Huge losses from national disasters prompt industry to jack up prices and pull back from some markets; ‘worst possible scenario’ for consumers
After Allstate suffered billions of dollars in losses and failed to get the rate increases it wanted, it resorted to the nuclear option.
The insurance giant threatened last fall to stop renewing auto insurance for customers in three states that hadn’t given in to its demands, which would have left those policyholders scrambling for coverage. The states blinked.
In December, New Jersey approved auto rate increases for Allstate averaging 17%, and New York, a 15% hike. Regulators in California are allowing Allstate to boost auto rates by 30%, but still haven’t decided on its request for a 40% increase in home-insurance rates after the insurer refused to write new policies.
For many Americans, getting insurance for both their cars and homes has gone from a routine, generally manageable expense to a do-or-die ordeal that can strain household budgets.
So Virginia is weird. You can technically drive without insurance but you have to pay a one time fee to DMV and register as uninsured. In truth though you will not likely get an auto loan without it. And good luck if you get in an accident. I’m guessing that this is a hold over for vehicles that are “farm use” or for “antique vehicles” that might need to use the roadways occasionally but don’t really need expensive coverage.
You also have to pay the uninsured motor vehicle fee when you renew registration, so that comes out it $500/year or $40/mo. So you end up paying 1/3 to 1/2 of insurance and don’t get any coverage.
In Va, it’s not a 1 time fee, it’s a $500 fee on top of your yearly registration.
But that exemption it’s also going away this year in July. After that insurance will be required.
I didn’t know it was annual. Wow that’s even worse.
That was kind of the point, they want people to have insurance.
Car insurance costs more than $500 a year generally.