Insurance Broker Flower Mound TX

Insurance Broker Flower Mound TX

Small accidents can be quite expensive, depending on the Insurance Broker Flower Mound TX and model of the car involved. The insurance institute for highway safety recently published a survey that compared the repair costs of low-speed (5 MPH) crashes of small four-door 1990 cars. The costs varied widely: a Honda Civic DX, when backed into a pole, incurred $225 worth of damage: a Daihatsu Charade SE backed into the same pole would cost $1,372 to repair. Clearly, higher-quality bumpers on all cars could bring down the cost of repairs—costs that are now paid with insurance benefits. With better bumper standards in place, “fender benders” would be eliminated, resulting—in theory—in an Insurance Broker Flower Mound TX.

Increase competition to lower the price of parts. One major expense item in repairing any damaged car is the price of parts. A major reason for this is the monopolistic control original equipment manufacturers (OEMs) have over the parts market. Competition in this lucrative market must be encouraged. Any Insurance Broker Flower Mound TX that prevents use of competitive replacement parts should be repealed.

Increase the prevention of theft and fraud. Existing steering-wheel lock and other such anti-theft requirements should be reevaluated and upgraded. In addition, insurers should push auto companies to design more theft-resistant locks. Laws that punish insurance fraud by fake accident specialists should be toughened and enforcement increased so that this drain on Insurance Broker Flower Mound TX funds can be reduced.

The above proposals, if adopted, would go a long way toward getting the runaway costs of auto insurance under control. In addition, other approaches are possible, such as establishing state-run nonprofit auto insurance companies similar to the workers compensation funds that have been created in many states.

The way to bring reason and fairness to the pricing and administration of Insurance Broker Flower Mound TX will be hard-fought. No one expects the entrenched and powerful forces of the insurance establishment to surrender their immense power easily. In fact, it will take years of energetic consumer activism to stop the pricing abuses of the auto insurance industry.

Let’s take a look at one of the early conflicts in the ways to reduce auto insurance premiums: California’s Proposition 103.