Chicago Illinois Sr22 Car Rate
Chicago Auto Insurance Rates: Lower Premiums Projected in Illinois
by Ed Sneineh
In spite of the credit crunch that is taxing most small businesses, the insurance market is not exhibiting any symbol of powerful flaw like many other businesses. The insurance sector is a recession proof business, which signifies that regardless of what's happening in the market, people still have to acquire and spend money on insurance. Actually some people debate that, since insurance is a security need, people tend to get more caring about their security issues during these painful times, accordingly demand on insurance policies increases.
While we have forces that are pushing the prices up such as the credit crisis, other things are driving the prices down - such as lower interest rates, deflationary pressure, and a long time battered economy. The total direct result tends to be a reduced demand on automobile insurance. As the demand falls, more carriers realize themselves driven to be little forceful with their insurance premium rates.
Based on the reports of the National Association Of Insurance Commissioner, http://www.naic.org/ The Average Premiums and Expenditures in 2007 was $794 per year per insured vehicle, as opposed to $830 in 2003, nationwide. More recent stories, per the Wall Street Journal [online.wsj.com/article/SB122947388659212351.html] indicate that insurance 'premiums nationally rose 3.8% in November  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, in comparison with $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 automobile insurance industry is one of exceptional industries in the financial service industry in the USA. Firstly the market is huge, and that makes it inviting and easy for the automobile insurance companies to get in it. Actually, handful of auto insurance providers have started from scratch in the past few months to offer low automobile insurance premiums in Chicago. Secondly, there is a number of insurance companies in Chicago that are aggressively challenging each others based on premium. To conclude, the Chicago car insurance rates are among the most reasonable premiums in the nation because of the fact that the State of Illinois guidelines are not as inflexible as other states such as New York, for instance.
There are over 2,500 listed insurance agencies with address in the city of Chicago. Those agencies are either captive agencies -agent in the agency belongs only to one company like State Farm and American Family,- or independent agencies like Insure One or Insurance Navy. The majority of captive agencies are credit driven, which means that the price given is predominantly decided by the credit of the customer. Independent agency systems have more freedom in their insurers legal representation. Dissimilar to the captive system, the independent agency system enables agents to quote clients with many companies all at once, some of these companies may use credit rating and others may not, hence providing the customers to have several quote variety.
A few customers are under the impression that the independent agency setup does not make available to customers top rated insurers. As a matter of fact the contrary is correct. Most of the highly recognized companies, such as AAA, Travelers, Safeco, and many others are only using the independent agency system, and not the captive system. Independent agents, in contrast to captive agents, can offer more choices, more prices, and more features.
Ed Sneineh, insurance professional for over 20 years, former college educator of insurance, and founder of Insurance Navy, a leader in providing more competitive automobile quotes.
posted on Wednesday, April 5, 2017