<VV> Corvair Insurance in Florida - Warning

[Jay Pitchford]

The Rest of The Story  . . .

First, full disclosure: I live in Columbus OH where Nationwide is
headquartered, but have no policies placed with them or close/immediate
relatives that work for them. In fact, my wife's nephew was recently laid
off by Nationwide.

Nationwide, like any other insurance company, struggles to match insurance
rates with levels of risk. Florida residents choose to live in a pleasantly
warm portion of these United State that also happens to be surrounded by
water on three sides, and is a magnet for hurricane activity. Nationwide is
feeling the brunt of many seasons of heavy hurricane losses from policies
written there. The storm prediction models aren't terribly reassuring that
the risks going forward will be appreciably less, either.

I have a hard time coming up with any sympathy that Floridian homeowner/auto
insurance rates are going up. If Nationwide can't accurately charge their
risks back to the people living there and taking those risks, then (fill in
the name of your insurance company here) has to up the rates of the rest of
us. I would draw an analogy to health insurance for smokers. Do you smoke?
Do you pay more for your health insurance as a result?

Nationwide loses customers elsewhere by charging higher overall rates to
make up for their Florida losses. Other insurance underwriters that don't do
business in Florida have a competitive pricing advantage, so Nationwide
either has to charge Floridians more to stay competitive elsewhere, or
simply get out of Florida.

I think a 50+% price increase is a get-out-of Florida exit strategy ... if
Florida regulators won't allow them to simply pull out, they make an
outrageous rate hike request that is denied and then have the excuse they
need to tell the State of Florida to (ahem) "go pound sand".

By all means, switch insurance companies if Nationwide is pulling out.
Understand, however, that the companies you're switching to are going to
jack your rates up just as high; they are simply going to do it patiently
and stealthily, at a lesser rate of increase over a longer period of time.
The insurance regulators in Florida are OK with that, as it and slows the
exodus of taxpaying citizens from the state.

Jay Pitchford
65 Corsa Vert
Columbus (Go Bucks) OH


On Fri, Jan 15, 2010 at 3:47 PM, Grant Young <gyoungwolf at earthlink.net>wrote:

> Just a heads up to any Florida Corvair owners who might have their home or
> cars insured with Nationwide. I got a letter from them today saying that my
> policy was one of many that would not be renewed after being with them for
> about 10 years without any claims. Seems that Florida wouldn't agree to a
> 50+% rate hike scam. If you don't want to be left holding the bag, I would
> suggest you find another insurer on your terms before they cancel you. I
> still have 6 months left with them but will replacing them much sooner than
> that. And don't forget their motto of Nationwide is on your side :-).
> Grant
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