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rated:
I own a few rental properties and also some rental cars that I'm looking for the absolute cheapest insurance on.  To me insurance is just a reverse casino with a payout rate usually below 50% (even casinos typically payout over 90%). Then when the jackpot hits such as hurricane Katrina they refuse to pay and declare bankruptcy.  The only reason I even have insurance is because the lender(s) require it.  So I'm looking for the cheapest insurance with the absolute highest deductible.  Currently my homeowners has a $5K deductible.  If anyone knows of a company that offers higher please let me know.  I've tried Geico but their rates are almost identical to Allstate.  The best thing about Geico is I assume they wont spam you.  They quoted me $600/yr for $300K homeowners with max deductible and $400-600/6 month for 2 autos and 2 drivers.  With the auto I have to call my credit union to find out what the maximum deductible they will allow is.We have 5 cars which we rent out peer to peer through turo.  3 are uninsured but I am considering getting financing on them since credit unions offer auto loans at below 2%.  The problem is that adding $450/yr to your auto insurance for a 15K loan is the same as adding 3% to your interest rate.
BTW, I'm in California.


Andrew



 

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10% is ridiculous.  Between profits, fraud, and overhead I'm guessing you would be lucky to have a 50% payout rate.  Eac... (more)

antiandrewling (Oct. 13, 2016 @ 9:07p) |

No. Their return on equity probably isn't a good measure. But they do publish a "combined ratio" which is (claims paid +... (more)

TravelerMSY (Oct. 18, 2016 @ 7:36p) |

You are both sort of right. Pure loss ratio (actual dollars paid to insureds/claimants) is probably somewhere between 40... (more)

dannon35 (Oct. 19, 2016 @ 10:08a) |

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rated:
I carry high deductibles but I'm a big fan of good insurance.  My 17yo son is a very good driver but if he hurts somebody while driving I could get cleaned out if I didn't have liability on him.  I just had a homeowner's claim, new roof and new bamboo floor valued at $28,000 cost me $3000 deductible.

As far as your rates, it's totally dependent upon your zip code. 

rated:
To add to what kriskos said, among many other factors, your rates rely heavily not just on your zip code but also on address. In a range of 20 miles my rates would be about 2/3 in one direction, or half in another direction outside of my large city. In this area we have several zip codes that straddle the city line.
So you need to compare quotes for your situation from company to company vs. compare the rates to other folks here on fatwallet.

rated:
Is metromile available in your state

rated:
If you own multiple properties in CA and 5 cars you rent out to strangers IMHO you're really rolling the dice without a large umbrella policy. Turo supposedly covers you with a $1 million plan, but I'm guessing that does not come close to your assets. One bad liability claim and you're toast. You seem to be willing to roll the dice, and while that might make some sense for property losses (which tend to be limited), that's pretty scary when it comes to possible liability claims, the probability of which goes up quite a bit with your level of rental exposure and presumably sue-worthy assets.

rated:
The difference in rate between deductible values is very small. Finding a cheap company is best, and then making sure you maximize all your discounts (multi-policy, professional discounts, etc). Since you are in CA you can compare rates here: http://www.insurance.ca.gov/01-consumers/105-type/9-compare-prem...

Find the lowest 5 and get quotes for your situation / discount profile.

rated:
billybwilde said:   The difference in rate between deductible values is very small.
  Ehh... I'd disagree.  I've found the rate difference is large going below $1k deductible (Example: $500 vs $1k).  Higher than $1k deductible, there's little change.
Edit: was referring to auto insurance deductibles.   Home insurance does have pricing differences with higher deductibles.  I think I went with 2%(?) on  mine or I may have gone with  1%roof/2%rest.  Since roof replacement is not supposed to affect rates.

rated:
Is there a website to compare all insurance quotes side by side?

rated:
Bend3r said:   
billybwilde said:   The difference in rate between deductible values is very small.
  Ehh... I'd disagree.  I've found the rate difference is large going below $1k deductible (Example: $500 vs $1k).  Higher than $1k deductible, there's little change.

  There is a reason for the large drop in rates at $1k deductible : Insurance companies know from experience that anyone selecting a $1k or higher deductible does not have some hidden loss that they will file as soon as the insurance goes in effect. This eliminates the risk of "adverse selection" for the insurance company. It also works as another hidden tax on the honest poor that feel they cannot afford the larger deductibles.

Even though higher than $1k deductible produce less of a premium reduction, there is still a hidden benefit: I have a 2% homeowners deductible State Farm (which works out to around $5K for me) and a large deductible like that encourages me not to even bother with a claim unless I am sure the damage is above $5K. Every claim (even one that is not above the deductible) counts towards your claim experience and will (eventually) raise your rates.

To OP : check for % deductible options. State Farm offers a 5% deductible option on its homeowners policy, which  is higher than any fixed amount deductible they offer.

rated:
Jumi, I used to play poker professionally so I'm not afraid of risk.  When you look at how much is spent on overhead and employee compensation insurance begins to resemble buying the extended warranty on a new t.v.  
The thing that really bothers me about home owners insurance is the over-coverage.  Many people do not realize that unless you live in the ghetto the replacement cost is a small fraction of the value of the house.   Where I live a 400K houes costs about 100K to rebuild.  The rest of the value is in the land.  Yet people insure for 300-400K for said house.  
In the case of Turo it's very rare to have a liability claim in excess of $1 million.  I would guess in the range of 1 every 100 million to billion miles driven considering we each drive about a million miles in our life.  Also I would be forth in line behind the renter, the renter's insurance, and Turo. 

Anyway thats all besides the point.  I'm trying to get the minimum coverage the lenders will allow.  In the case of the autos that will allow me to borrow at 1.9%  Turns out the maximum deductible they allow is $1000.  I will check with the credit union to see what rates they offer.  Since they are not for profit they might be the lowest.

Fleetwoodmac I would love a place to compare rates side by side but I havent found one yet that doesn't ask for your email address and usually your phone number also to spam you.  Sometimes these companies will still call you years down the line.

rated:
antiandrewling said:   We have 5 cars which we rent out peer to peer through turo.  3 are uninsured but I am considering getting financing on them since credit unions offer auto loans at below 2%.  
 

  If you already own them, why do you need financing on them?

rated:
atikovi said:   
antiandrewling said:   We have 5 cars which we rent out peer to peer through turo.  3 are uninsured but I am considering getting financing on them since credit unions offer auto loans at below 2%.  
  If you already own them, why do you need financing on them?

  Because of the interest rates below 2%.  These are literally the lowest interest rates you can get that aren't promotional.  This is "free money" and it is easy to find real estate that returns 5%-6% after expenses.  Every 10K you borrow earns $300 a year.  There is also a hidden benefit in that if you don't have a mortgage it can actually INCREASE your credit score since it helps to have different types of loans including with installment payments.  This is one of the countless advantages of real estate.  It allows you to operate like a bank borrowing at low rates for higher returns.   You can also dump it into the SP500 index though this is more like gambling (like owning a casino when odds are in your favor).  I would only advise that for people who can handle the volatility.
 

rated:
antiandrewling said:   
atikovi said:   
antiandrewling said:   We have 5 cars which we rent out peer to peer through turo.  3 are uninsured but I am considering getting financing on them since credit unions offer auto loans at below 2%.  
  If you already own them, why do you need financing on them?

  Because of the interest rates below 2%.  


Good luck getting that rate on a used car.

rated:
atikovi said:   
antiandrewling said:   
atikovi said:   
antiandrewling said:   We have 5 cars which we rent out peer to peer through turo.  3 are uninsured but I am considering getting financing on them since credit unions offer auto loans at below 2%.  
  If you already own them, why do you need financing on them?

  Because of the interest rates below 2%.  


Good luck getting that rate on a used car.

  I have a 1.9% Penfed used car loan. They exist. 

 

rated:
Another problem with home insurance, esp on rentals, is that the insurer can easily drop you like hot potatoe if you make a large claim, and it will appear on CLUE report so you will have hard time getting with another insurer. So I have $5k deductible on all my rentals not so much to save premium, but because I don't plan to make a claim unless its a catastrophic (100% loss)

I use foremost, they seem ok

rated:
rufflesinc said:   Another problem with home insurance, esp on rentals, is that the insurer can easily drop you like hot potatoe if you make a large claim, and it will appear on CLUE report so you will have hard time getting with another insurer. So I have $5k deductible on all my rentals not so much to save premium, but because I don't plan to make a claim unless its a catastrophic (100% loss)

I use foremost, they seem ok

  Dan Quayle, is that you?

rated:
BostonOne said:   
rufflesinc said:   Another problem with home insurance, esp on rentals, is that the insurer can easily drop you like hot potatoe if you make a large claim, and it will appear on CLUE report so you will have hard time getting with another insurer. So I have $5k deductible on all my rentals not so much to save premium, but because I don't plan to make a claim unless its a catastrophic (100% loss)

I use foremost, they seem ok

  Dan Quayle, is that you?

  

rated:
antiandrewling said:   Jumi, I used to play poker professionally so I'm not afraid of risk.  When you look at how much is spent on overhead and employee compensation insurance begins to resemble buying the extended warranty on a new t.v.  
The thing that really bothers me about home owners insurance is the over-coverage.  Many people do not realize that unless you live in the ghetto the replacement cost is a small fraction of the value of the house.   Where I live a 400K houes costs about 100K to rebuild.  The rest of the value is in the land.  Yet people insure for 300-400K for said house.  
In the case of Turo it's very rare to have a liability claim in excess of $1 million.  I would guess in the range of 1 every 100 million to billion miles driven considering we each drive about a million miles in our life.  Also I would be forth in line behind the renter, the renter's insurance, and Turo. 

Anyway thats all besides the point.  I'm trying to get the minimum coverage the lenders will allow.  In the case of the autos that will allow me to borrow at 1.9%  Turns out the maximum deductible they allow is $1000.  I will check with the credit union to see what rates they offer.  Since they are not for profit they might be the lowest.

Fleetwoodmac I would love a place to compare rates side by side but I havent found one yet that doesn't ask for your email address and usually your phone number also to spam you.  Sometimes these companies will still call you years down the line.

  

​How big of a home do you have it rebuilt for 100k?

rated:
You're not really getting screwed buying insurance. Most property insurers are making single digit returns on equity. So maybe you're overpaying by 10% for the risk.

I'd suggest working with an agent that has access to multiple lines of insurance, They'll also know how low you can go gaming the replacement cost estimator without getting you into trouble.

Your rates are already pretty low. I'm in a high risk area in a old house and pay over ten times more than you for similar coverage. 

rated:
TravelerMSY said:   So maybe you're overpaying by 10% for the risk.

 

  Are you saying, on average, most people pay 10% more in premium than the amount they get back in claims?

rated:
10% is ridiculous.  Between profits, fraud, and overhead I'm guessing you would be lucky to have a 50% payout rate.  Each one of these eats up more than 10%.  The commission on a life insurance policy can be upwards of 30% alone.  Try to sell that policy that cost 10K on the secondary market and see how much it's worth.  

rated:
No. Their return on equity probably isn't a good measure. But they do publish a "combined ratio" which is (claims paid + expenses) / premiums received, and it's nowhere near 50% on average. Typically 100 +/- 10. It's volatile due to stuff like hurricanes. I'm only speaking here of home insurance property/casualty.

rated:
TravelerMSY said:   No. Their return on equity probably isn't a good measure. But they do publish a "combined ratio" which is (claims paid + expenses) / premiums received, and it's nowhere near 50% on average. Typically 100 +/- 10. It's volatile due to stuff like hurricanes. I'm only speaking here of home insurance property/casualty.
  You are both sort of right. Pure loss ratio (actual dollars paid to insureds/claimants) is probably somewhere between 40-60% in a "normal" year. Combined ratio (including all expenses, commissions, etc.) is around 90-100% in good years.

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