Texas Insurance

Insurance premiums have fallen for millions of drivers across America and is expected to keep falling - or at least maintain constant - in the coming years is very profitable, insurers increasing pressure from competitors, regulators and support.

For over 20 years, prices for car insurance in only one direction. The change now is the result of a better car and driver course, with the booming results of the insurer “Wall Street investments.

Almost all large companies began snipping away in their insurance premiums as well as institutions of information, a trade group, it is projecting that prices are falling all around 1 percent on average this year to $ 692 for the average policy.

The State Farm Mutual Automobile Insurance Company, the industry leader with its subsidiaries, with approximately one fourth of the market, the nature and way of cutting prices in 31 states and the District of Columbia in 1997 and more than 12 to this year.

Most of the reductions were modest, ranging from a few dollars to several hundred dollars per year. And they have done little to the tripling of premiums over the past two decades. State Farm and its competitors have increased prices in some countries - and in some parts of the USA, where the average is lower - because the repair, medical care and legal costs continue to rise. And he has no relief for most drivers in New Jersey, which remains the highest rate.

However, some reductions have been significant: State Farm has lowered its prices in Hawaii by 15 per cent in January, and Hartford Financial Services Group, the 11th-largest auto insurers, gave their prices down in California 30 percent the next month. Larger, more efficient companies have seen their rights, and most have a general rule, the biggest cuts, say analysts, which helps to maintain or gain market share.

The image makes complex comparison purchase more important than ever. And with auto insurance offices increased profits - to 28 per cent in 1996, more than 50 percent last year and 18 percent expected at $ 11.3 billion in 1998 - consumer advocates say, reductions should be much deeper.

”Most companies are not big enough, that the reductions and the regulatory authorities are not difficult to grow as they should,’’said J. Robert Hunter, director of insurance for the Consumer Federation of America.

Based on his analysis, Mr. Hunter, a former Texas Insurance Commissioner, said insurers are expected to fall throughout the country at least 3 percent. In some countries - including New York, California, Rhode Island and Hawaii - the reduction should be at least 10 percent of the premium, he argues. Even then, Mr. Hunter said that insurance companies would enjoy profit margins of 10 to 15 percent, comparable to many other thriving industry.

Insurers acknowledge that the reduction cautious, fearful that the unforeseen costs can destroy their merits and believe that in a regulated sector backup copy of the escalation, the rate is much more difficult than climbing.

”That’s why we’re not just jump with both legs at a reduced rate,’’said Michael A. LaMonica, Vice President for automatic pricing Allstate Insurance Corporation, No. 2 in the country, insurers automobiles.

Some supervisors have forced the lower rates. Last fall, Elton Bomer, Texas, the commissioner of insurance means an across the board reduction of 5 percent.

Others, including Neil Levin, the New York Insurance Superintendent, and Chuck Quackenbush, the insurance commissioner of California, say rather than hammering companies in style, they tried prices down by lowering the administrative burden on the Fight against fraud and promoting competition.

Mr. Levin said that for him, for a reduction of 10 per cent, as Mr. Jäger request would probably be irresponsible”because each company has a different risk profile.”

Yet, Mr. Levin said that his office was told that insurance leaders of high gains in progress,”we expect to see prices continue to fall.