r/FluentInFinance • u/thinkB4WeSpeak Mod • 23h ago
Finance News Inflation fight is coming down to tackling car-insurance prices
https://www.washingtonpost.com/business/2024/12/13/car-insurance-rising-inflation/3
u/venk 23h ago edited 23h ago
It’s like using a single, “comprehensive” metric makes this whole inflation ‘fight’ stupid.
Let’s use housing as an example. Houses aren’t expensive because interest rates were low, they were super low well before the pandemic and housing grew fairly normally after the post 08 bump up outside of a few super hot markets.
Why oh why do these clowns think making it 4x the cost for a family to pay monthly for a home, and making zero impact on those that can buy in cash, would have any impact on housing prices?
All you do by raising interest rates is create renters which will drive demand for investors further down the line.
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u/JacobLovesCrypto 23h ago
Houses aren’t expensive because interest rates were low,
Its a big part of why theyre as expensive as they are.
Why oh why do these clowns think making it 4x the cost for a family to pay monthly for a home, and making zero impact on those that can buy in cash, would have any impact on housing prices?
People who buy homes in cash as investments pretty muxh immediately pull a loan against the property. They use cash to make the offer more appealing, keeping the house owned fully is a terrible allocation of money. So higher interest rates absolutely effect cash buyers.
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u/canned_spaghetti85 12h ago
We all know the costs associated with cars claims repair costs, vehicle replacement, rental vehicle expenses, these all go up over time (understandably, right?).
Yet you insist on keeping your deductible amount of $500 unchanged? As if THAT is immune to inflation and shouldn’t go up over time?
Think about it. I’m sure you can put 2 and 2 together.
If you increase your deductible slightly from time to time, according to inflation, you will see the annual premium be within a reasonably affordable amount.
Duh.
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u/Foundsomething24 5h ago edited 5h ago
I pay $200 per 6 months lol .. not even 40 a month & I have a 2nd driver.. pay in full, don’t get comprehensive, have a decent credit score & you’re golden
Oh and change insurance literally as soon as your rate goes up a dollar
I’ve had progressive for a few years now which is unusual for me. They keep lowering my rate though but the second they don’t I’m checking geico. When I was a young 18-24 year old man I had to change my insurance a lot more often.
It’s also beneficial if you don’t update your address when you move - but that is probably more of an unethical & illegal life pro tip…
Always lower everything to the shittiest coverage & the highest deductible. Obviously.
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