I agree with you absolutely. You can go to a state like Alabama and find all kinds of insiders/lobbyists who are milking the state system, to ensure x-policies cost this much, and that the state commission avoids asking loaded questions.
Imagine having a state by state milk system, and that a gallon of milk in Tennessee cost $1.25, and in Kentucky, it’d be $0.94. You’d eventually wise up and buy the product in Kentucky.
“I agree with you absolutely. You can go to a state like Alabama and find all kinds of insiders/lobbyists who are milking the state system, to ensure x-policies cost this much, and that the state commission avoids asking loaded questions.
Imagine having a state by state milk system, and that a gallon of milk in Tennessee cost $1.25, and in Kentucky, it’d be $0.94. You’d eventually wise up and buy the product in Kentucky.”
This is exactly the issue. And the reason it didn’t work before was because they didn’t do it right. They are protecting “demographic territories” to control pricing in certain areas and eliminate any competition against those pricing ranges for certain areas. Even national companies are involved in this scam. They are all maintaining a pricing minimum for particular states or areas. It’s “price fixing”.
Just look at auto insurance... The first question is “what’s your zip code?” because price quotes no matter who you call are going to be within a few dollars of each other for that “territory”. But it might be half as much if the same coverage was offered in another state in similar demographics. Health insurance is the same way.
It’s a scam just like business dealer and franchise “territories” that keep the pricing high, Just like the Snapon tool dealers. And if someone from another state and territory was allowed to offer lower rates in that same area they would all have to come down to compete for that same territory.