Why car insurance is mandatory in some states

The public are not so much to be blamed as those leaders who have catered to public acclaim and aroused unjustifiable passions through misrepresentations. When Commissioner established the first compulsory rates he arbitrarily slashed the regular, “living wage” premiums of the liability companies doing business in this state something like 33 per cent. The public were at once given the false impression that the private insurance companies must have been over-charging them that much. Through two years they have become accustomed to the lower rate. Compare car insurance rates online!

When it came out, as it was inevitable it would, that the companies, as a result of the arbitrarily fixed lower rates, had lost millions of dollars, and higher rates were shown to be necessary, the public were easily influenced to find fault and become advocates of any form of alleged relief which might be offered. Two commissioners have had a hand in establishing a new set of rates which were absolutely necessary if the insurance companies were to continue in business and furnish sound protection.

The second commissioner has made a slight reduction from the figures of the first, but he has done it not on the basis of any saving through better experience but by arbitrarily taking out of the pockets of thousands of citizens of the state who earn their living by insurance practically a third of their income from this class of business. This is another mistake, we believe, and creates another false impression to the detriment of the insurance interests. In the meantime as regards the authors of fake claims, the attorneys who were charged with having robbed the insurance companies, the doctors who are alleged to have been in collusion, little or nothing is heard of any action along this line to help in reducing the legitimate and very real cause for high cost of insurance.



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