Wondering how the economic trends will impact the insurance market next year? Will it be easier or more affordable to purchase car insurance in 2012? Here are our predictions.
Products: more companies will offer niche insurance packages
As the mainstream product market gets saturated with offers, more and more companies will focus on laser-targeted niches. There is hardly any way a small company can fight the big players when it comes to liability insurance, but they can develop products focused on a narrow range of customers. We will see more and more packages dedicated to cargo transporters, rent a car dealers and operational leasing companies.
Technology: an increasingly high number of companies will switch to online-only services
Competition on the market will get harsher and harsher. Smaller companies will either disappear, be eaten up by the big players or come up with ways of cutting costs in order to survive and offer competitive rates. A lot of brick and mortar offices will close and companies will offer all their services online.
Services: top customer satisfaction or no business at all
Well, the truth is probably going to be somewhere in between. However, more and more companies will understand that they can't live without their customers, so a lot of focus will be put on customer satisfaction and responding to claims in due time. We will probably notice fewer complains about outrageously long times taken to resolve claims. Those who show that they don't care about their clients will lose and eventually close down.
Government/DMV: more flexible pricing models
A lot of states currently impose restrictions on minimum and maximum prices for the mandatory liability insurance. 2012 should bring some flexibility. Companies will be allowed to focus their pricing models on the driver's risk rather than some bogus economical criteria. As a result, safe drivers will be rewarded and reckless ones will be penalized. The gap between the highest and the lowest price for the same package will increase consistently.
Sales: somewhat higher
As forecasts show economic growth in 2012, more work places will be created. As unemployment rate goes down, people will need cars to get to work. More cars on the market means more insurance packages being sold.
Prices: mild increase to be noticed
As predictions show that the economy is slowly but steadily getting back on track and another recession is unlikely to materialize, the vehicle sales in 2012 should somewhat grow. If the number of insurers remains constant, a higher demand will lead to a higher general price level. If not correlated with a safe driver reward program, this might lead to uncomfortable situations for both insurers and customers.
Social: campaigns aimed at lowering the number of uninsured motorists
According to a recent USA Today study, one in seven drivers in the United States have no insurance. 2012 will probably bring campaigns aimed at educating people and cultivating the sense of responsibility. We are to see an improvement in this field, but only if correlated with an economic growth and a lower unemployment rate.
- Purchasing Car Insurance in 2012
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- Where to Get a Car Insurance Quote
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- How Car Insurance Works
- Cheapest States to be Insured In
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- Reasons Why Car Insurance Premiums Increase
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- High Auto Insurance Rates in California