Can-car-insurance-rates-go-down-without-customer-actionWe have recently spent much attention on ways to find cheaper car insurance premiums. In a series of blog posts we focused on efforts required from the side of the insurance client such as responsible driving, shopping around etc.

By doing the right things and putting in some effort, it is possible to reduce your car insurance premium. But can these car insurance rates reduce without any action on the part of the consumer?

It is interesting to find that in California in the US, many car insurers have, over the past 3 years, lowered the car insurance rates. Substantial savings have been made possible as the stage was set for clients to shop around.

It is however not only the efforts from insurance clients that could result in lower premiums. Other factors resulting in lower rates include fewer accidents, industry competition, a cut back on driving due to higher gas prices, a slowing economy and the effect of regulatory changes in the insurance industry.

A spokesperson from the State Department of Insurance, Darrel Ng, remarked that the auto insurance market is very competitive and insurers know that people can shop around to find lower rates.

In the US it appears that a regulatory change now plays an important role in assisting the responsible driver to find competitive and cheaper car insurance. This regulation is called Proposition 103, a landmark auto insurance reform initiative passed by voters in 1988.

Prop. 103’s best-known provision — that insurers base premiums more on motorists’ driving records as opposed to where they live — began to be rolled out two years after a long fight between consumer groups and department officials that supported that provision and insurers that fought it.

Consumers are benefitting from these changes and this can only benefit safety on the road! Consumers have been warned however not only to focus on pricing –but also to find the insurance product that meets their needs!

It is important to view the car insurance industry as an evolving industry and not as something stagnant. Best advice for clients would be to keep an eye on the industry, to read about new developments and products and to discuss this with friends and industry experts.

Communicate with your insurer and read with caution all the materials and product offerings ending up in your post box… By doing so the client will be able to identify the good from the bad and more importantly, find the best financial solutions to meet his needs and save some money as well!

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