| Yes.
After many years of rate increases, the cost of car insurance fell slightly,
by 0.3%, in 1998, and another reduction is expected for 1999. The total reduction
was estimated to be 2 or 3% after dividends on policies issued by mutual companies
are considered -- like market leader State Farm. California, with 10% of the drivers,
had a 5.7% reduction in cost last year. This decline came after reductions in
each of the three previous years. High premium states like New York, Florida and
Massachusetts are also seeing declines. Even New Jersey -- the state with the
highest insurance costs -- is expected to get a 15% cut in 1999
because of a state mandate. Factors
that have contributed to the fall include: 1.
The aging of the population 2.
Safer cars (automatic seat belts and air bags) 3.
Falling crime rates 4.
Tougher drunk driving laws 5.
Increased competition Tougher
competition is coming partly from companies that sell direct via telephone,
direct-mail, and the Internet. They are contributing to the trend and gaining
market share by offering lower costs. Companies that sell through agents
still have 90% of the market but the direct sellers are growing faster. |
known
in the UK as motor insurance, is probably the most common form of insurance and
may cover both legal liability claims against the driver and loss of or damage
to the insured's vehicle itself.
