Has the discount effect the auto insurance rates for individual policies?
Answers: Insurance companies are trying to control their bottom line a little better due to the downturn of the stock souk and the loss of investment income.
They are now "tightening their belts" and actually UNDERWRITING brand new applications in an attempt to make money base on UNDERWRITING profits - and not just CASH FLOW investments.
I don't see it affecting actual rates for the immediate adjectives, it just might affect what a company WILL insure and what they WON'T.
Good luck and I hope this helps! Source(s): Independent insurance agent for 28+ years
I would assume the cutback will affect insurance rates since the insurance industry invests money in the stock market and the stock flea market has taken a 50 % dip, and the insurance companies upon losing this money in the stock bazaar, will have to increase rates to compensate. This happened within the early nineties with the tech stock decline.
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