October 21, 2009 - It was Massachusetts that was the last state (in 2008) to modify its regulations and allow individual insurance providers to set their own premium prices. Insurance companies are permitted to exercise this freedom as long as the premium rates that they suggest fall within the limits as designated by the state's insurance commissioner. This capitalistic approach (called "managed competition") to insurance provision creates enhanced competition levels as well as increased coverage diversity within the industry. And according to a statement from the Office of Massachusetts Consumer Affairs and Business Regulation, "Massachusetts consumers saved over $270 million in insurance premiums in the first year of managed competition."
In addition to managed competition, experts, consumer guides and professionals around the country commonly state that diligent comparison shopping is the primary key to saving money on automobile insurance. The Internet has significantly reduced the amount of time necessary to learn about and contact various insurance providers. Prospective insurance consumers are able to speed up the entire insurance purchasing process by quickly locating information concerning the stability of a given company, premium rates, customer satisfaction rates and more.
The major advantages associated with Internet auto insurance shopping:
- Side-by-side comparisons of the premium rates of multiple competitors;
- Convenient ability to locate discount providers;
- Simple to weed out companies that are just too expensive;
- In many cases, online policy purchasing is possible - thus eliminating the need to deal with company
- agents in-person;
- Savings of hundreds of dollars annually for the average consumer;
In addition to saving insurance consumers money, Internet-based insurance shopping websites also offer loads of industry-relevant information. Consumers are kept informed about:
- Available coverage types;
- Legally required minimum limits;
- Tips for effective shopping;
- Money-saving discounts that they may be available for;
- Advice on how to lower insurance rates;
- State-specific laws and noncompliance penalties;
According to the Wall Street Journal, large insurance companies like State Auto Insurance are dedicating increased efforts towards remaining technologically advanced in the industry. Technology is all about convenience. Saving time really does save money - and modern technologies allow companies - large and small - to reduce overhead expenditures and thereby pass those savings on to their customers.
According to State Auto's manager for agency services, David Delong, "We now have the Pangea for Insurance product in full production for agency and agent appointments in all of our 33 operating states. It's great; everyone is thrilled with the ease and convenience from our internal company associates to our new agency/agent customers." By continuing to make the automobile insurance shopping experience both simplistic and economical, car insurance premiums, although rising in general, are able to be at least marginally decreased.
