Cheap Auto Insurance in Chicago, Background
In spite of the credit mess that is straining most merchants, the insurance market is not indicating any symptom of intense weakness like many other businesses. The insurance field is a recession immune business, which implies that irrespective of what's occurring in the market, people still have to buy and spend money on insurance policies. In reality some people contend that, since insurance coverage is a security need, people tend to get more alarmed about their security issues during these painful times, accordingly demand on insurance policies will rise as well.
So while we have elements that are pushing the prices further up such as the credit crisis, other causes are driving the prices below - such as lower rates of interest, deflation, and a long time suffering economy. The general conclusion looks to be a lesser demand on auto insurance. As the demand goes, more insurance carriers realize themselves driven to be little forceful with their insurance premium rates.
Based on the publications of the National Association Of Insurance Commissioner, naic.org/ The Average Premiums and Expenditures in 2007 was $794 per annum per insured automobile, as opposed to $830 in 2003, nationwide. More recent studies, per the Wall Street Journal [online.wsj.com/article/SB122947388659212351.html] show that insurance 'premiums nationally rose 3.8% in November [2010] from a year ago, according to the Labor Department's consumer price index.'
According to the National Association Of Insurance Commissioner, Illinois Average Premiums and Expenditures in 2007 was set at $723, compared to $1,140 in DC and $1,104 in the State of New Jersey and $1,047 in the State of New York, for the same year of 2007.
The Chicago auto insurance quotes sector is one of unique industries in the financial service industry in the United States. To begin with the market is too large, which often makes it appealing and easy for the auto insurance companies to enter it. Actually, handful of automobile insurance carriers have started from scratch in the past months to provide Chicago with low automobile insurance premiums in Chicago. Second, there is a number of insurance companies in Chicago that are aggressively challenging each others based on price. In the end, the Chicago car insurance rates are among the most favorable premiums in the US due to the fact that the State of Illinois rules are not as stringent as other states like New York, for instance.
There are more than 2,500 reported insurance agencies with address in the city of Chicago. These agencies are either captive agencies -agent from the agency belongs only to one company like Allstate Insurance and State Farm,- or independent agencies like Accurate Insurance or Insurance Navy. The majority of captive agencies are credit focused, which means that the rate quoted is mostly established by the credit of the applicant. Independent agency systems have more freedom in their insurers representation. Different than the captive system, the independent agency system allows for agents to price clients with many companies at the same time, some of these companies may use credit quoting and others may not, thereby permitting the customers to have many quote options.
Few clients are believing that the independent agency method does not present preferred insurance carriers. Of course the contrary is correct. Most of the highly prestigious insurance companies, such as AAA, Travelers, Safeco, and many others are only using the independent agency system, and not the captive system. Independent agents, unlike captive agents, have more choices, more prices, and more solutions.
So while we have elements that are pushing the prices further up such as the credit crisis, other causes are driving the prices below - such as lower rates of interest, deflation, and a long time suffering economy. The general conclusion looks to be a lesser demand on auto insurance. As the demand goes, more insurance carriers realize themselves driven to be little forceful with their insurance premium rates.
Based on the publications of the National Association Of Insurance Commissioner, naic.org/ The Average Premiums and Expenditures in 2007 was $794 per annum per insured automobile, as opposed to $830 in 2003, nationwide. More recent studies, per the Wall Street Journal [online.wsj.com/article/SB122947388659212351.html] show that insurance 'premiums nationally rose 3.8% in November [2010] from a year ago, according to the Labor Department's consumer price index.'
According to the National Association Of Insurance Commissioner, Illinois Average Premiums and Expenditures in 2007 was set at $723, compared to $1,140 in DC and $1,104 in the State of New Jersey and $1,047 in the State of New York, for the same year of 2007.
The Chicago auto insurance quotes sector is one of unique industries in the financial service industry in the United States. To begin with the market is too large, which often makes it appealing and easy for the auto insurance companies to enter it. Actually, handful of automobile insurance carriers have started from scratch in the past months to provide Chicago with low automobile insurance premiums in Chicago. Second, there is a number of insurance companies in Chicago that are aggressively challenging each others based on price. In the end, the Chicago car insurance rates are among the most favorable premiums in the US due to the fact that the State of Illinois rules are not as stringent as other states like New York, for instance.
There are more than 2,500 reported insurance agencies with address in the city of Chicago. These agencies are either captive agencies -agent from the agency belongs only to one company like Allstate Insurance and State Farm,- or independent agencies like Accurate Insurance or Insurance Navy. The majority of captive agencies are credit focused, which means that the rate quoted is mostly established by the credit of the applicant. Independent agency systems have more freedom in their insurers representation. Different than the captive system, the independent agency system allows for agents to price clients with many companies at the same time, some of these companies may use credit quoting and others may not, thereby permitting the customers to have many quote options.
Few clients are believing that the independent agency method does not present preferred insurance carriers. Of course the contrary is correct. Most of the highly prestigious insurance companies, such as AAA, Travelers, Safeco, and many others are only using the independent agency system, and not the captive system. Independent agents, unlike captive agents, have more choices, more prices, and more solutions.
