Competition in the insurance industry is leading to lower prices
3 Comments Published by clay October 15th, 2007 in State and Local Politics.Insurance providers want your attention
If you think there are a lot of car insurance ads on television, some wacky and others straightforward, you would be right.
In the past five years, nationwide spending on the ads has zoomed from 26th to 10th among business categories tracked by TNS Media Intelligence – from $393 million in 2001 to $1 billion last year.
“I think the market right now is about as competitive as I have seen it,” said Sam Sorich, president of the Association of California Insurance Companies.
“It’s just red hot,” he said. “Companies have cut rates. There has been some good profitability, and as a result, it’s attracting more companies to be aggressive.”
Experts say the reason for the lower rates is a long-term decline in the frequency of claims, mainly driven by safety improvements such as air bags, side-door guards, and anti-lock brakes.
The average expenditure on auto insurance in
California ranked 18th among states in 2005, above the national average of $829 but well below the average expenditure of more than $1,100 in
I do business with two companies (Wawenesa and
Im glad that insurance rates are going down!!! I know that it helps me out quite a bit because I have many expenses as it is so if there is anywhere I can conserve some money I’m going to. I know with my insurance, I get a benefit in that I am a student with good grades so they give me a discount, so that helps me even more! I just hope it keeps decreasing with time!!
I like the fact that insurance companies are lowering their rates. I hope they see that it’s not so much about competition, but good buissiness. They have lower prices which will get more customers coming because of the low rates. Also with bills and loans and morgages it gets pretty hard to pay for high insurance. Earthquake insurance I know is really expensive, but if they lower their rates then they will get more customers and make more money. Even health insurance is high. If they follow the model of the car insurance companies they could probably make more money.
I love the fact that the insurance companies have lowered their price because I’m going to start driving soon and I don’t want my parents or I too pay high prices for insurance. And who doesn’t like to save money, especially me. I love to buy things that I need or want.
I’m also glad that people aren’t getting into car accidents.