Car insurance rates and metaphorical sodomy

[WRXtranceformed]

Never understood this industry, I don't think I've ever purchased products from companies that try so hard to discourage my repeat business

I really don't understand their business model. Why continue to raise rates on existing customers? I guess they just turn and burn and it works :dunno:

Most people find shopping for rates to be too onerous, which is why Progressive has done so well with the compare rates thing. The actual rates are based on math - as cost of replacement rises, so do rates. Back when I was a financial analyst for Allstate, the goal was to pay out no more than 85 cents on every dollar of premium collected. If that ain't happening, rates are going up. Contrary to popular belief, there are many lines of business that pay out more than they collect (loss ratio > 1.0).

I get that they have to maintain certain ratios, but does the cost to return my home to how it was before really rise that much every year? Are contractors' labor rates or the products themselves (ie granite, 2x4s) really increasing in price that much? For my belongings themselves, that replacement cost doesn't change so I guess I'm missing where they are seeing their dramatic rising costs unless it just has to do with higher number of claims being filed (ie a big flood hits). And that's not my fault if I've never filed a claim. The argument imo goes completely out the door for vehicle insurance...every day and every mile I put on my vehicle devalues it and the cost for those parts and labor should stay pretty consistent year over year.

Apparently Erie doesn't offer coverage in SC which would make sense why there were no agents local in SC and I had to look up the street in Ballantyne But this agent I tracked down can quote Kemper and Travelers so we'll see what they offer. The other big issue I have with homeowners insurance is a lot of companies apparently won't just quote homeowner's, it needs to be bundled with auto (which I am skeptical of, it's probably more just the agencies thinking it's not worth their time). I would be surprised if anyone can touch Esurance's rates here, the Allstate guy was floored when I told him our 6 month premium over the phone.