Lower Auto Insurance Rate Car Insurance Quote Online

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Lower Auto Insurance Rate Car Insurance Quote Online. The United States announced the terms of the second generation of auto insurance rates, compared to the beginning of the terms, lower auto insurance rate.

It is reported that California, Los Angeles and other property insurance companies have reportedly prepared a second batch of CIRC Auto Insurance, rates are down.

Insurance companies in less than four months have launched a new auto insurance rate, auto insurance industry that the price war has already started.

Terms of the second generation of auto insurance reform in the vehicle pre-market summary based on the experience, depth of market segments, optimize the rate structure is made.

Terms of launching a new generation of auto insurance rates is to better serve our customers, compete in the market.

Safe investment vehicles in different provinces and cities insurance, the price according to local traffic conditions and the risk level of different options to improve the customer flexibility.

Meanwhile, the discount rate lower than before the expansion of premium up to 50% when the most favorable discounts.

According to report lower prices to make their products more competitive are the terms of property insurance companies to adjust rates for the main purpose. For example, in the Beijing market, the California insurance companies to seize the lowest since prices more market share.

As a veteran property insurance company, PICC in the determination of rates that has a huge database and scale advantages.

It is reported that auto insurance reform, the People’s Insurance underwriting vehicles in Beijing increased by almost Liu Cheng-year, premium income rose by 30%. PICC market share increase, the natural decline in the performance of other insurance companies, so, car insurance quote online.

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Some industry insiders believe that this round of price cuts is likely to evolve into a vicious price competition. Auto insurance has repeatedly cut prices for four reasons:

First, the maturity of China’s entire insurance market is low. Statistics, the current 100 yuan in savings of Chinese residents, an average of only a 3 yuan to buy insurance, while the world average of 7 to 8.

And developed insurance market close to saturation, the Chinese insurance market is emerging markets, there is ample room for development.

After the price cut, short-term is a loss, but as long as the market-share in the long run, as long as there are enough new policy holders, you can refinance old debt.

Second, the theoretical basis in accordance with the insurance industry, “Law of Large Numbers”, the more insurance protection, the greater the likelihood of risk diversification. From this point, insurance companies have cut prices embrace the policy of internal drive.

Third, consumers are not mature. Commercial insurance in China started late, not yet ripe for the insurance consumers purchase the follow-up services often do not look.

Vehicle insurance in particular, just one time is very short, after-sales service as important as life insurance companies like the consumer is only concerned with price.

But in fact, look at the price of insurance products is not complete, consumers should also look at areas of responsibility, except such liability and deductibles. If more stringent exclusion, deductible slightly larger, the price can be spelled out in many.

Fourth, with the company’s structure and performance indicators are related. At present the larger insurance companies in China, even the stock is basically a state-owned holding companies.

Consumers that insurance companies are also countries reveal all the details even bankruptcy, insurance companies may think that there are financial reveal all the details.

A few years ago the scale of regulatory authorities regard the premium as assessment criteria, such as insurance premium depends on the size of new branches opened. While it is finally making it into capital, but many internal assessment of performance standards or insurance premium.

The one hand, car insurance prices continued to fall on the other hand is up comparisons auto insurance commission, car insurance price war may be intensified.

An insurance transaction, car insurance company insurance agent must give the commission, the commission is the property insurance company high and low price competition in a different way.

Commission is another sensitive topic, auto insurance reform before the once high rebate serious. Ministry of Finance has expressly provides that “the insurance agent fees shall not exceed an average of 8%.”

However, the car insurance market from the current situation, the commission’s upward trend continues. Auto insurance agents auto dealers continue to demand higher rebates, dealer difficult to parry, only to improve agency fees.

Role of insurance companies who ultimately, the insurance company to maintain market share, can only enhance the rate of commission. It is reported that Shanghai has most insurance companies charge from 8% to 15%.

Insurance Reform in California in 2009, when the pilot, the insurance companies compete to keep the prices down, and some companies even hit a two fold, the situation turned chaotic, eventually reached an agreement to trade associations in the form of trouble.

The beginning of auto insurance reform, many insurance companies have made it clear that no price war, in some places led by the trade association self-insurance companies signed the agreement, and some local property insurance companies have signed a liability form and Baojian Ban.

However, driven by various factors, auto insurance price war is still not able to avoid. (*)