Are Car Insurance Companies Getting Greedy?

I don’t nomrally post on Saturdays, but today I was reading the news, and this popped up.

According to some interesting news about California’s car insurance rates, many are starting to wonder if car insurance agents are giving the best prices they can. The article states that California’s insurance rates, instead of climbing with inflation, have actually fallen from 1989 prices.

If car insurance companies in California can afford to provide lower rates than in past years, why aren’t rates falling elsewhere?

The article also explains the reasons these rates have fallen lately; lawmakers have been cracking down on insurance companies there. For instance, in California as well as other places, “Credit can’t be used as a rating factor”, says the article.

If car insurance companies can afford to insure in California, then they should be able to insure in the other states as well. Are the costs of running a car insurance business magically decreasing there just because lawmakers are putting pressure on them? No.

So, what are we going to do about this?

Everyone knows that the friend of lower prices is increased competition. This means that people need to shop around more. By voting with our dollars we can cause rates to get better. If we, as consumers, can take the time to compare these companies and choose the lowest prices, then we will get better rates. By rewarding companies that actually save us money, we can cause cheap car insurance prices to happen.

It’s not even that hard to compare rates anymore. It used to be one had to physically travel to an insurance agent and ask for a quote. This is not so today. With the power of the internet, comparison shopping has never been easier. Using the tool on this site is especially easy. With a few clicks anyone can have multimple insurance quotes.

Without a little effort to get these lower prices, insurance rates will only continue to increase.