Does the Federal government determine insurance rates?

Thursday, May 28th, 2009

Does the Federal government determine insurance rates?

Myth: The Federal government determines insurance rates

The government does not set insurance rates, which makes making comparisons between companies even more important.

Myth:

The federal government sets auto insurance rates by coverage levels. Therefore, there is no reason to compare different insurance companies looking for the lowest price.

Fact:

The federal government has no bearing or influence on the price of car insurance. State government may provide general guidelines to insurers, but the bottom line is the insurance companies determine the rates.

It can be very beneficial to get quotes from several different auto insurance companies and compare rates and coverage limits.




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