Should Car Insurance Be Based On Credit Score?
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)
The better this resell value is, the more cash you will have to fund your next vehicle. • Lower credit score Unlike with leasing, you don’t need top-notch credit score to qualify for financing since the vehicle itself acts as collateral. • The vehicle in great
Everyone in those cars get titled prostitutes or thieves. This is something that can affect
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
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.
Insurance companies will now be accountable to their customers for how they are spending premium dollars, and how much they are raising rates.
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 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.
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
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
After the law that everybody had to have insurance was
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
Insurance companies are making a huge amount of profit. The profit that these
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