Where are Your Pennsylvania Auto Insurance Rates Headed?

Getting substantial savings on car insurance has become commonplace here in Pennsylvania. Over the past ten years many leading companies have lowered rates. Their strategy was to stay competitive in the industry even though their losses many times exceeded their premium revenue. What's this mean to you? It means that if your company is practicing this strategy, the gravy train is nearing the end of the line.

If you've signed on with one of the newer companies to enter the Pennsylvania auto insurance market, you're probably the greatest at risk. Many companies underprice their product when entering a new state. The objective is to keep pricing very low until they accumulate some market share. Then rates can be adjusted to a profitable level. Many companies will deny that this is true, but past history has proven it over and over. A quick look at the companies who have entered the state of Pennsylvania's car insurance market in the last ten years and their rate history would prove my point.

The pennsylvania auto insurance rate structure has undergone some huge changes in the last ten years. With credit scoring/insurance scoring models and profiling, the companies have hundreds of different rating platforms. In laymens terms...they can charge two hundred different prices for a 45 year old male who drives a dodge minivan to work 15 miles each day. Based on credit history, etc the companies feel like they can almost develop a rate for each consumer. GPS units installed in cars to track driving habits are next on the scene. With "big brother" watching over our shoulder we're sure to behave a little differently. It's disappointing as an agent to see the many hard working folks who've struggled with credit/bankruptcy/divorce and who now have a hard time getting a fair price on Pa car insurance.

If you're concerned about your pa auto insurance rate going through the roof, you need to do a little homework. Google your company's financial for the last few years. If they have not shown an underwriting profit in the last few years, how will they continue to pay their electric bill ? With their investment income showing a bleak future you will become the next best source of increased revenue. Search around, there are many Pa insurance companies who are still profitable and have not plans for increasing rates any time soon.

Williams Agency
Source for Affordable Pa Auto Insurance