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Additional Details
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betty_meliss |
Has the economy effected the auto insurance rates for individual policies?
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The Christopher
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I would assume the economy will affect insurance rates since the insurance industry invests money in the stock market and the stock market has taken a 50 % dip, and the insurance companies upon losing this money in the stock market, will have to increase rates to compensate. This happened in the early nineties with the tech stock decline.
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Insuranceman
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Insurance companies are trying to control their bottom line a little better due to the downturn of the stock market and the loss of investment income.
They are now "tightening their belts" and actually UNDERWRITING new applications in an attempt to make money based on UNDERWRITING profits - and not just CASH FLOW investments.
I don't see it affecting actual rates for the immediate future, it just might affect what a company WILL insure and what they WON'T.
Good luck and I hope this helps!
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