Dear Crabby, Why does insurance cost so much?

Dear Crabby,

I am sick and tired of paying so much insurance. Why do they always raise the rates? Have you found a way to keep your insurance low?

Sincerely, Ty R Ofpaying

Dear Ty R Ofpaying,

I understand your frustration and have been there myself. I think the insurance industry is pretty much out to make money for themselves and not out to protect its constituents as they might proclaim. I can remember when Mrs. Crabby and I were first married and we needed to get combined insurance for the first time. I called and was quoted a very low rate for our auto insurance. Of course, I did not have any tickets or any accidents on record, but she had a couple minor tickets on her record. They knew all of that and still quoted a very low rate. I agreed to the price and went in to pay the bill. When I arrived the agent told me that some more background information had surfaced and our rate was about 20% more than what was quoted. I asked what kind of background information he was talking about. He said that sevenDearCrabby years prior to this, Mrs. Crabby was on the same insurance as her sister who was apparently in a fender-bender that resulted in a claim being filed for some minor amount of money. My jaw almost hit the floor. “Are you kidding me?,” I exclaimed. “How are we being penalized for an accident that wasn’t involving either of us and was seven years ago?,” I wondered. The insurance agent kept a straight face and said this was the way it worked and held his ground. I paid it but was quickly looking for a new company in the meantime. About five years later I received a letter that my homeowner’s insurance was going up by 80% for no apparent reason. I was shocked and called my new agent immediately. I explained that I have always paid my bills on time, never had any claims, and this must be some sort of mistake. The person on the phone assured me that it was no mistake. They went on to tell me about the wildfires in New Mexico and the hurricane damage in the coastal regions and how this has caused a major hike in everyone’s rates. I explained that I do not live in New Mexico or in a coastal town and that I should not be penalized for natural disasters that happen thousands of miles away from me. They did not agree, so we parted ways and I found another company that was more reasonable. My basic conclusion after these experiences along with others is that you just need to call every few years and get a competitive quote from other agencies. It appears that the companies like to hike rates and see if the loyal customers will hang on anyway and buy into their stories about why the rates go up. When you see how profitable these companies are year after year and how they can afford all these television commercials, you realize that they are certainly out to make money first and foremost. So good luck and do your due diligence to make sure you are getting the best rates.

Sincerely, Dear Crabby

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