A lot of people ask me why insurance costs so much. Maybe they are a safe driver, or never file claims.
It’s amazing how much insurance carriers pay out in claims. The auto accident I was involved in recently cost about 40K when you add up the medical bills for both parties, 2 vehicles that were a total loss, rental car reimbursement, (hey! it adds up fast), towing the vehicles, & paying body shops to inspect the vehicles.
This doesn’t even include internal administrative costs, such as paying for adjusters.
Insurance companies rates are overseen by the state Department of Insurance and they have to file for both rate increases and rate decreases.
