Montana Insurance

After falling for two years, car insurance premiums across the country stand again for the resumption of regular quarter-century, an increase.

Several major insurers - including Progressive, Geico, State Farm and Allstate - have begun to impose higher prices, and analysts say that by the end of the year, most other companies will probably follow. Insurers said they were forced to act because the increase in costs for repairs and treatment of injuries.

”The trend is clearly up,’’said Thomas V. Cholnoky, automatic, followed by insurance for Goldman, Sachs

While increasing the size is very different - and some companies are still cutting prices - an increase of at least 4 to 5 percent are not uncommon. And some companies have pushed up prices in some countries over 10 per cent. Analysts and industry leaders indicated that they expect more of the same next year.

In New York and Connecticut, the first signs of change appear. But the situation is less clear in New Jersey, where costs of auto insurance - an average of $ 1150 per year, a car, compared with $ 700 nationally - was the highest in the country. Last year, the legislature has the unusual step of appointing a reduction of 15 percent in prices.

While spending the insurer may growing in New Jersey, as elsewhere, “said industry leaders, it was difficult to predict whether that cost would be offset by legislative changes aimed at reducing fraud and litigation and if not, to what extent political leaders allow price increases.

Consumer advocates say that the increases are not justified. J. Robert Hunter, insurance director of the Consumer Federation of America, said that even if some were rising costs, spending for insurance, all were still down.

American spent an estimated $ 126 billion last year in car insurance, which is mandatory in all countries. It was almost four times what they pay for their houses. There are many other claims on cars and passengers at home, but the rights and responsibilities of hundreds of thousands of dollars are much more common in car crashes, incidents apartments.

Besides price increases, insurers are reducing or eliminating discounts and screening applicants more carefully, so that the highest risk drivers and simply refuse to sell to some. Several companies were also dropped on piracy administrative, with layoffs in some cases.

Consumer advocates say that, to ensure that supply always the best, because prices increase, people should review their accounts and prices of several companies. But rather than on the basis of coverage decisions on price alone, defenders advice people to familiarize themselves with friends and insurance regulatory authorities to learn how to treat customers of different companies.

The price of auto insurance has risen steadily since 1973 and in the years 1997 to an increase of more than two times faster than inflation, according to the Bureau of Labor Statistics.

But in 1998 they were 2.8 per cent last year to 3.2 percent, said Robert P. Hartwig, chief economist at the Insurance Information Institute, an industry group in New York. Insurers said they had their prices cut costs for claims falling.

Although fewer and less serious accidents occurred, in part because of security features such as airbags and antilock brakes. It was also during drunken driving and car theft, and show that aging baby boomers have more and more drivers safer. A says Hartwig body medical costs and charges were levelled.

While many of these trends continue, “said Hartwig their financial benefits are eclipsed by a resumption of expenditures for repairs and treatment of injuries. He said that repair costs are made in part because many companies are more generic with spare parts after the Land Farm was sued by consumers last fall and the payment of $ 1, 2 billion for manufacturers of origin.

Randy Stoddard, a force of Safeco, nation the 15 biggest insurers said, while the number of accidents is decreasing, the seriousness”.”

In addition, he said:”The new cars are smarter and more costly to repair. And people are more expensive to repair, we ask that medical care inflation.”

Mr. Hunter said he had no shadow of a doubt that the insurer the cost per accident. But”,”, he said que”le number of accidents is falling faster than the increase in costs.”

Safeco, a loss of almost $ 40 million in its car insurance business during the first quarter in 20 states so far this year by almost 1 percent in Colorado to 8.2 percent in Michigan. Last year, prices have in 18 countries.

The two biggest companies - State Farm and Allstate - are still cut in several countries, as they are collectibles, but they are also the first signs of a postponement. Last year, State Farm cut in 48 countries and an increase in prices in a single, Massachusetts. So far this year, State Farm, cut there in 15 countries and an increase of 10, including an increase of 5.6 percent in Montana.

State Farm seeks a decline of nearly 5 percent in California, the state with most drivers. But Mr. Cholnoky said that an analysis of rates in California showed that State Farm prices among the highest in the state, 31 percent higher than Allstate and 55 percent higher than gradually.

So far this year, Allstate, the price of two states - Louisiana and South Carolina last year, there was no increase. While getrimmten sentences in 10 countries last year, only 4 countries have already reduced this year.

In New York, where regulatory authorities have taken measures to ease costs for insurers, as they New Jersey, is one of the largest companies, Progressive, the price rose 4.3 percent. Nineteen small businesses have increased in the village, ranging from less than 1 percent to 18.6 percent, six other small businesses, reduced prices. In Connecticut, one of the biggest insurers Nationwide Mutual, 4.9% higher prices and six other insurers have grown smaller. Five small insurers, reduced prices. Last year, price reductions in the number increases by nearly 3 to 1

A small company in New Jersey, GSA, raised premiums 15 percent, New Jersey and several insurers require regulatory authorities for even stronger. But John Tiene, executive director of the Insurance Council of New Jersey, said this increase has been requested two years ago and do not meet current expenditures. The increase of GSA, however, had the effect of nullifying the 15 percent legislative Rollback.

Geico, Progressive, Safeco and several other major insurers in New Jersey and said it is difficult to do so profitably.