Auto Insurance Competition Is Keeping Your Car Insurance Rates Affordable
A new report has revealed that competition amongÂ auto insurance companies may have helped drivers gain access to low-cost premiums over the past decade. According to the Insurance Information Institute (I.I.I.), a competitive industry is not only making coverage more widely available for all drivers, but it is makingÂ car insurance rates more affordable.
Competition Among Auto Insurance Companies Keeps Rates Low
The Insurance Information Institute has issued a report stating that, while some assert that rates are not equally affordable for all drivers across the country, it believes rates are very affordable, growing at a slower rate than gasoline prices and medical care.
The reason for the slower growth, according to the I.I.I. is the amount of competition growth among auto insurance companies.
The institute stated that, after reviewing data from the National Association of Insurance Commissioners (NAIC), it found that premiums paid by drivers haven’t increased much over the years.
On average, drivers paid $786 in 2002, $791 in 2010 and $819 in 2012, the latter of which being only 4.2 percent more than the same driver paid a decade earlier.
I.I.I. Refutes Variations in Car Insurance Rates Based on Jobs and Education
The I.I.I. report came in response to a release issued earlier this week by the Consumer Federation of America (CFA) that asserted affordable auto insurance was out of reach for drivers with lower education and job statuses.
“No matter their station in life, dozens of auto insurers are competing for the business of every driver who resides in the cities the CFA survey for its report,” Dr. Robert Hartwig, president of the I.I.I., stated in the release.
“These market forces have created a favorable situation for the nation’s drivers when considering what they’ve had to pay for other products and services essential to their daily lives.”
The CFA study examined the quotes of individuals with the same driving records and different education and job statuses to make its determination. The I.I.I., on the other hand, examined the year-over-year rates paid by all drivers across the board, but did not examine any potential differences in price based on the CFA’s criteria.
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