Most consumers know how the “game” works. We pay a certain amount for auto insurance, and we also know that the cost of this insurance rises if we are in an accident or we get any speeding tickets. We also understand that ultimately, a rash of accidents or claims around the country leads to additional costs that are ultimately, even if indirectly, passed to the rest of us. That’s why we should all pay attention to an article published recently in the Chicago Tribune, which tells of how Allstate’s profits are down due to a spike in claims, and that’s not good news for the everyday consumer.
“Fewer accidents helped triple the industry’s profit margins from 2003 to 2006, allowing companies such as Allstate, Progressive Corp. and Geico Corp. to compete on price, according to Bob Hartwig, president of the Insurance Information Institute.
“This isn’t going to be a great business to be in over the next year or so,” said Cliff Gallant, an analyst at Keefe, Bruyette & Woods Inc. in
This is something to watch, to be sure. In the meantime, if you’ve been the victim of one of these accidents, contact the personal injury lawyers at Williams Kherkher immediately to schedule a free initial consultation. You can do so either by clicking this link or by calling us toll-free at (866) 950-9000.
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