Finance and Business

According to The Beatles, “It was twenty years ago today, Sgt. Pepper taught the band to play.” So, in 1988, voters in California passed Proposition 103 which, as history tells us, proved to be one of the best Propositions they have voted for. Why? Because it pushed forward reform of the automobile insurance industry. The result? Evidence shows California has the most competitive market in the US with the slowest increase in premium rates. If you ever wondered what consumer protection should look like, California is the model all the other states should follow. Curiously, Illinois is the most unregulated market and the least competitive. Are Californians pleased with the result? Looking at the pattern of increases in the rest of the US, the estimate is that Californian drivers have saved more than $17 billion in premiums. That’s almost $2,000 per driver. What’s not to like about that? With the last year of recession, the continuing low premiums and strong competition between the insurers guarantees better service standards on claims, just when family budgets benefit from low monthly instalments and fast payments if there is an accident.

But, when the legislature in any other state suggests applying the lessons learned, the insurance industry begins to spend money through the lobbyists and advertisers. Soon, everyone with even half an ear on the issue of insurance knows the Californian approach has broken the insurance industry. Local insurers teeter on the edge of insolvency, barely able to scrape even a few cents of profit from their underwriting. Were it not for the strong profits earned elsewhere, the Californians would be denied insurance altogether. Put the other way round, the rest of the US is subsidising Californian drivers. Except, of course, this is completely untrue. The insurance companies in the Californian market routinely report profits in excess of 10%. This is the lie that proves the automobile insurance industry at large runs on greed. A mere 10% profit margin is chicken feed and close to insolvency. Read the rest of this entry »

It is not anything new – you need to stay protected 24/7 if there is a chance of doing it. People sometimes think that protection is expensive. They have an idea in their head that you have to spend too much money so they do not worry about tomorrow. Especially when you are on the road you need a good protection. Your car can be your loyal friend that takes you to work and takes you back home but it ca turn into your worst enemy if you don’t think about protection on time.

Shopping around is not difficult especially since so many car insurance companies started to appear. They all have great offers and can be totally tempting. Internet is the best place to look for car insurance. Not only can you read the reviews from people tat have already gone through the car insurance but you can hook yourself up with some additional information and latest updates. You will be so surprised to find out you can actually do trust internet with such important decisions.

It is very easy to get quotes you need online. You are always one click away from a good advice or a nice offer. Internet is like a discount market. With services like insurance you can benefit lots. If you have a perfect driving record you deserve a good discount and internet insurers are ready to give you that. They are open for any kind of competition with other insurance companies that are selling their services online therefore you will always get a good price. The company will do whatever to win you over. It is a fact.

If you are a member of a professional driver’s association or you are a part of an automobile team – you will also get a discount. Anywhere you look – you can see the number that will satisfy you.

And do not forget that there are companies that insure cars, houses, boats and so on. If it is not the first thing you insure with the company they will literally “give you anything you want for being loyal”.

The car you drive can affect your payments as well. A cheap car will have low premiums; a brand new one will give you high premiums. Insurance companies can also advice you when you are about to purchase a car. They have a table with the statistics of the automobiles that are most likely to be stolen. T will help you in the future if you take their advice on time.

If you want to make sure your decision is a correct one – don’t rush into anything. Take as much time as you need but make sure it is a well-thought nicely considered decision. You can also get professional advice. Don’t be afraid or shamed to show you don’t know something. It is natural. Plus you will be a winner in the end when you have made the choice that was worth asking about. Read the rest of this entry »