US Auto Insurance

By: EconomyWatch   Date: 30 June 2010

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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About US auto insurance industry
There are two major types of companies in US auto insurance industry - mutuals and private insurers. Auto insurance industry in US is controlled, to a significant extent, by private insurance companies. However, there are other smaller companies operating in US automobile insurance industry as well.

Private auto insurance companies amount for 50 percent of US auto insurance market. In last few years these organizations have been taking up larger shares of gains made in US auto insurance market. Profits, accrued by them, have been more than US auto insurance companies, functioning as mutual companies.

GEICO and PGR, two major private automobile insurance companies, have been top players of automobile insurance industry of US. Their performance is reflective of significant direct channels at their disposal. In recent times there has been a slowdown in market share shifts for private auto insurance companies of US.

It is a reflection of softening premium cycles and cost cutting procedures being implemented throughout US auto insurance industry. Since its inception, US auto insurance industry has been able to achieve a fair degree of maturity. In a span of a decade and a half, rate of growth of US auto insurance industry has been 4.5 percent.

Problems of US auto industry

In recent times a number of problems have been plaguing US auto insurance industry. One major issue has been extraordinarily high expenses, incurred by US auto insurance companies. These expenses have resulted from over treating legitimate injuries as well as treating soft tissue injuries, which are non-existent. These fraudulent activities have continued to hamper US auto insurance industry.

People in US have claimed insurance for sprains and stains. This has led to increase in payments made by other US auto insurance policyholders as they have had to cover for those frauds. US auto insurance authorities have put in place low impact programs that help deal with such fraudulent practices. These programs have certain recognition criteria and biomechanical information and regulations that help them deal with such claims.

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US auto insurance companies
GMAC Auto Insurance has built up a good reputation for quality of its services. It also insures recreational vehicles. Insurance.com is an online US auto insurance services provider. It provides quotes, at reasonable rates, from other major US auto insurance companies such as Liberty Mutual and Travelers.

You can also look at an extended auto warranty from extendedwarrantyservices.com. Choose an extended auto warranty plan up to 250,000 miles to protect your vehicle longer.

For extended truck warranty, choose an extended truck warranty with roadside assistance, towing, rental car reimbursement benefits and more.

Extended Car Warranty Enjoy free roadside benefits with an extended car warranty plan from 5 Star Warranty.


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