You Are Paying For Other People's Auto Insurance

[Anybodyhome]

So, I'm looking at my auto insurance statement this morning as it's up for renewal. I moved to USAA earlier this year and the savings were pretty amazing and I'm very happy with my decision. But I see this line on my statement:

NCRF CLEAN RISK RECOUP/ALLOC - VEH 02
Effective 08/01/2016
USAA AUTO POLICY 7101 NC

$16.48 added to my premium for the 6-month period. WTF?

So I look it up:

"Under N.C. state law the N.C. Rate Bureau sets rates based upon individual driving records via the Safe Driver Incentive Program.  This program penalizes drivers with traffic convictions or at fault accidents.  The N.C. legislature created the Motor Vehicle Reinsurance Facility in 1973 to create a pool to provide coverage for high risk drivers since N.C. law requires liability auto insurance.  NCRF typically loses money every year so the law allows a "Loss Assessment Recoupment" or "Allocation Surcharge" to all N.C. automobile policies.  This fee has been "buried" in the rate structure and not visible in the past on the auto policy declarations page.  In an attempt to be more transparent that fee will now be visible on all N.C. auto insurance polices and does create a level of confusion and extra work for agents to explain what this is about. "

Again, WTF? "This program penalizes drivers with traffic convictions or at fault accidents" They forget to mention it's also penalizing me because I'm a good driver. 

In a nutshell, NC requires you to have auto insurance. You're a shitty driver and get plenty of tickets and have accidents which are your fault, no problem! The State of North Carolina will simply add a fee to all the good drivers' insurance premiums to cover your sorry driving ass when your premiums get jacked because you're an idiot driver who probably shouldn't have a license to begin with.    

 

 

[pstall]

You're welcome.

 

- the government way

 

Sucks man i know.

[Ja Rhule]

2 hours ago, Anybodyhome said:

So, I'm looking at my auto insurance statement this morning as it's up for renewal. I moved to USAA earlier this year and the savings were pretty amazing and I'm very happy with my decision. But I see this line on my statement:

NCRF CLEAN RISK RECOUP/ALLOC - VEH 02
Effective 08/01/2016
USAA AUTO POLICY 7101 NC

$16.48 added to my premium for the 6-month period. WTF?

So I look it up:

"Under N.C. state law the N.C. Rate Bureau sets rates based upon individual driving records via the Safe Driver Incentive Program.  This program penalizes drivers with traffic convictions or at fault accidents.  The N.C. legislature created the Motor Vehicle Reinsurance Facility in 1973 to create a pool to provide coverage for high risk drivers since N.C. law requires liability auto insurance.  NCRF typically loses money every year so the law allows a "Loss Assessment Recoupment" or "Allocation Surcharge" to all N.C. automobile policies.  This fee has been "buried" in the rate structure and not visible in the past on the auto policy declarations page.  In an attempt to be more transparent that fee will now be visible on all N.C. auto insurance polices and does create a level of confusion and extra work for agents to explain what this is about. "

Again, WTF? "This program penalizes drivers with traffic convictions or at fault accidents" They forget to mention it's also penalizing me because I'm a good driver. 

In a nutshell, NC requires you to have auto insurance. You're a shitty driver and get plenty of tickets and have accidents which are your fault, no problem! The State of North Carolina will simply add a fee to all the good drivers' insurance premiums to cover your sorry driving ass when your premiums get jacked because you're an idiot driver who probably shouldn't have a license to begin with.    

 

 

I tho you liked Bernie Sanders?  This is perfect example of socialist structure.  Enjoy it, hommie.

[Anybodyhome]

2 hours ago, ARSEN said:

I tho you liked Bernie Sanders?  This is perfect example of socialist structure.  Enjoy it, hommie.

Don't pay much attention, eh? I was an early watcher of Sanders and put my support behind John Kasich. 

Actually it's just big government- you know, one of those things Republicans are against- as the NC Department of Insurance manages it and was signed into law by the Republican Governor at the time, James Holhouser.

[Snake]

But let's all get mad at Trump because he wants to get rid of the illegal immigrants that drive and cause this. In other words most insurance companies have found a sneaky way to make up for losses incurred by no/or under insured drivers. Shocking... 

[Kevin Greene]

No insurance, shyt, how about no license. All too common.

[cookinbrak]

Why do you think a lot of the cars in NC with SC tags have Mexicans driving them?

[Snake]

46 minutes ago, cookinbrak said:

Why do you think a lot of the cars in NC with SC tags have Mexicans driving them?

Actually SC is tougher on immigration. They just drive without a license in SC. NC gives them a license and even gives them free college education. 

[TheRed]

On 5/29/2016 at 5:02 PM, Snake said:

But let's all get mad at Trump because he wants to get rid of the illegal immigrants that drive and cause this. In other words most insurance companies have found a sneaky way to make up for losses incurred by no/or under insured drivers. Shocking... 

Yeah it's definitely those dastardly Mexicans causing all these issues on our roads, and not the white teenagers all driving around while texting, and inevitably plowing into someone at an absurd rate.

You would fit in perfectly in the tinderbox.

[Anybodyhome]

Less than 5% of all the abandoned, junked, unregistered and other nuisance vehicles I issue tow orders for belong to "illegal immigrants" or Mexicans. I realize that says nothing about driving skills, or lack thereof, but I'm hardly going to blame a very small minority of the population for the reason there are so many high risk drivers in NC. 

[Snake]

2 hours ago, TheRed said:

Yeah it's definitely those dastardly Mexicans causing all these issues on our roads, and not the white teenagers all driving around while texting, and inevitably plowing into someone at an absurd rate.

You would fit in perfectly in the tinderbox.

Stop alto it's all the same. I'm sure I could just go to China and drive fine even though I don't know the language. And last I checked those teenagers have to pass a driving test and have insurance. 

[Jase]

Okay, so I guess the OP just learned what insurance is?

[cookinwithgas]

When one of these bozos hit you and there's a better chance they will have insurance because of this, you might not think it was such a bad idea afterall, but yes of course it isn't fair. That's life.

[d-dave]

So here's a reality of insurance:  Just because you have it and are paid up, it does not mean that you are always covered.  Like there are TONS of under insured motorists.  Look at those cut rate insurance companies that advertise on late night TV.  That pool helps YOU out if you are ever in an accident with an under insured motorist and you don't have that coverage.  

As the law said, because NC requires you to have insurance, it doesn't mean everyone is going to have good insurance.  Many are going to do the absolute minimum to get on the road, and that often won't cover the more severe wrecks, especially that damage public infrastructure.  Like I knew a guy who was in a wreck where he not only totaled a $60k Mercedes, he also took out a TWC fiber optic box which was another $90k...he had that crappy insurance.  The pool helped to settle the claims by the Mercedes owner and TWC.

Same reason people who don't have kids pay taxes that go towards schools.  Or like the insurance pool for Beach homes... or Social Security and Medicare!  You'll appreciate it when you need it, and complain when you don't have it.