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Car Insurance (pg. 6)
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View this Thread in Original format
| ChemEnhanced |
| just remember....you get the service you pay for. |
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| rabbitjoker |
| quote: | Originally posted by tatgirl
'high risk' insurance |
THE FACILITY! :eek: |
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| Euphorica |
last I heard they werent doing the automatic drop when you hit 25.
insurance prices in ontario is straight up retarded...and of course its profitable for the companies. they made what..some stupid amt in the billions last year? no wonder with the rates that they are. |
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| rabbitjoker |
| quote: | Originally posted by Euphorica
last I heard they werent doing the automatic drop when you hit 25.
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Mine went from $300 to $100 when I turned 25. Mind you that was a few years back. |
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| rabbitjoker |
| quote: | Originally posted by Euphorica
insurance prices in ontario is straight up retarded...and of course its profitable for the companies. they made what..some stupid amt in the billions last year? no wonder with the rates that they are. |
It has been DECADES since an insurance company in Canada has made any sort of reasonable profits on underwriting policies.
Nearly 100% of insurance company profits are made from investments - not policy underwriting.
Why is a private system more expensive than a public one? Easy - if a public system under-estimates claims for a year, the gov't simply takes out of public purse.
If a private system under-estimates claims for a year - they must make sure they have reserves (investments) to cover those additional costs.
The public system strives to run a complete year on year break-even system. The private system must strvie to run on a "banking for a rainy day" system. |
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| Moral Hazard |
| quote: | Originally posted by DigiNut
Why the hell can't I ditch those accident benefits? |
Actually, there is a big push going on within the industry to make AB coverage optional. The argument is that if people have collateral medical and disability benefits through their employer or private insurance plan then the AB coverage is redundant. Moreover, AB coverage is a secondary coverage to any private med and disability plan you may have therefore if you have those coverages through a group or individual plan then there is little likelihood you would ever access your AB coverage. In order to make this happen the provincial government will need to ammend the Insurance Act.... the Insurance Bureau of Canada is currently lobbying for this. Now, the provice is somewhat on the fence about this because as it presently stands the AB premiums of those that likely will never receive AB payments due to private insurance subsidises the premiums of those who do not have such coverage. IF the government were to allow people with such coverage to opt out of AB then the AB premiums for those that do not have coverage would have to be increased..... Substantially. Now for people like you (you work for Waterloo North Hydro, right? I presume you have benefits) and I opting out of AB would be great, however, for people that have no such benefit plans (self-employed, part time employees, contract employees) this would dramatically increase their premiums.
BTW, the reason over regulation of the insurance industry exists is because the public distrusts insurance companies. This distrust created very strong demands over the past 30 years or so for provincial governments to regulate both coverage and premium. In many ways this intervention is horrible (especially with regard to premium controls which result in good drivers subsidising bad) but in other ways it is absolutely necessary (such as mandatory minimum liability coverage). The real problem lies in that if you mandate insurance the public will demand that you control it so in order to keep the positives of government regulation we're saddled with the negatives..... until the public finally realizes that it is they and their misperception of the industry which has caused this situation we will be stuck in this mess of over-regulation. |
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| Moral Hazard |
| quote: | Originally posted by rabbitjoker
Why is a private system more expensive than a public one? Easy - if a public system under-estimates claims for a year, the gov't simply takes out of public purse.
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One problem with this RJ. Your statement assumes that Public systems are in fact cheaper. This is incorrect. While the premiums one pays to a public insurer may be less the difference is made up in other non-direct ways. In Quebec, they have a government insurer for automobile injury claims.... They charge no actual premium, however, they add fees to license renewal, registrations, plate cost, and fuel (ever notice how gas in Hull is $0.10/L more then Ottawa) to make up the difference. In BC they also have public insurance for Liability and Accident Benefits (they call it section 7) coverage. The premium is charged yearly with your plate renewals. In BC the premium is less then it would be here, however, that is because they only charge premium based on claims. The expenses (including salary) for the Insurance Corporation of British Columbia are paid from the general accounts of the province. This means that all the underwiting, claims, actuarial, brokerage, administrative, and salary expenses must be paid for via taxes. Essentially, the premiums are lower but the true cost is hidden. In fact, it is fairly safe to say that the true cost is higher especially with regard to salary as all the public insurers have unionized employees. ICBC is the best example.... their employees make approximately 15% more then their Ontario counterparts, get 5 weeks vacation, and only work 4 days a week (the latter two results in more staff being required).
All that being said, you are correct with regard to claims shortfalls. Public insurers are notorious for being under reserved (under estimating claims costs therefore maintaining insufficient amounts of cash to pay claims). If a private insurer in Ontario were under reserved to the same extent as ICBC was last year they would lose their charter to write business, they may even be forced to disolve. |
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| virtualtrancer |
| quote: | Originally posted by ChemEnhanced
hmmmmm....I detect someone else who is in the insurance industry |
soon to be in the insurance industry, graduating this april....yay |
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| Moral Hazard |
| quote: | Originally posted by virtualtrancer
soon to be in the insurance industry, graduating this april....yay |
Welcome to the ranks of the hated. What area are you looking at; claims, underwriting, actuarial (zzzzzzzzzzzzz), or brokering? |
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| Floorwhore |
| quote: | Originally posted by DigDeep
Holy christ.
Just got a quote for $2004 (if paid in full) for a year!!
$167/month!!!!! |
fack.
turns out pc cant insure me because i have 3 tickets......
BACK TO THE DRAWING BOARD..... :sadgreen: |
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| Jem_hadar |
| quote: | Originally posted by Euphorica
last I heard they werent doing the automatic drop when you hit 25.
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NOT TRUE.
I'm turning 25 in a month. I've gotten over the past month and a bit many many many quotes on different automobiles I'm thinking about buying.
When my quote was for immediately, I was usually in the $3,800/year mark. When I asked Sarah (my insurance girl) to quote me for when I turn 25 in a month, I was quoted at $1,700/year !!!
Your insurance WILL drop when you turn 25! Mine, but over half! I ing love it. I finally feel that I wish to own a car now, now that my insurance is what I consider to be a reasonable cost to me!
Jem |
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| Cosmopolitan82 |
I got my auto insurance renewal letter in the mail today. Nothing has come or gone off my record, and Im only 23. My premium dropped from $230/month to $160/month, for no apparent reason?
What could explain this? The best reason I could come up with, is that I just completed my first year with the company, and this is their ploy to keep me as a customer.
thoughts? |
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