I started a thread about Geico Insurance and their sky high renewals and premiums... Geico renewals are sky high

Here's the reason why...

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Berkshire Hathaway released its 2022 annual report, which includes GEICO's performance.


During 2022, GEICO experienced a reduction of 1.7 million policies-in-force after flat year-over-year growth from 2020 to 2021. According to the most recently published A.M. Best data for 2021, the five largest automobile insurers had a combined market share in 2021 of approximately 60.5% based on written premiums, with GEICO's market share being the second largest at approximately 14.4%. GEICO's management estimates its current market share is approximately 13.9%.

In 2022, GEICO had a pre-tax underwriting loss of $1.88 billion, compared to a ~$1.26 billion profit in 2021. Combined ratio went from 96.7% in 2021 to 104.8% in 2022. Losses in 2022 reflected significant increases in average claims severities, primarily due to significant cost inflation in property and physical damage claims, which began to accelerate in the second half of 2021 and have continued through 2022. Increases in used car prices produced increased claims severities on total losses and shortages of car parts contributed to elevated claims severities on partial losses. In addition, injury claims severities continued to trend higher in 2022.

Premiums written increased $712 million (1.9%) in 2022 compared to 2021, reflecting increases in average premiums per auto policy due to rate increases, which were substantially offset by a decrease in policies-in-force.

Underwriting expenses decreased $881 million (16.2%) in 2022 compared to 2021, primarily due to significant reductions in advertising costs and lower employee-related costs. GEICO's expense ratio was 11.7% in 2022, a decrease of 2.8 percentage points compared to 2021, attributable to both the decrease in expenses as well as the increase in earned premiums.

GEICO has successfully obtained premium rate increase approvals from certain states in response to the significant claims costs increases it has experienced in recent years. As a result, it expects to generate an underwriting profit in 2023.

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Basically lining the pockets of greedy corporate ****s which are already in a racket business.

Brian Earl Spilner said:

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Basically lining the pockets of greedy corporate ****s which are already in a racket business.

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I don't know if you realize this, but companies, both public and private, are in the business to make a profit.

If they don't make a profit, they eventually go bankrupt and have to discontinue providing products and services.

As far as being a scam, people have car accidents all of the time.

In fact, in my direct family we've had five accidents in the last two years, fortunately fender benders.

Insurance is there to cover for costs involved in those accidents.

I don't like paying for insurance, but I sure like it when I need to file a claim.

And you can also see insurance companies can loss $ and have net losses as well as gains.

Know what else happens all the time? Insurance companies weaseling their way out of paying out a legitimate claim.

For something you've already paid for, by law.

txaggieacct85 said:

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Brian Earl Spilner said:

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Basically lining the pockets of greedy corporate ****s which are already in a racket business.

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In fact, in my direct family we've had five accidents in the last two years.

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Quit making it so expensive for the rest of us!

And I thought Geico had a bad year...

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"While 2022 was a year of significant growth at State Farm, our annual operating results were not at the level we expect as we consider each affiliate's financial strength and long-term performance. At the same time, the organization remains financially strong. We're pleased we could assist our customers during the pandemic and we're there to help them navigate the current period of high inflation. As we take actions to improve our operating performance, we look forward to helping more people in more ways as we begin our next 100 years."

State Farm's auto insurance business had a $13.4 billion underwriting loss in 2022.

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Auto The State Farm auto insurance business represented 61 percent of the P-C companies' combined net written premium. Earned premium was $45.7 billion. Incurred claims and loss adjustment expenses were $48.4 billion and all other underwriting expenses totaled $10.8 billion. The underwriting loss was $13.4 billion.

Ranger1743 said:

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txaggieacct85 said:

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Brian Earl Spilner said:

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Basically lining the pockets of greedy corporate ****s which are already in a racket business.

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In fact, in my direct family we've had five accidents in the last two years.

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Quit making it so expensive for the rest of us!

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They were all literally less than fender benders. In fact, I didn't want to use insurance one a tap in a parking lot, but the lady insisted. And my families accidents don't affect your premium.

Hurricanes affect homeowners, but no my accidents don't affect you

Brian Earl Spilner said:

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Know what else happens all the time? Insurance companies weaseling their way out of paying out a legitimate claim.

For something you've already paid for, by law.

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I've never had an insurance company weasel out of a claim.

My youngest daughter (junior at A&M) did get into a wreck where she wasn't paying attention and tapped the car in front of her. She was in the middle lane and the person she barely hit panicked and turned into the left lane where he was hit by a truck. It really should have been nothing, but then the driver of the truck sued my daughter (I know an ambulance chaser law firm initiated the lawsuit with the driver).

So Allstate is defending my daughter.

my daughter barely hitting the car in front of her didnt cause the second wreck, but lawyers like this don't care.

The driver of the vehicle and his lady companion were not injured (I stood right across from them when the sheriff came) and yet they filed a lawsuit for bodily injury. There was nothing wrong with them.

They were in a truck with a trailer, clearly landscape work.

The driver didn't have insurance or a drivers license and was clearly not a citizen.

Doesn't stop them from suing for nothing.

it does make my blood boil though.

The case is still in progress.

A lot of car accident injuries don't manifest until hours or days after the accident. That they weren't injured at the scene is meaningless.

txaggieacct85 said:

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Ranger1743 said:

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txaggieacct85 said:

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Brian Earl Spilner said:

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Basically lining the pockets of greedy corporate ****s which are already in a racket business.

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In fact, in my direct family we've had five accidents in the last two years.

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Quit making it so expensive for the rest of us!

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They were all literally less than fender benders. In fact, I didn't want to use insurance one a tap in a parking lot, but the lady insisted. And my families accidents don't affect your premium.

Hurricanes affect homeowners, but no my accidents don't affect you

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I was only joking. But I'll respectfully disagree here. Insurance premiums are actuarial in nature. A higher number of claims filed per capita will absolutely increase the average premium. An uptick in poor driving during Covid helped to increased premiums, for example. Insurance is essentially de-risking by cost sharing, after all.

Edit: Sorry to hear about your daughter, that sucks. I guess you're dealing with the other two drivers of increased premiums in Texas - a large number of uninsured/unlicensed motorists (shocker) and and increasingly litigious society.

TxAG#2011 said:

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A lot of car accident injuries don't manifest until hours or days after the accident. That they weren't injured at the scene is meaningless.

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Yeah….they get injured when they talk to a lawyer

This thread is pointless. I told you all as much in the other thread.

"Insurance is a pooling mechanism. Companies take the premiums from all to pay the claims of the few.

This is specific to auto but the ratio you want to pay attention to is the combined ratio. The industry has historically collected enough money to keep 10-15 cents on the dollar after paying claims and overhead. However, the inflation, litigation, etc. trends already noted in the thread killed those margins over the last 2 years. The Q4 22 numbers will be released in a week or two but the combined ratios are expected to be north of 100%. Meaning every dollar collected was insufficient to pay everyone's claims.

Expect meaningful increases until that changes,

https://www.fitchratings.com/research/insurance/us-auto-insurer-underwriting-results-take-a-negative-turn-04-03-2022

Homeowners results are more varied by geography(hail, quake, flood, wind, etc) but aren't any better."

What is an "underwriting loss"? Did the companies show a loss on their financials? Or is an underwriting loss some other metric of performance?

I call BS.

There's was nothing wrong with them. The lawyer conjured up an injury. Don't feed me this BS.

Additionally wasn't the cause of their wreck

Allstate is trying to get it dismissed. If they don't I will counter sue

Premiums collected < (claims paid + expenses) = underwriting loss

txaggieacct85 said:

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I call BS.

There's was nothing wrong with them. The lawyer conjured up an injury. Don't feed me this BS.

Additionally wasn't the cause of their wreck

Allstate is trying to get it dismissed. If they don't I will counter sue

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My wife was in a left turn lane, when the light changed the person next to her cut in front of her to make the turn from their straight only lane. Clipped our car. Lots of damage to our front fender. Cops made a report, the lady apologized, she got a ticket and everyone departed. A few weeks later USAA called us and said the lady was suing because my wife waved her in then gunned the car into her. The USAA rep was laughing when he told us, I asked what we needed to do and he said nothing, "...our lawyers are very good at getting those suits stopped almost as soon as they're filed..." He must have been right, it's been over 5 years and we never heard another word.

That sort of scenario is almost always a fishing expedition. As soon as the plaintiffs attorney realizes they're going to receive push back it never goes anywhere.

Clear liability is another matter entirely.

Agree with last two posts.

These lawyers chase everything and hopes something sticks.

Here's the low life attorney that filed the lawsuit.

Personal Injury Lawyer Houston - Car, Truck Accident Attorney | LASSITER LAW FIRM (legalteamhouston.com)

lol the picture of the lawyer is comical. Puts on mean face to make you think he is a Jim Adler. "I'll fight for you!"

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physical damage claims, which began to accelerate in the second half of 2021 and have continued through 2022

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sort of ties right in with the spike in the PI advertising you see doesn't it. Son literally tapped a car that slammed on the brakes in front of him in Austin. No damage on my son's car. Insurance Co gets a claim for north of $800k for all kinds of back injuries and work loss claims! Clearly the docs, radiologists, pain mgmt guys, etc. are on the PI's "team". Get a dash cam NOW is my advice.

https://www.bestbuy.com/site/garmin-dash-cam-mini-2-black/6464382.p?skuId=6464382&ref=212&loc=1&extStoreId=258&ref=212&loc=1&gclid=EAIaIQobChMI0fDPsde7_QIVCBhMCh1mmABiEAQYASABEgLwtPD_BwE&gclsrc=aw.ds

southernskies said:

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lol the picture of the lawyer is comical. Puts on mean face to make you think he is a Jim Adler. "I'll fight for you!"

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and hes a teasip, which makes this even more insulting

pretty funny. I was lingering in his website and a chat box popped up with a real person on the chat.

She asked how I could help.

I said to quit filing frivolous lawsuits, especially against my daughter.

she said "sorry for the inconvenience"


i said "inconvenience?" this is more than an inconvenience.

Then she actually asked for my email address.

I asked her if she thought I was an idiot.

She said is there anything else i can help you with

I said yes., quit filing frivolous lawsuits.

Maybe we will have to find someone else to pay for the field goal nets and 90% of tv commercials. My sympathies to these poor companies just scraping by trying to make a nickel.

Picard said:

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TxAG#2011 said:

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A lot of car accident injuries don't manifest until hours or days after the accident. That they weren't injured at the scene is meaningless.

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Yeah….they get injured when they talk to a lawyer

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sure there are people who try to advantage of the the system. But I can't tell you how many cases I've done where people refused transport to realizing they have multiple herniated disks or other injuries.

TxAG#2011 said:

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A lot of car accident injuries don't manifest until hours or days after the accident. That they weren't injured at the scene is meaningless.

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Lol, like the guy who sued my company after an accident where he claimed we contributed to the cause. He and the others in his truck weren't injured the day of the accident, but several weeks later "Johnny" filed suit claiming he had back injuries and couldn't work. His wife was a plaintiff also because apparently Johnny couldn't fulfill his husbandly duties. And even "little Johnny" was a plaintiff because he didn't have the same dad to play ball. Total claim was over one million.

We hired a PI to look into it closer and he got video of Johnny climbing a tree in his backyard with a climbing deer stand. We presented the evidence and threatened to countersue for a false claim. Johnny and family dropped their suit the next day.

txaggieacct85 said:

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My youngest daughter (junior at A&M) did get into a wreck where she wasn't paying attention and tapped the car in front of her. She was in the middle lane and the person she barely hit panicked and turned into the left lane where he was hit by a truck. It really should have been nothing, but then the driver of the truck sued my daughter (I know an ambulance chaser law firm initiated the lawsuit with the driver).

So Allstate is defending my daughter.

my daughter barely hitting the car in front of her didnt cause the second wreck, but lawyers like this don't care.

The driver of the vehicle and his lady companion were not injured (I stood right across from them when the sheriff came) and yet they filed a lawsuit for bodily injury. There was nothing wrong with them.

They were in a truck with a trailer, clearly landscape work.

The driver didn't have insurance or a drivers license and was clearly not a citizen.

Doesn't stop them from suing for nothing.

it does make my blood boil though.

The case is still in progress.

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What does your lawyer charge per hour? If you win, is it a sunk cost?

It's either a staff attorney or someone with a panel firm. Either way, the cost is added on to the total amount incurred on that claim and will be there regardless of whether they pay anything to the plaintiff.

It's been 5-10 years since I kept track of such things but $150-300 per hour is the "normal" range that I remember.

Regular car wreck insurance defense lawyers aren't billing at 300/hr. Many are in house or on flat fees. The ones that do bill out hourly are on the low end of that range.

I was an adjuster and part of my job was to audit the billings. That range is what I remember seeing most regularly.

Staff attorneys are definitely on the low end of that. It wasn't uncommon to see a panel rate between $200-300.

An update on Geico... https://mailchi.mp/coverager/king-charles?e=4ff10041c3

Millions lost, millions gained

After reporting losses in six straight quarters, GEICO has achieved a $703 million underwriting profit in the first quarter of 2023 and a 92.7% combined ratio.

GEICO's pre-tax underwriting earnings in the quarter reflected higher average premiums per auto policy, a reduction in advertising costs, as well as favorable prior accident year development.

Underwriting expenses in the quarter were $931 million, a decrease of $257 million (21.6%) compared to 2022. GEICO's expense ratio in the first quarter of 2023 was 9.7% compared to 12.5% in 2022. These decreases were driven by the reduction in advertising expenses.

Premiums written in the first quarter decreased $205 million (2%) compared to the first quarter of 2022.

Since March 31, 2022, GEICO's total number of policies decreased by 2.4 million (13%).

infinity ag said:

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txaggieacct85 said:

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My youngest daughter (junior at A&M) did get into a wreck where she wasn't paying attention and tapped the car in front of her. She was in the middle lane and the person she barely hit panicked and turned into the left lane where he was hit by a truck. It really should have been nothing, but then the driver of the truck sued my daughter (I know an ambulance chaser law firm initiated the lawsuit with the driver).

So Allstate is defending my daughter.

my daughter barely hitting the car in front of her didnt cause the second wreck, but lawyers like this don't care.

The driver of the vehicle and his lady companion were not injured (I stood right across from them when the sheriff came) and yet they filed a lawsuit for bodily injury. There was nothing wrong with them.

They were in a truck with a trailer, clearly landscape work.

The driver didn't have insurance or a drivers license and was clearly not a citizen.

Doesn't stop them from suing for nothing.

it does make my blood boil though.

The case is still in progress.

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What does your lawyer charge per hour? If you win, is it a sunk cost?

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Allstate is representing her

TxAG#2011 said:

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A lot of car accident injuries don't manifest until hours or days after the accident. That they weren't injured at the scene is meaningless.

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-cough- bullsh_t

People who are severely injured and therefore honestly bring suit seeking 5, 6, or 7 figures in damages, have acute injuries that manifest on scene and are diagnosed in the ER. Fatalities. Traumatic brain injuries. Fractured spines or ruptured discs. Broken bones and torn ligaments. These people aren't walking around the accident scene denying injury.

People with mild, soft tissue injuries who feel sore two days later, generally aren't severely injured. People who talk to a lawyer and then start treatment at a lawyer-referred chiropractor or pain doctor to begin building a damages model, aren't severely injured. But that doesn't stop the scammers from scamming, thereby driving up the costs for everyone. These claims far outnumber the legitimate personal injury claims.

txaggieacct85 said:

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I don't like paying for insurance, but I sure like it when I need to file a claim.

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I don't, because I know they're gonna raise my premium.

I own an Independent Agency in Austin so see both sides of the coin with insurance. The "weaseling their way out of paying a claim" statement is so overused and inaccurate. While there are instances where an adjuster doesn't pay for something initially are not the full amount, 90% of people who think this is caused by the insured being uneducated about insurance and their specific policy. If you go into a claim thinking something is going to be covered which isn't, you are obviously setting yourself up for disappointment. Every week I get someone who is pissed about a claim and come to find out they think that wear and tear to their AC unit should have been covered or their rental coverage should kick in on their auto insurance when they have a mechanical breakdown (just an example).

And yes, insurance companies are here to make a profit. Almost everyone lost their ass last year and doing poorly again this year. We are 1-2 major storms away from government intervention, similar to the 90's mold issues.

Claims have skyrocketed .... really a perfect storm of conditions and its going to get worse before it gets better.

If you own a rental property and have landlord insurance look out. Things are getting very bad there. But all home and auto products will continue to go up.