3 ms·

Do average prices to fix cars go down? Have people generally been driving cheaper or more expensive cars over time? Why would we expect insurance to go down on

Do average prices to fix cars go down? Have people generally been driving cheaper or more expensive cars over time? Why would we expect insurance to go down on things more expensive to insure? Taking a quick peek, while insurance rates have been going up for while most insurance companies' margins are pretty similar to their historical margins.

richwater 3y ago
Building on top of this, many states limit how much increases can be, which makes it difficult for insurers to respond to quickly changes market forces like we saw in COVID. Labor + Parts became so much more expensive but coverage costs were unable to be increased. https://www.npr.org/2024/03/07/1236504265/auto-insurance-costs-more-everywhere-but-the-problem-is-especially-bad-in-califo https://www.npr.org/2024/03/07/1236504265/auto-insurance-cos...
- themaninthedark 3y ago
  Sounds like the car insurance companies should have taken out policies for sudden events beyond their control. Other types of insurance companies do so; For example, State Farm might take out a policy to backstop their cash reserves where the terms are if they exceed over $100million in claims in a 2 week period of time.
DangitBobby 3y ago
This doesn't really have anything to do with the question. It's not about the gradual increase of rates over time generally, it's about relative rates due to behavior tracking. If reckless driving can increase insurance premiums relative to others while ideal driving has no effect on your relative premium, it's just a naked money grab. All downside means drivers should be against it.
- vel0city 3y ago
  > Does anyone's insurance go down? This was the question. A huge chunk of a lot of people's insurance isn't the insurance to fix your car, it is to fix the other guy's car. If the average cost to fix the other guy's car keeps going up, your insurance will end up going up given a fixed risk level.

richwater 3y ago

Building on top of this, many states limit how much increases can be, which makes it difficult for insurers to respond to quickly changes market forces like we saw in COVID. Labor + Parts became so much more expensive but coverage costs were unable to be increased. https://www.npr.org/2024/03/07/1236504265/auto-insurance-costs-more-everywhere-but-the-problem-is-especially-bad-in-califo https://www.npr.org/2024/03/07/1236504265/auto-insurance-cos...

themaninthedark 3y ago
Sounds like the car insurance companies should have taken out policies for sudden events beyond their control. Other types of insurance companies do so; For example, State Farm might take out a policy to backstop their cash reserves where the terms are if they exceed over $100million in claims in a 2 week period of time.

DangitBobby 3y ago

This doesn't really have anything to do with the question. It's not about the gradual increase of rates over time generally, it's about relative rates due to behavior tracking. If reckless driving can increase insurance premiums relative to others while ideal driving has no effect on your relative premium, it's just a naked money grab. All downside means drivers should be against it.

vel0city 3y ago
> Does anyone's insurance go down? This was the question. A huge chunk of a lot of people's insurance isn't the insurance to fix your car, it is to fix the other guy's car. If the average cost to fix the other guy's car keeps going up, your insurance will end up going up given a fixed risk level.