Insurance Industry Competition: How Competition Leads to Lower Premiums

Generally soft market conditions within the insurance industry enable you to find the cheapest auto insurance by comparing providers online.

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Finding cheaper car insurance rates can save your family hundreds of dollars per year.

Finding the cheapest auto insurance allows you to save money while still providing excellent protection standards for your financial safety.

Savvy investors understand that the thinned competition throughout the insurance industry has caused premium rates to drop so low that they have nowhere else to go but up. Leading CEOs from major corporations agree that market conditions for insurance-based investments are better than they have been in at least 4 decades.

You see, especially in the insurance industry, premium rates that continue to drop cause a surplus of demand – and simultaneously create a deficit of supply. Consider the following:

  • When there are more competing insurance providers in the insurance industry overall, premium rates drop.
  • When premium rates drop significantly, the word gets out. Public demand for insurance increases with high correlation in regards to how affordable it is.
  • When premium rates are very low, people who never would have otherwise, purchase insurance policies.
  • Increasing the number of policyholders increases the risks assumed by a given insurance company.
  • Increased risk factors in the insurance industry causes some competitors to drop out of the game completely.
  • Fewer competitors in the insurance industry causes a decreased supply.
  • According to the most basic economic laws, decreased supply causes an increase in price.
  • And of course, when an industry is showing signs of increased pricing schemes, competition will again increase.

And so the cycle continues – insurance has always been a cyclic game. So, how does all of this affect you?

Well, right now you’re in a great position as a prospective consumer of insurance policies. You have massive bargaining power. Your dollar holds excellent value with major insurance providers. At this point in the insurance cycle, competition is high. That means premium rates for the cheapest auto insurance available are low. And that is when you want to purchase your insurance policies!

To give you an example of just how much premium rates have been plummeting, consider the following:

  • In the first fiscal quarter of 2008, major insurers enjoyed premium rates of 13.5%.
  • By the fourth fiscal quarter of 2008, those premium rates had dropped to 6.4%.
  • And by the second fiscal quarter of 2009, they had further reduced to 4.9%.

Hurricane Katrina, the collapse of AIG – and the devastation of country-wide real estate markets have all acted in conjunction to begin creating hard market conditions within the insurance industry. Things are changing. Competitors are positioning themselves to come in as the premium rates begin to rise. That’s why now is an excellent time to purchase your homeowners, health, life and automobile insurance. You can begin by finding cheaper car insurance rates online today. It’s fun, fast, convenient and easy. So Enjoy!

Review: 2008 Nissan Altima Sedan

While reviewing the Altima Coupe, I joked that, while the Sedan may be a nice kid, the Altima Coupe would always be the favorite child. Now, after a few days in the sedan, I realize I may have spoken a bit too soon.

Nissan Altima Coupe

With an entry price of just $19,000 (or up to $30,000 with all the features added), the Altima offers itself to a very wide range of buyers, and provides excellent value to all of them. The comfortable seats, well placed interior, spacious cockpit are all high-above most competitors. I personally found the interior to be among the best Nissan has ever designed. It was very well thought out, and incredibly functional while maintaining a level of comfort and everyday usability that I hope every car strives for. Continue reading Review: 2008 Nissan Altima Sedan

Review: Ford Taurus X

Best as I can tell, the Ford Taurus X crossover vehicle is designed for the consumer who wants minivan features without the minivan exterior. Most models of this car come with a two-tone paint job that does not help the car appear sophisticated and classy. The specimen I drove was the top-of-the-line, Eddie Bauer Limited, in all black. With this paint job the car does present a decent profile. I think the three wide chrome bars that Ford is using on the nose of their vehicles now is basically “too loud” of a signature, but with the all black I do not mind as much.

Ford Taurus X

Inside the vehicle the Taurus X has lots of family friendly features. There is a built-in convex mirror that allows the driver a good view of what is happening in the third row of seats. This model has a DVD player that works with wireless headphones—or regular headphones for that matter. The second row of seats is a roomy set of captain’s chairs and a center console with cup holders, which makes transporting 4 adults quite comfortable. This center console does make the last row of seats much more difficult to access than in a mini-van, and I’m not sure kids could climb back there without some seat-folding help. Continue reading Review: Ford Taurus X

Review: 2008 Subaru Impreza

I was excited to drive the all-new 2008 Impreza 4-door sedan. Recently, a friend of mine had driven WRXs and STIs through the frozen tundra of the Yukon Territory of Canada. He raved about it’s performance, on-snow driving, and how fun it was to rally those cars through breathtaking scenery. Unfortunately for me, I didn’t have the opportunity to take it through such dramatic landscapes, nor was I driving the sport-packed engines of the WRX or STI.

Subaru Impreza

The introductory price of my Impreza was $17,000 and includes a 170-hp engine that is unfortunately under-powered. With such a rich heritage of rally car champions, getting into a Subaru and feeling the sluggish, unresponsive weight of the throttle disappointed much more than when driving an even more under-powered car but from a lesser pedigree. And as I remembered from driving Imprezas past, the seats were firm and uncomfortable. The final negative was the car looked and felt very cheap inside. The first glance around the cockpit revealed plastic-looking and feeling levers, knobs, and dash panels that aren’t inappropriate for an entry-level car, but again, with such a rich heritage of making great cars, it was disappointing to see how cheap this Subaru was. Continue reading Review: 2008 Subaru Impreza

Review: 2008 Volvo XC70

Not long after I drove the Volvo V70, I had the opportunity to drive the XC70. It was an interesting opportunity to compare these similar cars and get a feel for the differences.

Volvo XC70

Most notably are the obvious. With over 8 inches of ground-clearance, this car sat much taller than it’s little brother. It was slightly longer in the cargo area, and it’s exterior styling was much more aggressive and macho. I’m personally a big fan of the XC styling, and think that has that little something that begs to be taken outside, run through mud puddles, stormed up to the mountain, and hosed off when home. Not to mention the addition of stock four-wheel drive on the XC70s, the differences are slightly more than cosmetic, and Volvo has provided a car worthy of the mountain in both its function and appearance. Continue reading Review: 2008 Volvo XC70