Posted on 05/06/2008 6:02:14 PM PDT by Michael.SF.
Remarkable news from Massachusetts, of all places. Car insurance premiums are going down. For three decades a Bay State regulator has set the price of car insurance, leading to an annual tussle between insurers and consumer groups over the size of the increase. This led to some of the highest insurance rates in the country.
Because there was no price competition, some of the biggest insurers wouldn't do business in the state. During this exercise in central planning, the number of insurers dropped to 18 last year, from more than 70 three decades ago. But as of April 1, the state government decided to try a little experiment in the free market. We do mean little – proposed premiums must still be filed with the regulator, who can approve them or not. And many factors used to set rates in other states – such as credit history – are barred.
Even so, this modest experiment in price competition is already working to reduce costs for consumers. Progressive, the third-largest insurer in the country, entered the market May 1 with rates that are on average 18% below the old price-controlled rates. Overall, premiums in the state are due to fall nearly 8% this year as insurers adjust to a world in which they need to compete to attract customers instead of bargaining with their regulator for price hikes. Imagine: When you remove price controls, supply increases and prices fall.
(Excerpt) Read more at online.wsj.com ...
Too easy:
Bad drivers, the young and people living in congested areas will pay more.
This was due to Romney. The original insurance crisis was instituted by Dukakis (no surprise). Our rates are still very high.
It has been so ironic that clever Geico radio and TV ads have permeated, and promoted an unattainable service on the Massachusetts airwaves for years.
Now it may eventually be possible for a Masshole to buy car insurance from a lizard.
But only if they beg permission from their false god, the state. Massholes HATE freedom - look at who they elect to the Duma. But never fear, other Deutsche Democratische Republik controls are still in effect. They will never have the freedom to just go aout an buy a gun for example (and they want it that way)
Be still my heart! I thought, for a minute that John Kerry was releasing his military records. ;-)
Too bad Mitt went to non free market for Hillary Care. Thanks Mitt!
That’s perfect for the proverbial little old lady who only drives her car to the grocery store once a week, then to Church on Sundays!
Liberal Logic: it’s not faaaaaaair to make lousy drivers pay their share of the damage they cause.
That it is. Thank you.
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