Posted On: June 9, 2009, 3:27 pm CDT

Posted By: Do some research!

For all you folks who think the insurance companies are right up there with Pol Pot and Hitler, let me present some facts for you.

Threre are two types of states out there in the insurance market place: those that regulate prices and those that let market competition set prices.

Florida has chosen the former course and as a result has some of the highest rates in the country. MA, MI, NY, and PA are a few other states that choose to meddle in the insurance market place. Their rates are also outrageous.

Other states choose to let insurance companies duke it out. The result is that states like TN, GA, OH and ID have low insurance prices. I live in GA and I pay well under $500 a year for $350k in cov A and $500k in CPL. Sure I don't have hurricanes to deal with, so the premium will be less, but the same policy in a price regulated state is triple the price.

Insurance companies have a vested interest in having the lowest price possible. Why? Because they need customers. Continuously raising rates means they lose customers. Much like the price of TVs and computers, over time improvements in process and technology means that it becomes cheaper to be in business. Reductions in the cost of doing business means that prices come down. Even if five insurance companies raised rates, one would decide to grow and they'd drop prices to grow. Once that happens the other companies have to compete or lose market share. Competition is a breautiful thing.

Do some research. Over the past 8 years insurance prices have steadily come down for most consumers. The reality is that some companies are jerks. The reality is that 20-30% of your premium is to pay for some other jerk committing insurance fraud. The reality is that your politicians have a vested interest in your turning to them for solutions: if you can't think for yourself, they get to think for you.

The Insurance Department in Florida is up a creek without a paddle. If a major hurricane hits it'll cost the citizens of Florida billions in assessments. Heaven forbid we let people CHOOSE what they want to pay for insurance. People get to vote with their money every day. Gas price too high at Chevron you drive to the Texaco to check the price there. It's the same thing in insurance - find someone with the coverage and price you want. But don't tell me what I have to pay.