If you have ever tried getting auto insurance quotes for your car as if you were living in another city or state, you were probably surprised to learn that the quotes differ greatly depending on where you live. Sure, it may sound logical when comparing large cities to small towns, as the intensity of traffic and the risk of accidents is very different in such cases, but it’s not always the case. Quite often two little towns can have a difference of hundreds of dollars in average annual auto insurance quotes just because there’s a state border dividing them. Or it can even happen within the same state. Naturally, such a state of affairs raises a lot of questions concerning the practices employed by auto insurance companies with regards to their service pricing. But let’s look at the whole picture to see if the insurers are the ones to blame.
As mentioned in the previous passage, one of the main factors affecting auto insurance quotes with regards to your place of residence is the intensity of traffic, which is proportional to the number of cars in the area. Naturally, the larger is the city, the heavier is the traffic, the more frequent the accidents, the higher the claim payouts and the more expensive the insurance. It’s a rather obvious and direct chain of cause and effect that everyone seems to understand. Unfortunately, traffic intensity is not the only factor in play when it comes to determining the average insurance costs for a particular area.
The local car theft rate, which is directly affected by the local crime rate, is a very important factor influencing average auto insurance quotes. It’s evident that if cars get stolen more often in a particular area, insurers will face higher costs with local customers and in order to cover these costs they will charge higher premiums respectively. That’s why there can be very pronounced fluctuations in insurance quotes depending on the part of the city you live, especially if it’s a big city. For example, the average auto insurance quotes in Bronx can sometimes be twice as high as in Staten Island because of the difference in local car theft rates. That’s why it is important to assess the local crime situation of your neighborhood and take your auto insurance quotes adequately. Or move to a safer area for lower rates.
When it comes to moving, if you are really eager to get lower auto insurance quotes you may actually want to think about moving to a different state altogether. Local insurance legislation, or minimum requirements to be more precise are another factor that has a strong influence on average insurance costs. Each state has different requirements concerning the mandatory types of insurance and the minimum amount of coverage for the policy to carry. Obviously, this leads to a pronounced difference in average insurance quotes and situations when crossing the state border can halve your premiums instantaneously. Sure, it seems like a very global solution to the problem of expensive auto insurance, but if you’re thinking about moving to another place right now then make sure to pick a state with lower insurance requirements.
And let’s not forget about the local economic situation, which is yet another factor that has to be taken into consideration Areas with high unemployment rates tend to have higher percentage of uninsured drivers, which automatically raises auto insurance quotes for everyone. For example, in the state of Mississippi about 25% of all drivers don’t have a valid policy, and as a result this state is considered as one of the most expensive to get auto insurance in. That’s why you have to pay attention to the local economic situation if you need to know if your auto insurance quotes are adequate.
For a long time, the small business market for health cover has been in serious trouble. Unless the small and medium sized businesses banded together into trade associations, they did not have the buying power to get better premium rates from the insurers. As a result, they often paid as much as 20% more than large businesses for their health insurance. Worse, with smaller numbers of employees, insurers were very quick to raise premiums if one fell ill. This forced up the cost and made it difficult to fund expansion of the business. New Mexico is now a view into what could be the future for all small businesses.
On October 1st a new marketplace called SHOP (Small Business Health Options Program)is due to open . This will allow businesses to compare rates side-by-side. The expectation is the open competition between the insurers will force down the rates and produce a range of more affordable policies. When this is allied with the tax credits intended to set-off the costs of insuring the employees, small business should be able to expand their health coverage. For the record, business with less than 25 employees are already entitled to a credit representing 35% of their health insurance costs. Come 2014, this will rise to 50%. Put this alongside the new rules requiring insurers to spend at least 80% of the premium income on health benefits to the insured, and you have a recipe that should offer far better value to small businesses. If the insurers fail to spend the 80%, the amount unspent must be returned to the employers.
If you put all this together, the effect of the Affordable Care Act has already been felt in falling premium rates and the reduction of waste and some of the fraud built into the current small business insurance market. There’s also some evidence suggesting an improvement the quality of care given to people in the hospitals and clinics contracted into the networks. Given that the majority of new economic growth comes from the small business sector, it has been unfair to see the insurance industry act in a predatory way by forcing high premium rates on to start-ups and small businesses. As from October 1st, the final steps should be taken to greater transparency in setting the rates.
If you remember that businesses with less than fifty employees are not obliged to buy group health insurance. The research suggests that the vast majority of businesses employing more than fifty already have adequate insurance in place. It’s easier to recruit the right people and keep them motivated to do their best with a good health plan in place. Small business insurance is all about treating all the employees as if they were family. Adding together personal injury and health insurance gives everyone confidence. In this instance, the route being followed by New Mexico suggests all small business insurance problems may be eased.