How much much does the law regulate insurance prices?

[Namm2929]

Hello All!

Is there any real difference in prices with the various car insurers or does the law so much regulate them that there is no real difference?
If anybody knows I would appreciate a response!

New York

[Highwayman]

Re: How much much does the law regulate insurance prices?

Of course there are price differences. You find out by shopping around and getting quotes from various companies.

What's your point here?

[Lexus]

Re: How much much does the law regulate insurance prices?

There is considerable difference in price of insurance for different insurance companies in the market. You can shop around to get the best service and coverage options at reasonable price by contacting different insurance agents.

[adjusterjack]

Re: How much much does the law regulate insurance prices?

Each state regulates insurance rates in different ways. It ranges from no regulation to prior approval.

New York adopted a permanent rule relating to flex rating, effective January 2010. The measure allows auto insurers to adjust their rates up or down within a 5 percent band without seeking approval from the state’s insurance commissioner. Insurers will still need prior approval from the insurance department for overall rate increases exceeding 5 percent in any 12-month period.

Flex-rating results in competitive rates between companies so it pays to shop around for auto insurance.

The following article provides a comprehensive discussion of rate regulation:

https://www.leg.state.nv.us/Session/76th2011/Exhibits/Assembly/CMC/ACMC279L.pdf

[tammy222]

Re: How much much does the law regulate insurance prices?

I never understand why insurance rates and services have to be done state by state.
Why can't it be done under one national US market.

[adjusterjack]

Re: How much much does the law regulate insurance prices?

I never understand why insurance rates and services have to be done state by state.
Why can't it be done under one national US market.

What? You want another Obamacare fiasco of federal regulation of other lines of insurance besides medical?

Anyway, here's a brief history lesson.

Ben Franklin helped the insurance industry in the US get started when he formed the first fire insurance company in Philadelphia in 1752. Back then, and for a very long time, insurance companies were formed state by state as needed and any regulation was reserved to each state.

In 1945 Congress passed the McCarran-Ferguson Act which allowed the individual states to continue regulating insurance within those states in spite of the fact that insurance companies were becoming national in scope. Congress justified that law as being in the public interest.

Regulation of insurance by the states is a cash cow for the states. In 2000, states collected more than 10 billion dollars in regulation revenue and spent less than 9 hundred million (about 8.4%) on actual regulation while the rest of the revenue went into the state's general funds for other purposes which, I suppose, accrued to the benefit of the public.

You can bet that are elected representatives aren't going to want to give up the regulatory cash cows in their own states so it's unlikely that insurance regulation will ever become federal.

[Nan52]

Re: How much much does the law regulate insurance prices?

With a republican controlled Congress you would think that they would want to change this system and create lower prices!

[adjusterjack]

Re: How much much does the law regulate insurance prices?

With a republican controlled Congress you would think that they would want to change this system and create lower prices!

You're very naïve.

[Highwayman]

Re: How much much does the law regulate insurance prices?

You're very naïve.

I'd use stronger language than that to describe "Nan".

[adjusterjack]

Re: How much much does the law regulate insurance prices?

Just complying with my New Year's Resolution to be a bit nicer than I was last year.

[Highwayman]

Re: How much much does the law regulate insurance prices?

Just complying with my New Year's Resolution to be a bit nicer than I was last year.

Congratulations on your apparent success.

[adjusterjack]

Re: How much much does the law regulate insurance prices?

Thanks.

Not sure I can last much longer, though.

[Unregistered]

Re: How much much does the law regulate insurance prices?

I never understand why insurance rates and services have to be done state by state.
Why can't it be done under one national US market.

I agree 100%.
I have been saying that for years!
Maybe it'll happen, everything else is changing these days.