) and often per-passenger [or worse, per-person] sub-limits of $100K, so there's a cap on the liability payment the insurance company is signing up for.
- astura 7y agoSounds outrageous but he might be insuring several exotic cars. Obviously, TFA has established that he should be paying less.
- unishark 7y agoI think this makes the most sense. I once looked into getting insurance for a muscle car with a big engine and the quote from one of the insurers was close to $500 per month (much higher than the one I ended up going with). That was many years ago so with inflation and an even faster car like a corvette, someone might easily be paying double that nowadays.
- motohagiography 7y agoThere is a situation in relative poverty where you become so risk averse you end up paying outsized prices for things because you can't afford the risk of a change. If this person lost his ability to drive based on not being able to get insurance, challenging the insane amount he is being charged is just too much risk. Who knows what kind of events have occurred in his credit history, personal life, social media, or other reputations where he doesn't believe he can get insurance again if he applied. It's a don't rock the boat mentality when you are at a disadvantage. Reality is, big data makes life utterly dystopian for many people. It was foreseeable, predictable, and as a society we let it happen.
- niij 7y agoOr they own a dozen vehicles.