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Ronnie Said:

How did mandatory car insurance effect prices upon gov requirements to have insurance to drive?

We Answered:

It helped to remove the burden of adverse selection from the insurance companies.

Adverse selection is an insurance term that describes the increased likelihood of a person to purchase insurance based upon that person's expectation of filing a claim.

In other words, if I believe I am very likely to have a wreck, I am more likely to purchase insurance. But if I believed my chances of having a wreck are very low, I would be less likely to purchase insurance.

In the absence of mandatory auto insurance laws, insurance providers would need to "price in" adverse selection, which makes insurance more expensive for those who purchase it.

With mandatory auto insurance (at least in theory) everyone buys insurance, so the insurance providers have a large pool of average drivers upon which to base their rates. This has the effect of decreasing the cost to an individual.

An additional factor is the degree of compliance to mandatory auto insurance, but the principal remains the same.

Troy Said:

Car insurance prices for 19 year old workers?

We Answered:

You will be hard pushed to find any cheap quotes due to your age. This is because of the amount of accidents caused by inexperienced drivers.

Try inoutting your details on confused.com website. They will search hundreds of insurance firms, you can then look and see which suits you best.

Rodney Said:

how much does 1 point on your drivers license make in car insurance prices?

We Answered:

I wouldn't worry about it. Don't call your insurance company and ask though. Most insurance companies only pull your record once every 1-2 years so they won't find out for a little while. It's not like it goes straight to your insurance company when you get a ticket.

Cynthia Said:

Do insurance companies look at your car?

We Answered:

yes, the premiums may be higher for the modifications because if they are damaged or stolen, they are covered under the policy. if you don't pay for the extra endorsements, you won't have any coverage for the modifications, but only regular replacement parts... do it at your own risk.

Eugene Said:

Why the hell car insurance prices are SO MUCH EXPENSIVE in here? (USA)?

We Answered:

You picked an extreme state to move to. NJ insurance rates are super high, compared to anywhere else I've lived. 3 times more than IL, and WI. Shop around. If you qualify for New Jersey Manufacturers Insurance, that will be your best bet. They are by far the cheapest rates in the state. I have a friend that went from $1700 a year to under $1000. So if you can get that, I recommend it. Good luck.

Lori Said:

Pennsylvania car insurance prices?

We Answered:

Depends on which part of PA you move to. You may want to try a website that compares multiple companies at once to get you the best price. I am paying less than ½ after I did.

Go to: http://www.insureme.com/landing.aspx?Ref…

Take care,
Casey