Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
The CPI index this morning (May 15) was down a bit, which is good; but Bloomberg cited that the very large increases in auto insurance (which is a portion of the index) had an affect on the CPI not being lower. So, as has been discussed here; auto insurance rates are being noticed by others, too.
Unrelated but related. News flash. Paid $7.48 for 24/pk of Dasani water bottles and $7.89 for 4/pk of bounty regular size paper towels yesterday at Ingles. Are you shitting me, how does the average schmuck afford this?
No one can say inflation is contained. Seeing a lot of cost increase inputs at work as well.
No net inflation for me other that insurance since I am getting 5% on my MM account.
Insurance industry is working together as monopoly even though they are regulated. I am sure people who are employed are getting more money in salary.
Reason - cars are costing more so more cost to fix in the event of an accident. Home - climate events are more frequent and fixing home is costly (I didn't make any claim in the last 20 years doesn't make it). My ins. is increasing by 70%. A minor weather event (Hail) in my neighborhood & I see few houses getting roof replacements - I am indirectly paying for them in increased ins.
Unrelated but related. News flash. Paid $7.48 for 24/pk of Dasani water bottles and $7.89 for 4/pk of bounty regular size paper towels yesterday at Ingles. Are you shitting me, how does the average schmuck afford this?
No one can say inflation is contained. Seeing a lot of cost increase inputs at work as well.
The CPI index this morning (May 15) was down a bit, which is good; but Bloomberg cited that the very large increases in auto insurance (which is a portion of the index) had an affect on the CPI not being lower. So, as has been discussed here; auto insurance rates are being noticed by others, too.
From NYTimes:
two years ago ... [t]he Covid pandemic disrupted supply chains... making spare parts hard to get; out-of-practice drivers emerging from lockdowns caused more severe wrecks; and technological advancements like motion sensors made even the simplest parts, like a fender or a rim, expensive to replace.
... Car insurers are still raising prices steeply: The price of motor vehicle insurance rose more than 22 percent in the year through April. ...
That has made car insurance a prominent factor preventing overall inflation from cooling more quickly, ...
A key reason car insurance costs are rising so fast right now has to do with how the industry is regulated. ... [A combination of insurers not having been able to set rates intelligently because of skewed historical driving patterns during the pandemic and because of regulatory backlogs when all the insurers finally filed for increases all at once.]
FWIW, I just got my quote and it's about 25% above a year ago (I'm on a 6 month cycle but I'm looking back to the mid 2023 bill). It's in line with the industry but it still stings.
I think there is a conspiracy between the auto manufacturers and insurance companies and state government.
A friend just knocked of her outside rear view mirror. $7000 to replace it with the al the electronics heated mirror etc.
When was the last time this junk was "optional" ?
Our state safety inspection requires you have working "parking lights", not just headlights. Why??
Who ever turns on just their "parking lights" any more? I shutter what it will cost to replace the bulb which is buried in the front end.
In a parking lot I saw a car whose external mirror had been hit but not knocked off completely. The owner had bought a clamp on rear view mirror rather than replace it. Probably cost $100 but I bet it won't pass safety inspection!
”Over the past three decades, SUVs have come to dominate new car sales in America, with other large vehicles like pick-up trucks also selling in large numbers. By 2025, some experts believe that the light-truck segment, including SUVs, will make up 78% of sales …
“But not only has the number of trucks on the road grown, they’ve grown in size too. For example, since 1990, pickup trucks have added 1300 pounds on average. Moreover, styling trends have created larger front ends that, aside from looking imposing, can decrease visibility from the cab, which critics – and studies - say increases the likelihood of accidents.
This confirms my observations that, at least in northern Michigan, average size of vehicles on the highways is getting bigger and bigger. Larger size impacts insurance costs in two ways: (1) More sheet metal means more to replace, repair, paint and (2) A larger heavier vehicle inflicts greater damage on that which it strikes. No doubt, for many driving a high-riding 4X4 outfitted for off-roading and getting 14-15 mpg fills some deep-seated psychological need, even if they seldom haul cargo and never drive off-road. Lunacy, ISTM to use something like that routinely to run to the grocery for a gallon of milk.
'for many driving a high-riding 4X4 outfitted for off-roading and getting 14-15 mpg fills some deep-seated psychological need.'
The vehicle marketing folks continue to tap the 'Peter Pan Syndrome', being a psychology term for people who find it difficult to grow up.' I fully believe this syndrome has become overwhelming in this country. One only has to watch the big truck and SUV ads watching folks drive their multi $10,000's vehicles over massive boulders, driving up to the edge of cliffs and driving through every type of terrain and way too fast on icy roads; and never missing a chance for a damn good power slide somewhere in the desert. I hope they have good cell service when they break the hell out of something on their 'pretty baby'. The positive part is that these things help keep a lot of folks employed in various industries in one capacity or another. The bad: we all pay higher vehicle insurance rates.
AS from the title of the wonderful 1963 movie: 'It's a Mad Mad Mad Mad World.'
Funny, instead insurance costs might be what finally drives many climate change deniers to accept reality. Many of the red states are most at risk from weather conditions affected by climate change— wildfires, hurricanes, tornadoes, droughts. Of course, many will just blame it on Joe Biden and the woke liberals.
@Old_Joe - not a good look on USAA who state their military friendliness as a come on.
"Military-friendly
We understand military life is unique. That’s why we offer products and services with the unique needs of the military community in mind."
I'm pretty sure getting screwed over on your auto insurance is not one of those unique needs military members and families are lookin for.
They are lately advertising the fact they've expanded eligibility for people who want to get in. Just TRY to get past that effing voice-prompt system. As bad as the one connected to Schwab's AMEX card, or my brief experience with MasterCard. Shameless. Needless to say, I did not join.
Car insurance from Yahoo Finance. Dated 15 May, '24: I had an ins. agent back East who went the extra mile. A true saint, a stand-up mensch. I know of no others like him. Have not heard of any others like him. Here's an article written as an apologia, rationalizing and making excuses for the price-gouging that's going on. https://finance.yahoo.com/news/car-insurance-costs-are-surging--but-its-not-because-of-price-gouging-195212537.html "...The higher fatality rates indicate that crashes are becoming more severe, pushing up the costs of repair and replacement as well as legal liability..."
What does that even MEAN? I didn't just fall off the turnip truck. More fatalities? Big effing surprise! Remember when dents could be hammered out and sanded smooth again? Check out the solidity of a 1958 DeSoto vs. a compact 2023 Suzuki sedan. Duh. But of course, he won't mention that aspect of the bigger picture.
Remember when dents could be hammered out and sanded smooth again? Check out the solidity of a 1958 DeSoto vs. a compact 2023 Suzuki sedan.
Note: dents can still be 'worked' out, just adjust for inflation.
Generally, we're talking more than fender dents, eh?
I was auto driving in 1963, in no seat belt cars. No 'new' safety glass in windshields, etc.
When I bought my first new car in 1966, some advertising mentioned the 'new' safety glass windshields, being: 'Beginning in 1966 cars came equipped with improved laminated windshields that could withstand nearly three times the impact of earlier versions. In the 60s and 70s Federal Motor Vehicle Safety standards were set for the strength and clarity of laminated windshields (FMVSS 205); windshield retention strength during accidents (FMVSS 212); roof rigidity in rollover accidents (FMVSS 216); and limits on windshield penetration (FMVSS 219). 'The car also had 'lap' seat belts.
My graduating class lost several classmates from auto accidents. They likely would have survived had they been driving a vehicle built in the last 10 years. Three weeks ago, 5 local high school kids were returning from a morning STEM class and the driver lost control of an Equinox. The SUV crossed the two lane road center line, dove into the ditch and then rolled about 6 times. Only one passenger had a broken leg, with the others having bangs and bruises. The photo of the SUV looked really nasty.
An add:
Auto Crumple Zones, a brief article. These zones are intended to protect the passenger compartment and the folks within.
Anyway, things aren't always simple, eh?; without knowing more. You've watched the 'crash tests?
Just bought a 2013 Odyssey with cash. Won't be paying much more for insurance than we've been paying on the 2002. With any luck, it will be our last van.
Wouldn't be buying umbrella insurance if we had spent the last 45 years buying cars on credit.
Great post by @catch22 immediately above this post. I wasn't driving in the 60's. but we ended up driving several cars from that era.
Unrelated but related. News flash. Paid $7.48 for 24/pk of Dasani water bottles and $7.89 for 4/pk of bounty regular size paper towels yesterday at Ingles.
LOL. You're asking for a haircut buying stuff that way at an old-school grocery chain. I haven't been to Albertsons since they started charging 69 cents an onion. That's about what they charge for a pound of onions at Latino, Asian, or Islamic groceries near us.
You can't buy paper products at Walmart, Dollar General, 99 Cent, Aldi's or similar where you are?
Buy reverse osmosis water by the gallon if you're local tap water makes a lousy cup of coffee. Then you can fill a canteen, an old plastic bottle, or some designer hydrator if you need to tote some around.
Still have a few rolls of the thin cheap toilet paper left over from the pandemic. Was all you could find in stores for a while. Seems like the thin stuff is what’s used in commercial establishments and public facilities. With everybody staying home, suppliers ran short of the good stuff and had too much of the thin stuff on hand - so it ended up on store shelves.
Hey, don't knock the "thin stuff". Our century-old SF home has a somewhat marginal sewer system- one section of the original 4" cast-iron sewer line, buried under the cement basement, apparently has a casting defect which left a small protrusion on the interior of the pipe.
After a couple of expensive episodes of emergency sewer line cleanout due to clogs snagged on that we switched to the thin stuff, and all has been well since.
This thread is getting flushed down the sewer pretty fast but Old_Joe's home maintenance tip with "thin stuff" is useful. My neighbor spent $5K on sewer line repair because evidently tree roots went into his sewer line just before the sewer line connects to the city's and he had to get it fixed. I did not want to ask the neighbor but I am presuming home insurance covers, subject to deductible, episodes like this. No?
@Old_Joe : " After a couple of expensive episodes of emergency sewer line cleanout due to clogs snagged on that we switched to the thin stuff, and all has been well since. "
After being a plumber for a number of years, first I've heard of this. I'll run this by others at the next retirees luncheon. Good for you, Derf
@BaluBalu - I'm very doubtful that any HO policy would cover "routine" maintenance. Tree roots are always a potential problem with sewer lines. These days they can use very high pressure water hoses to cut the roots from inside the pipe, but those roots will likely continue to grow back. From the internet:
Your homeowners insurance policy may cover sewer line damage if the proximate cause of the damage is a covered peril. Proximate cause is the first peril or hazard that caused the damage to occur. However, most of the time, broken sewer lines and the resulting damage are from wear and tear or other causes that home insurance companies specifically exclude from coverage.
@Derf- yes, one plumber sent a video snake through the under the house and we could clearly see the ragged edge of the defective pipe casting. I can't remember exactly, but it might have been in a cast iron fitting in the line rather that the pipe itself.
@BaluBalu...you would be responsible from the curb/edge of your property to the connection to the sewer main in the street...when you hear that jackhammer busting up the concrete get your AMEX platinum card out...it is gonna cost you a bundle....
as @Derf can attest to...as my Mom always said...the plumbers...they love to dig....$$$
This thread is getting flushed down the sewer pretty fast but Old_Joe's home maintenance tip with "thin stuff" is useful. My neighbor spent $5K on sewer line repair because evidently tree roots went into his sewer line just before the sewer line connects to the city's and he had to get it fixed. I did not want to ask the neighbor but I am presuming home insurance covers, subject to deductible, episodes like this. No?
I do not think so. Our neighbor's sewer line broke and fortunately they had insurance through a company called American Water Resources. They were quite difficult to deal with, but in the end they sent someone out to dig up the street and make the necessary repairs.
Yep. Trees live for the stuff. Septic system here. Them roots sneak their way inside through where the heavy lid fits on top. Than grow like hell once inside. Ummm … Probably time to close the lid on this one. Maybe I’ll send @Old_Joe a couple rolls of that thin stuff he seems to prefer.
Comments
No one can say inflation is contained. Seeing a lot of cost increase inputs at work as well.
Crazy. Keep spending more money Brandon.
Insurance industry is working together as monopoly even though they are regulated.
I am sure people who are employed are getting more money in salary.
Reason - cars are costing more so more cost to fix in the event of an accident.
Home - climate events are more frequent and fixing home is costly (I didn't make any claim in the last 20 years doesn't make it). My ins. is increasing by 70%. A minor weather event (Hail) in my neighborhood & I see few houses getting roof replacements - I am indirectly paying for them in increased ins.
@Baseball_Fan
What does this have to do with home/auto insurance?
If you want to discuss hot-button political issues, please use the Off-Topic section.
Thanks!
FWIW, I just got my quote and it's about 25% above a year ago (I'm on a 6 month cycle but I'm looking back to the mid 2023 bill). It's in line with the industry but it still stings.
A friend just knocked of her outside rear view mirror. $7000 to replace it with the al the electronics heated mirror etc.
When was the last time this junk was "optional" ?
Our state safety inspection requires you have working "parking lights", not just headlights. Why??
Who ever turns on just their "parking lights" any more? I shutter what it will cost to replace the bulb which is buried in the front end.
In a parking lot I saw a car whose external mirror had been hit but not knocked off completely. The owner had bought a clamp on rear view mirror rather than replace it. Probably cost $100 but I bet it won't pass safety inspection!
“But not only has the number of trucks on the road grown, they’ve grown in size too. For example, since 1990, pickup trucks have added 1300 pounds on average. Moreover, styling trends have created larger front ends that, aside from looking imposing, can decrease visibility from the cab, which critics – and studies - say increases the likelihood of accidents.
Article
This confirms my observations that, at least in northern Michigan, average size of vehicles on the highways is getting bigger and bigger. Larger size impacts insurance costs in two ways: (1) More sheet metal means more to replace, repair, paint and (2) A larger heavier vehicle inflicts greater damage on that which it strikes. No doubt, for many driving a high-riding 4X4 outfitted for off-roading and getting 14-15 mpg fills some deep-seated psychological need, even if they seldom haul cargo and never drive off-road. Lunacy, ISTM to use something like that routinely to run to the grocery for a gallon of milk.
Peace.
I fully believe this syndrome has become overwhelming in this country.
One only has to watch the big truck and SUV ads watching folks drive their multi $10,000's vehicles over massive boulders, driving up to the edge of cliffs and driving through every type of terrain and way too fast on icy roads; and never missing a chance for a damn good power slide somewhere in the desert. I hope they have good cell service when they break the hell out of something on their 'pretty baby'.
The positive part is that these things help keep a lot of folks employed in various industries in one capacity or another.
The bad: we all pay higher vehicle insurance rates.
AS from the title of the wonderful 1963 movie: 'It's a Mad Mad Mad Mad World.'
https://www.cnbc.com/2024/05/15/warren-buffetts-berkshire-hathaway-reveals-insurer-chubb-as-confidential-stock-its-been-buying.html
I had an ins. agent back East who went the extra mile. A true saint, a stand-up mensch.
I know of no others like him. Have not heard of any others like him. Here's an article written as an apologia, rationalizing and making excuses for the price-gouging that's going on.
https://finance.yahoo.com/news/car-insurance-costs-are-surging--but-its-not-because-of-price-gouging-195212537.html
"...The higher fatality rates indicate that crashes are becoming more severe, pushing up the costs of repair and replacement as well as legal liability..."
What does that even MEAN? I didn't just fall off the turnip truck. More fatalities? Big effing surprise! Remember when dents could be hammered out and sanded smooth again? Check out the solidity of a 1958 DeSoto vs. a compact 2023 Suzuki sedan. Duh. But of course, he won't mention that aspect of the bigger picture.
Generally, we're talking more than fender dents, eh?
I was auto driving in 1963, in no seat belt cars. No 'new' safety glass in windshields, etc.
When I bought my first new car in 1966, some advertising mentioned the 'new' safety glass windshields, being: 'Beginning in 1966 cars came equipped with improved laminated windshields that could withstand nearly three times the impact of earlier versions. In the 60s and 70s Federal Motor Vehicle Safety standards were set for the strength and clarity of laminated windshields (FMVSS 205); windshield retention strength during accidents (FMVSS 212); roof rigidity in rollover accidents (FMVSS 216); and limits on windshield penetration (FMVSS 219). 'The car also had 'lap' seat belts.
My graduating class lost several classmates from auto accidents. They likely would have survived had they been driving a vehicle built in the last 10 years.
Three weeks ago, 5 local high school kids were returning from a morning STEM class and the driver lost control of an Equinox. The SUV crossed the two lane road center line, dove into the ditch and then rolled about 6 times. Only one passenger had a broken leg, with the others having bangs and bruises. The photo of the SUV looked really nasty.
An add:
Auto Crumple Zones, a brief article. These zones are intended to protect the passenger compartment and the folks within.
Anyway, things aren't always simple, eh?; without knowing more. You've watched the 'crash tests?
Wouldn't be buying umbrella insurance if we had spent the last 45 years buying cars on credit.
Great post by @catch22 immediately above this post. I wasn't driving in the 60's. but we ended up driving several cars from that era.
You can't buy paper products at Walmart, Dollar General, 99 Cent, Aldi's or similar where you are?
Buy reverse osmosis water by the gallon if you're local tap water makes a lousy cup of coffee. Then you can fill a canteen, an old plastic bottle, or some designer hydrator if you need to tote some around.
After a couple of expensive episodes of emergency sewer line cleanout due to clogs snagged on that we switched to the thin stuff, and all has been well since.
After a couple of expensive episodes of emergency sewer line cleanout due to clogs snagged on that we switched to the thin stuff, and all has been well since. "
After being a plumber for a number of years, first I've heard of this. I'll run this by others at the next retirees luncheon.
Good for you, Derf
as @Derf can attest to...as my Mom always said...the plumbers...they love to dig....$$$