MORE DEPRESSING INSURANCE NEWS

[Father of One]

I’m on Louisiana Citizen’s Insurance which is designed to be more expensive than the most expensive private option in the Parish you reside in to encourage people to seek out private insurance plans. Unfortunately there are no licensed private insurers that will write a policy where I live so I am stuck with Citizen’s.

My wind and hail premium went from $2400 to $8900 since 2021. Flood insurance is not included in that, but it is now required since FEMA decided to get the Crayons out and redraw some lines in ‘21. House is nearly paid off so I am considering a policy for fires and liability and then self-insuring for everything else.

 

[DTruck]

I'm getting hosed in my state too. My property taxes are even worse -- and that's AFTER a 1990s property tax limitation measure that set restrictive limits on how quickly the government can raise property taxes. My 2024 property tax was STILL more than my original mortgage payment. If it were not for the property tax limitation we would have been taxed out of our house by now.

Transplants have completely overwhelmed our state and real estate prices have gone crazy over the last ten years. Hundreds of thousands of city folks moving to the country and bringing their behaviors with them. The property value seems great for half a second, but then you realize the resulting taxes on the higher value will break you, and the value of the home is otherwise meaningless unless you have somewhere else to live. Lucky me, I also pay 9% state income tax AND additional payroll taxes, including a new "paid-leave" tax (so people who don't want to work or save vacation/leave can continue to get paid while sitting at home.) It's all crazy, and damn scary for folks who are about to retire, because inflation, fees, and taxes keep going up and retirement income can't keep up.

What state are you in, if you don’t mind me asking?

 

[Explorerinil]

I'm getting hosed in my state too. My property taxes are even worse -- and that's AFTER a 1990s property tax limitation measure that set restrictive limits on how quickly the government can raise property taxes. My 2024 property tax was STILL more than my original mortgage payment. If it were not for the property tax limitation we would have been taxed out of our house by now.

Transplants have completely overwhelmed our state and real estate prices have gone crazy over the last ten years. Hundreds of thousands of city folks moving to the country and bringing their behaviors with them. The property value seems great for half a second, but then you realize the resulting taxes on the higher value will break you, and the value of the home is otherwise meaningless unless you have somewhere else to live. Lucky me, I also pay 9% state income tax AND additional payroll taxes, including a new "paid-leave" tax (so people who don't want to work or save vacation/leave can continue to get paid while sitting at home.) It's all crazy, and damn scary for folks who are about to retire, because inflation, fees, and taxes keep going up and retirement income can't keep up.

Crazy, what state are you in?

 

[Vermonster]

I pay $4560 annually. That’s full coverage on:
2022 F350
2024 Subaru Accent
2000 Ducati 748
2015 Ducati 899
2011 BMW 335i
1974 BMW 2002 (comp only)


I shopped around - landed at State Farm. Not a fan of the drive safe and save … but it’s been cheaper than others.

 

[SWFLGuy]

lol, my drive safe thing got me a $17 discount from State Farm.

 

[Modman]

I pay $4560 annually. That’s full coverage on:
2022 F350
2024 Subaru Accent
2000 Ducati 748
2015 Ducati 899
2011 BMW 335i
1974 BMW 2002 (comp only)


I shopped around - landed at State Farm. Not a fan of the drive safe and save … but it’s been cheaper than others.

Assume you have your house with State Farm as well for the "Boon-dah-lay and Sah-vay" discount?

 

[Dok D]

I had USAA for home and auto for years. Then, when I bought my used 21 Tremor, my insurance went from $200/mo to $575/mo. Checked with Liberty Mutual, was $200/mo less for the exact same coverage. Obviously made the switch.

USAA has been pissing in my corn flakes too much over the years, so been slowly getting rid of them entirely, including banking.

I'm 100% VA disabled, so thankfully no longer paying property tax. Registration on the truck was taken care of with a permanent disabled vet plate... that alone saves $200/yr.

 

[Sccritterkiller]

Get some flood insurance thru FEMA it will make your auto insurance look cheap..my fishing cabin 800 sq ft cinder block built in '59 appriased for 40k..1900 a year. It only good for one claim on the address ever.

 

[Vermonster]

Assume you have your house with State Farm as well for the "Boon-dah-lay and Sah-vay" discount?

I do - but it's escrowed in my mortgage so I didn't include it in the total.

 

[Vermonster]

Get some flood insurance thru FEMA it will make your auto insurance look cheap..my fishing cabin 800 sq ft cinder block built in '59 appriased for 40k..1900 a year. It only good for one claim on the address ever.

Ain't that the truth! We have the same issue at two locations in VT.

 

[OldFart]

I see so many older people returning to the workforce that "were" once retired now. They're doing it because of reasons like this...too much month at the end of the money to afford the increasing cost. I spoke to a fella working part time in a big box hardware store and he said it was because of rising auto and home insurance cost that's he's supplementing his income being on Social Security and a pension. Retirement USED to be a goal but, unless you've planned way ahead and set yourself up to accomodate the rising cost...you will, like so many....struggle to meet that light at the end of the tunnel. Stay hopeful for better times, friends!

 

[JTredway]

I do - but it's escrowed in my mortgage so I didn't include it in the total.

My mortgage company pissed me off and i removed my escrow and self manage it now through a HYSA. Now what was escrow grows at 4% and I manage prop tax and insurance.

I was already annoyed they were holding an addl two months of escrow then they pissed me off and raised my monthly payment even after I made the yearly adjustment payment.

 

[Vermonster]

My mortgage company pissed me off and i removed my escrow and self manage it now through a HYSA. Now what was escrow grows at 4% and I manage prop tax and insurance.

I was already annoyed they were holding an addl two months of escrow then they pissed me off and raised my monthly payment even after I made the yearly adjustment payment.

I got butthurt early on with this too. They had a two-year shortage (as they never updated my annual tax totals when I sent them). Annually I pay $11K per year, and at the end of the year the mortgage company added a shortage amount of $12K which I needed to make-up instantly, or $1K per month. That was a wicked pissah.

 

[pods8]

My home insurance in 2022 with safeco was $2800, then in 2023 is was $4400, in 2024 they quoted $6500! I switched to travelers at $4500 but with a $5000 hail deductible.

Lots of insurance companies are limiting or pulling out of the state and the ones that stay are raising the premiums and deductibles to account for the claims. Between wild fires, hail, and soft on vehicle theft government they gotta collect their $$$ to spread the pain. At the time I was extra annoyed because my neighborhood hadn’t had a hail event in over a decade so watching the premiums rocket up to subsidize others was painful. 2mo after renewal we got hit by hail. I haven’t made a claim yet (you get 12mo). I want to see how bad I get dinged for just the statistics of claims in my area versus my own.

Frankly I would rather a high hail deductible and correspondingly lower premiums where possible to “self insure” that portion to a degree vs paying massively constantly in premiums. Some areas were claiming new roofs every 2-3years with low deductibles, I don’t want to subsidize that.

 

[carsonsmith87]

Yes, I was at $3800 per year for property taxes in 2012, now I’m at 10k. We don’t want to stay here anymore, however we both have good jobs and our home is within 3 years of being paid off and we have no other debt. Illinois sucks, terrible goverment.

I totally get it! I hate Illinois government! They are right there with California and New York on who can pass the dumbest laws and tax their residents more. My wife and I both have good jobs as well and that is the only thing keeping us here. If it gets much worse, we're going to leave regardless.

 

[pods8]

Get some flood insurance thru FEMA it will make your auto insurance look cheap..my fishing cabin 800 sq ft cinder block built in '59 appriased for 40k..1900 a year. It only good for one claim on the address ever.

Is it in a flood plain? If so what do you expect them to do? Honest question. Statistically stuff in flood plains will eventually flood and be a massive claim. You’re going to be charged for that risk. If there wasn’t a “one and done” claim I expect it would be even higher. You can self insure or pay out your personal risk annually.

Now if they charged folks outside a flood plain to subsidize the risk of those in a flood plain that would be shitty.

 

[Optimus🤖]

I totally get it! I hate Illinois government! They are right there with California and New York on who can pass the dumbest laws and tax their residents more. My wife and I both have good jobs as well and that is the only thing keeping us here. If it gets much worse, we're going to leave regardless.

We welcome you back to Vegas my friend! There are plenty of ladies that have interest in raising your rate .

 

[carsonsmith87]

We welcome you back to Vegas my friend! There are plenty of ladies that have interest in raising your rate .

Don't tempt me with a good time!

 

[BLKBTY]

I had USAA for home and auto for years. Then, when I bought my used 21 Tremor, my insurance went from $200/mo to $575/mo. Checked with Liberty Mutual, was $200/mo less for the exact same coverage. Obviously made the switch.

USAA has been pissing in my corn flakes too much over the years, so been slowly getting rid of them entirely, including banking.

I'm 100% VA disabled, so thankfully no longer paying property tax. Registration on the truck was taken care of with a permanent disabled vet plate... that alone saves $200/yr.

I told USAA to pack sand about two years ago. They were SO good for SO many years, then went to hell in a hand basket.

 

[JTredway]

I got butthurt early on with this too. They had a two-year shortage (as they never updated my annual tax totals when I sent them). Annually I pay $11K per year, and at the end of the year the mortgage company added a shortage amount of $12K which I needed to make-up instantly, or $1K per month. That was a wicked pissah.

Dude that is kind of what happened to me. They sent the beginning of the year escrow analysis and said it was short by $350 and if I paid it before teh deadline they wouldn't increase my rate and my monthly payment would stay the same otherwise it would be prorated over 12mo. Not a huge dollars right, just to be safe I paid in advance and paid $400 (so if anything my payment should've went down with the recalc and just more to principal). Those cock suckers still raised my rate and told me there was nothing they could do until another analysis was done the following year.... I went to war with those bastards over it and to them they were like bro this is crazy over like a $12 increase. I said no what is crazy is I followed your letter to a T, which at that time you redo another analysis but then tell me I can't get another analysis until next year, tired of this predatory shit and the fact that you hold an add'l two months in escrow bc you can legally and you do it for "shortages and pitfalls" and then I do what you say and you can't pull from that bucket of money. Fuck you, I will remove escrow totally. They tried three times to get me to stop cancelling the escrow process.