Car insurance premiums are based on the credit score of citizens. If you don't have a good credit score you will have to pay more for the vehicle that has been purchased. The issues today about having a car is that people have to pay for car insurance. Insurance shouldn't be based on credit score because, it's making good people that have perfect driving records but horrible credit score pay more for the vehicle that they buy from a dealership and the increase sales of unregistered vehicles. It should be based on your driving record then the credit score that you have and the sales of unregistered vehicles. However, If you can have a good credit and a bad driving record to get the car that you want compared to a bad credit and a good record
A common misconception is the cost of a car is the only expense you will pay related to a car. Yes, there is a price for the sale and title of the car, but there are many other fees associated with owning a car. When I was 23, I bought my first car. I got a great deal from my aunt.
If you are involved in an auto accident, instead of relying on the other driver’s insurance to pay your medical bills, your auto insurance is obligated to pay your medical bills for you. They are also required to cover any lost wages that you suffer as a result of the accident. Your insurance is
Although this is under Obamacare exchanges, it shows that state-run exchanges can effectively control the cost of premiums. A state that has efficiently and effectively controlled the health insurance markets is California. Through their state-run exchanges, California has managed to control the type and price of care provided by setting up a system that required all health insurers to provide the same deductibles and benefits within each of their coverage levels (Scheffler, Para. 7). Their plan is set up so that “insurers in all marketplaces must offer a defined set of “essential health benefits” in all plans and may offer plans at four coverage levels: platinum…followed in descending order of cost and coverage benefits by gold, silver, and bronze. ”(Scheffler, Para. 7)
Insurance companies will now be accountable to their customers for how they are spending premium dollars, and how much they are raising rates.
Since the signing of the Affordable care act (ACA) and Patient Protection act, there has been an increase in demand for health insurance (Hopes). The ACA requires individuals to get health insurance starting in 2014. This requirement has had an increase demand on the health insurance industry. Some laws that add an increase demand also add some burdensome regulation onto the market. Some of these regulations come from the ACA and the Patient Protection has added regulation onto the industry on how much in can loss.
Some people are at a ton of risk, such as being old or having a history of poor health. These people in poor health are more expensive to cover simply because they hold more risk for the insurance company as they require more
After the law that everybody had to have insurance was
Everyone in those cars get titled prostitutes or thieves. This is something that can affect
This is the principle of asymmetric information: only one party knows all the information. But if only sick people buy insurance, then the price of premiums will go up. This leads to even more healthy people forgoing insurance; with only sick people left, the price goes up even more, making more healthy people opt out. This adverse selection causes the private insurance industry to go into a deadly spiral towards market failure.
Insurance companies are making a huge amount of profit. The profit that these
Unfortunately, keeping an older vehicle can cause your insurance rates to be higher because older cars aren’t usually equipped with the modern safety devices that can reduce damage to the vehicle and lower the likelihood of injury to people inside the car. Airbags, crumple zones, safety cages, anti-lock braking systems and parking sensors are just a few of the features that auto insurance companies look for to reduce insurance rates. Although purchasing a new car may not be great for your budget now, it can pay off over time with lower insurance
This leads to a conclusion of Strong Competition in the Auto Insurance Industry. 2.2 PESTLE ANALYSIS Political Factors Currently there are no as such political issues relating to the auto insurance industry, but in the future if government plans to impose any law regarding to auto insurance like it did before stating that every driver is supposed to purchase car insurance. However, this increased the car insurance sales, benefitting GEICO so wouldn’t be considered as an issue. Economic Factors
By the car keeping me safe while driving it will save you a lot of money because you don't have to worry about me getting into an accident and wreaking the car Although my safety is extremely important making sure the car works is also significant. I'm sure used cars are not bad at all, but how do you know they wont break down? By me getting a
Even though when an individual file for a claim with their insurance company it is not as stressful, even if it was their fault. When a person is taking out a claim and depending on their insurance policy they could already be in a hole financially. Majority of the policy’s that people have set up are the ones where they are taking money from their pocket with the insurances giving just a little or not any at all. It’s not fair to most people because if they did not cause the accident. Why should they suffer and pay the price when they are obeying the
The insurance industry is about managing risk and protecting you from the unknown. As years have gone insurance policies and companies have changed drastically. Everyone in the United States is required to have insurance. People need car insurance, homeowner insurance, health insurance, and many others depending on their needs. Insurance changes rapidly.