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Competition ‘Across State Lines’ Won’t Make Insurance Any Cheaper.

We hear this over and over.

“Competition will drive down costs.”

“Competition across state lines will drive down costs.”

In most cases that is true. But Insurance is not most cases. How Insurance Companies make their money seems to be a complete mystery to most Americans. Probably because it is not like anything that they are familiar with.

Let’s take a company that makes a product. If they only see the product in one state and there is no outside competition, they can set the price to whatever the market is willing to pay. So the price will be higher because, well, they can get by with it. And if we bring in several competitors, most likely the price will come down.

And the company makes money by manufacturing an item and selling it for more than their costs to make a profit.

We all understand this business model.

But that is not how Insurance works.

Fifteen years ago I was laid off from my IT job. The market for IT skills was at an all time low. So I decided to open an Insurance Agency. After spending my entire career working on computers, I had a lot to learn. Insurance is not like anything I ever witnessed before.

Are you ready for a few shocking revelations about the way Insurance Companies work? Read on.

Insurance Companies Pay Out More in Claims Than They Charge in Premiums!

Read that sentence again. And again. It will blow your mind. And here you thought that the big bad Insurance Company made money by price gouging. That they charged their customers enough to cover their costs and make billions in profit by bleeding their insured.

And that is totally false.

In the first 9 months of last year – 2016 – Property and Casualty Insurance Companies showed a $1.7 billion underwriting loss which means that they took in $1.7 billion less in premiums than they paid out.

So they lost money, right?

No! They made $31.8 billion.

How can that be? Simple. They make their money by investing your premium in short term things like bonds. And since we are talking about massive amounts of money coming in that will not have to be paid out for a while, it adds up.

So Insurance Companies actually subsidize your insurance.

And they do that without a government mandate and without using taxpayer money. And they still make a profit. And pay taxes and pay employees and provide them with health insurance and other benefits. And they invest massive amounts in the economy.

So for my liberal friends that long for single payer government insurance, do you think that there is any chance that the government would charge you less then it costs them to provide you with insurance? No. The government will have to charge you for all of the overhead and 100% of the claim payouts just to break even.

So Insurance Companies don’t make a profit by overcharging their customers. They make money using the premiums collected for a short time. This is called “float”. Warren Buffett became rich using this method. For more on Buffett’s thinking on this, read this article. But here is an excerpt:

Insurers receive premiums upfront and pay claims later. … This collect-now, pay-later model leaves us holding large sums — money we call “float” — that will eventually go to others. Meanwhile, we get to invest this float for Berkshire’s benefit. …

So are you beginning to see that the Insurance Companies aren’t really the bad guys here? And that their business model isn’t like any other?

So exactly how will competition lower prices? If the Insurance Companies are already charging you less than “cost” for covering you, should they increase their losses? Is that free market? Hardly. They have share holders, many people have Insurance Companies in their 401K and other retirement vehicles. And if the Insurance Companies were to agree to take a larger underwriting loss by charging you less, that means that their shareholders are not treated fairly and it also means that the money they invest in the markets will be reduced. Which means that other companies will suffer from the loss of investment money and the markets will go down as a result. The very markets that the Insurance Companies invest in and reap profits from. So that would cause a death spiral.

Here’s a question. Now that you know a bit about how Insurance Companies make money – by charging you (often) less than they pay in claims and investing your money as it passes through their hands, and with the added benefit of pouring a steady flow of investment dollars into the markets, making all of us money, why did Obamacare impose a limit on how much money Insurance Companies could invest? As a whole, the P&C companies lost $1.7 billion last year. Another way to put that is that they should have charged us $1.7 billion more to break even. Obamacare was supposed to bring down the cost of healthcare. So why limit what an Insurance Company may invest? This takes billions out of the markets and lowers the profits made by Insurance Companies.

Obviously, the target of Obamacare was not lower healthcare costs, but single payers government insurance. If the Insurance Companies are out of the way, we wouldn’t have any other options. Which is why the entire Obamacare bill ignored the actual costs and went after the Insurance Companies.

And it is the reason that Paul Ryan and the Republican’s RINOCare bill will also fail to bring down costs. The Insurance Companies are not the problem.  They are not gouging people. In fact, just the opposite is true.

So if Insurance Companies are already selling at a loss, how will interstate competition lower costs? We already know that if Insurers are forced to invest less money by absorbing a larger loss, the market suffers, their investment income falls, and markets – and our 401K’s drop like a rock. This is all interconnected. And as the insurance money is pulled out of the market, their investment profits – which also pay their operating costs – will fall into a death spiral.

Interstate competition isn’t going to lower insurance costs at all. It can’t! So we need to stop saying it will.

And another interesting tidbit I have learned from 15 years as an Insurance Agency owner, Insurance Companies will not oversell their targeted revenue. They set their entire financial operations to a specific target by using extremely accurate financial predictions. Do you know what happens if they have a very good quarter and beat their projections? Most companies throw a party. Insurance Companies will raise their rates to stop selling so many policies.

You are thinking “that doesn’t make sense”. If an auto manufacturer exceeds their projected sales they will crank up production even more. They will work overtime to get as many vehicles to market as possible. Surpassing your sales projections is a good thing. A wonderful thing.

Unless you are an Insurance Company.

Too many customers and they will have to add on more employees, more brick and mortar offices, more computing power and people. And your costs skyrocket.

A few years ago, a friend had a furniture restoration business. He was getting more business than he could handle so he hired several workers. He went from a one man shop to 8 or 9 employees. And he needed an office manager, larger space and more tools and equipment. And he wasn’t bringing home any more money and managing all those people took up all of his time. So he downsized back to just himself. And he is making the same money.

So when Insurance Companies reach their projected sales, they will often raise their prices by a lot. Not to make more money on each policy, but to prevent people from buying from them. It is called “servicing their base” and if you are trying to sell insurance like I am, it means I can’t sell such expensive policies. They turn the faucet on and off. Later, when they need more customers, they will lower their prices.

So how will interstate competition force lower prices on a company that cannot financially grow beyond a self imposed limit? They raise and lower prices to keep within their projected and desired size.

So, no. Interstate competition will not save us any money. Insurance doesn’t work like that. It is a completely different business model. And to most, it is completely illogical. But if you understand it, it is an easy concept.

And after 15 years in the insurance business, I can tell you for a fact that companies do not deny claims to make more money. They plan to pay out money. It is all baked in to the calculations. Claims are not denied because insurers are greedy. They are denied or paid according to the contract. Yes, your policy is a contract. Some claims are cut and dried. They are obligated to pay and they do. Other claims, not so much. When I hear people complain that their claim was denied for no reason, I call the claims department and get the truth. And only rarely do I find something that isn’t proper. And usually that is because the claims adjuster wasn’t very good. Or was a complete idiot.

Sadly, Republicans, like Democrats, are attacking the wrong target. Defensive medicine, where the doctor orders extra tests to prevent a malpractice suit and the high costs associated with litigation are more to blame than Insurance Companies. And neither Obamacare nor RINOCare address the high cost of the care itself. They are only going after the cost of insurance. Which is only a symptom of the real problem.

But can we please dispel the myth of interstate competition? Are all of our politicians that stupid? Or do they think we are?

Probably the latter.

 

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About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

14 Responses to “Competition ‘Across State Lines’ Won’t Make Insurance Any Cheaper.”

  1. Sweet Tea says:

    Twenty years ago when I went to my Ob-Gyn for my annual physical, I was required to write the practice a check for the visit. I was given a receipt which I then filed with Aetna and my employer provided health insurance carrier sent me a check for reimbursement for my expenses, after co-pays, deductibles, etc.

    Then we went through a decade or so where I paid a copay like $25 or $50 for this same annual visit and the Doctor hired an army of people to file the insurance on behalf of his patients.

    Today I go to the Ob-Gyn and thanks to Obama Care- there is NO Payment required.
    So now the Dr. doesn’t even get a co-pay- that seemingly insignificant $25 or $50 cash flow just to keep the electricity on and the employees paid each week. NOTHING until the Blue Cross Blue Shield payment comes in the mail 6 weeks later.

    Healthcare costs have skyrocketed. Physicians’ costs and malpractice have skyrocketed.

    The time has come to go back to fee for service healthcare. When people have to write a check, the Dr. is paid and patients have to file with their insurance for reimbursement of their healthcare costs and understand the actual cost of their treatments then healthcare costs will come down. Unnecessary labs and visits and procedures will go away in a fee for service healthcare system.

  2. Trump Watcher says:

    1) Stopping the sale of insurance across state lines is government interference, or regulation. Regulation that was without a doubt purchased by corporate or special interest lobbyists carrying checkbooks. This is not about if insurance will be less expensive, it is about free market commerce. This is the problem I have with the lug nuts. They want to pick and choose what part of heathcare is government regulated and what part is not. That is nothing but BS.
    2) Anything that Wall St. lobbyists want is going to make their product more expensive, and be bad for the consumer.
    3) Once again Tom tells us what he thinks will not bring prices down, but not what will bring competition to healthcare??????
    4) Tom, have you ever sold heath insurance? Or, just automobile insurance?

    Your whole article is ignorant. Yes, the price of at least some types of insurance depends on how well their investments do. But, but no means are insurance companies in business to loose money. The tremendous amounts of money that a few insurance companies are spending on advertising for new business proves that.

    Again, this is about free market and competition. I would encourage you to retract this entire article.

    • Tom White says:

      For the record, yes. I have sold health insurance, but not life insurance. But this article is about how insurance companies make money. The product is irrelevant.

      And for your information, you can already buy health insurance across state lines. Exactly like we can buy auto insurance. The company I work for had Blue Cross and Blue Shield of North Carolina when I started, now we have Cigna. I used to have United Healthcare in a former job and so did people in the 40 or so states we had employees working in. You can buy Progressive i all 50 states and you can buy United Healthcare i all 50 states. Each state regulates the companies be it life, health or auto.

      Are you suggesting that the Federal Government tell states they can’t regulate insurance companies in their state? Last time I checked the Constitution, states had the right to do so. What the insurance does is make sure things work like they are supposed to work. They keep a close eye on company financials and will step in and run things should a company fall below the financial health threshold. I have seen several companies fail and the state made sure the insured were transitioned without interruption.

      We already established the fact that insurance is sold at a loss. Companies are under absolutely no obligation to invest their money to subsidize the price of their product. And as I said in the article, the only way to lower the premiums is to take a greater underwriting loss intentionally. Which lowers the investment capital and diminishes returns, in addition to the loss in premium. Insurance companies would rather stop selling policies than cut their own throats. They are publicly owned and have an obligation to shareholders.

      I would suggest that what you see as my ignorance is actually a lack of comprehension on your part. And total ignorance in the way “float” and insurance in general works. It is a complex structure with many tentacles that are intertwined. You may simply lack the mental capacity to fully comprehend this. That is what I am here for. To explain things that are too complex for you to understand.

      Read it a couple more times. That may help. Or take an insurance finance class. But be prepared to understand that the complexity of insurance finance may be beyond your ability to comprehend.

      Sorry to be so blunt, but I deal in facts. Not emotions.
      Tom White recently posted…Competition ‘Across State Lines’ Won’t Make Insurance Any Cheaper.My Profile

      • Trump Watcher says:

        So, the Virginia GA just had a bill (HB2233) passed in the House, failed in committee in the Senate, that would have allowed Virginians to purchase their health insurance across state lines, when we can already buy health insurance across state lines??????? Why the bill? Where is the advertising from these out of state companies?

        You are misinformed on this Tom. Also, it is government regulation. That means it is bad.

  3. Robert Shannon says:

    If I may,having been a licensed health insurance agent for decades and having studied the economics of health insurance in great detail offer a few insights.

    First of all too many confuse health care with health insurance, they are two separate and distinctly different animals. Care is what we receive when we visit the doctor/hospital/emergency room etc. Insurance is a mathematical model based on a host of variables, premiums, admin costs, claims, underwriting, & reserves (to pay future claims )

    Insurance has become a form of welfare in both the Medicaid and Medicare models. Part D in Medicare the Prescription drug coverage that was added to the program back in 2004 is a classic example of how badly government has screwed the markets up, distorting both pricing and coverage. How could you knowingly add 1 trillion in new costs over ten years with no accompanying new revenue to a program that was already in ” wheels coming off ” mode ?

    It is a unsustainable model in group and individual policies because of government interference. When underwriting is thrown out ( and that is what you do when you force a insurance model to pay for risks that were not properly underwritten or priced to begin with ) you can not price insurance policies ,when mandates tell insurance companies that they must cover XYZ you no longer have a insurance policy you have a dictate from government that has little to nothing to do with what most of us understand an insurance policy to be. Pre-Existing conditions and not having health insurance prior to diagnosis , rendered insurance companies doing the job of underwriting the risks no other choice but to price in what was a elevated level of an almost certain amount of claims when that pre-existing condition reared it’s head and started causing the need for treatments. No different than XYZ Insurance company telling Mr. Smith they won’t write him an auto insurance policy because he has had multiple D.U.I ‘s or 100 reckless speeding violations. You can not underwrite or price a risk of this nature…………unless government steps in and tells you you must, and also tells you , by the way don’t charge Mr. Smith any extra premium, just spread his risk costs among your other policy holders ? Does that make any sense ? It’s as if a grocery store clerk adds $5 to your total to pay for the shoplifting that occurred the day before at the grocery store .

    On lowering costs for both health care and health insurance we must arrive at the end of the day with 4 tangible changes included in the Repeal of the ACA

    1. Pay for routine care out of pocket, stop insurance policies coverage for doctor visits, prescriptions, annual physicals. Competition then would set in because people are now aware of the costs and have an incentive to ” get the best deal” When a 3rd party is paying consumers have no idea what the costs are, and often don’t even care. Paying for routine care yourself makes you a smarter more discriminating shopper—- and costs come down. Health Insurance was never designed to pay for this type care—but for catastrophic events.

    2. Health Savings accounts are BRILLIANT. It builds in a incentive to live a healthy lifestyle because if you don’t use the money for health care expenses you get TO KEEP IT.

    3. Tort Reforms–SERIOUS TORT REFORMS. In numerous states OBGYN shortages have become a serious crisis. Why is that ? Errors & Omission coverage for when a OBGYN makes a mistake or a lawyer say’s they made a mistake is off the charts. One OBGYN told me that $34 of every office visit goes to the payment for this one cost item. Every patient that comes in the door and pays ( whether self pay or an Insurance policy pays for the visit) $34 goes to simply pay for the costs of practicing that form of medicine. It has grown so acute in a number of states that a pregnant woman must travel sometimes 100 miles to find a OBGYN. You can not watch TV for 3 minutes and not be exposed to law firms trolling the airwaves for someone ‘who took XYZ drug, or someone who had hernia surgery, hip surgery etc etc etc ” Negligence or malpractice is something that our legal system is designed to remedy. This litigious society we live in today goes well beyond that and drives up ( via the practice of defensive medicine & ridiculous E & O coverage for the Doc’s ) costs for all of us.

    4. Get rid of the MANDATES and allow consumers to buy health insurance that they design and want. I paid around $200 a month just 8 years ago for a catastrophic health insurance policy with a $10,000 deductible. I didn’t have doctor co-pays, nor prescription medicine coverage, I had a policy that would have kept me from being bankrupted if I had a major health incident after I paid the deductible. I was happy with what I had. Today I pay $700 a month and have benefits I don’t use and never wanted. Meanwhile I am gouged because windbags in Congress want to ” look out for me”—NO THANKS. Let consumers buy their health insurance ala’carte, and add or decline certain coverage’s they neither need or want. That would have a dramatic effect on the costs of health insurance.

    The Presidents bill to be voted on Thursday will likely fail and not pass. Many can and will argue the proposal doesn’t go far enough in actually repealing the ACA. It is a literal mess because we relied on government, the marketplace didn’t cause this , citizens asking elected officials for help with their health care costs is what caused this. You would think by now we would have learned this lesson, but sadly we have not.
    Bob Shannon King William

  4. Trump Watcher says:

    # 1, is correct. However, we will never see it because the heathcare/health insurance/drug company lobby will not allow it under any circumstances. It is they who write these bills. I doubt any member of congress or their staff has the ability to write, or completely understand what the industry writes for them. Hence, no matter the party, a bill has to be passed to see what is in it. High level Congressional staffs are mostly little more than campaign/party operatives.

    #2 No, no, no. HSA are just government subsidation, and do nothing what so ever to control the cost of health related industries. HSA actually justifies health related price increases. This is another example of someone who wants to pick and choose which government is in our healthcare.

    #3 Not a chance. I used to think this way also. But, healthcare in this country is bad enough already when compared to the rest of the world. Removing the only industry “police” would destroy the industry in our corruption based society. Not a chance. Besides, the legal lobby will stop this in its tracks. Not going to happen.

    #4 Ok.

  5. Robert Shannon says:

    Ignorance is bliss as they say. ” Our healthcare is bad enough already when compared to the rest of the world”………….Let’s start there shall we ?

    Just what part of the world has a better health care system ? Is it Canada and Britain where you wait 6-19-12 months for knee replacement. It often involves actually being placed in a lottery system in Western Canada and Britain for service…is that the great health care in other places in the world ?

    Mortality Rates have climbed in the West ( particularly in the U.S ) because of diabetes, smoking, alcohol, morbid levels of obesity, lifestyle choice related issues. Many of these folks are on Medicaid and simply go to a doctor and ask for a PILL to solve their issues, when the ISSUES are their own personal choices causing many of their medical ailments to begin with. What kind of health care system we have won’t change a thing when people behave in such idiotic manners.

    As for HSA being a government subsidy ???? Health Insurance premiums are for many self employed and businesses a tax deduction. So if Trump watcher wants to throw the entire tax code into the Ocean I’ll help him lift and toss it. You can not compare the billions that wholly subsidize Medicare or Medicaid with allowing someone to keep their OWN MONEY….not to overlook the incentive they now have to stay healthy. No other manner of paying for your care or deductibility of premiums goes so far as HSA’s do in providing that incentive to remain healthy. That drives DOWN COSTS, not raises them. I would enjoy listening to Trump watchers economic dissertation on how HSA’s drive costs up ?

    Medicine and the practice of it is one of the most regulated industries in the U.S. Each State has a Medical Review Board that handles complaints and ask any Doctor the length they go to to avoid being dragged in front of this Board and the punishing consequences they already face if found negligent. If found negligent beside losing their license to practice they then face civil action. All the legal costs with 70% often going to the attorneys anyway is to drive up preventative medicine which forces physicians to order even more costly tests, which harm everyone. The same paradigm then takes over where it is cheaper to settle a frivolous claim than to litigate it….so they settle and that costs all of us more, much more. Look at Texas that passed serious strict litigation reform 5 years ago…their economy is one of the best performing in the country and the reforms are estimated to save every household in Texas $1200 a year.

    Learn what you are talking about before you start telling everyone else how bad their ideas are.
    Bob Shannon King William

    • Trump Watcher says:

      It’s is you and your type who does not have a clue what you are taking about. I can back up what I said, you nor Tom rarely, if ever, can. Or, will.

      1) See this link for the state of US healthcare vs. other countries. Where is the link to back up what you say?

      http://www.commonwealthfund.org/publications/issue-briefs/2015/oct/us-health-care-from-a-global-perspective

      2) Tax breaks are a government subsidy, plain and simple.. HSA’s are government subsidized in the form of tax breaks, and do absolutely NOTHING to hold down the price of healthcare, insurance, or drugs. NOTHING. If people want to save money to pay those who are robbing them with high prices for healthcare, go right ahead. But do not use my tax dollars to subsidize your or their stupidity and/or ignorance.

      3) Tort reform is not going to happen. That is a fact. Therefore, even though you do not know what you are talking about, it really doesn’t matter. Not worth any discussion.

      4) Your guy Trump is a complete, total, absolute, failure thus far. Nothing but a lie and a con job on the middle-class and poor. Congressman Tom Massey, Kentucky, this morning on TV told us exactly who was behind the Trump healthcare disaster, the insurance companies.

      5) Hillary is no better or worse than Trump. They are both professional liars, in bed with Wall St.. I voted for neither. I do not have Obamacare, never have. Trumpcare is far worse.

      Do yourself a favor. Turn of that AM radio.

    • Trump Watcher says:

      I just watched a video about why healthcare is so expensive in the US vs. other countries. The guy in the video said Texas saved a whopping .1% after doing Tort reform. That is 1/10 of 1 percent that Texas saved after doing Tort reform.

      There you have it.

  6. Pied Piper says:

    If you want to save money, put your elderly mother in substandard housing like one former Hanover Delegate, despite being worth millions.

  7. Russ says:

    My concern, having read the article, is that ok so Interstate competition may not be a cost down driver.

    Still, access to purchase and select policies across state lines enlarges the pool of options to choose.

    This means, using the logic of the article, that I have a better chance of finding the company who has lowered their prices to gain customers. So where is the problem with that?

    Russ

  8. David Zodun says:

    Tom,
    I followed your arguments against thinking competition across state lines would lower costs. Sounded good to me, so I forwarded it to my best friend. He says if he can buy insurance across state lines, the pool of possible sellers will be much larger than currently is the case. So this would give him an opportunity to buy from one of the companies that happens to be lowering it’s premiums to attract more clients. He says this is how he could save money. What say you?
    Dave Zodun

    • Tom White says:

      David – We can already buy across state lines. United Healthcare, Blue Cross, Cigna, etc. Several Congressmen have said that they want us to be able to buy across state lines like Auto insurance. They gave the example of Progressive and GEICO. Given the fact we already can buy across state lines, I am not really sure who is “locked out”. But we really can’t buy car insurance across state lines now either. If one of my customers moves to another state, they will generally non renew the policy. Even if they sell insurance in that state. They will need to buy a state specific policy.

      Every state has different auto insurance laws and insurance requirements. Each state sets their own standards that all insurance companies must follow. Some states are “no fault” which means that your insurance pays no matter who was at fault in the accident. In Va, the person at fault pays. We also have minimum required coverage. In Va it is 25/50/20 which means that if you cause an accident your insurance will pay a maximum of $25,000 if one person is hurt, $50,00 if more than one are hurt and $20,000 in property damage. So if you hit a loaded bus and it injures dozens, the most your insurance will pay is $70,000. ($50K + $20K). This is LIABILITY only. You may opt for coverage for your own vehicle. In California, the minimums are 15/30/5. Which means that the most it will pay out is $35K.

      Each state sets their own insurance rules. And you cannot buy California insurance if you live in Virginia. Your policy must meet the state minimums and be a Virginia approved policy.

      Now by Federal Law, if we drive our car to other states, for example, if someone drives a car insured in CA to VA, their minimums (if that is what they buy) will go up to match Virginia’s minimum. But of they relocate in Virginia, they must get another policy, even if it is with the same company. (Some insulate the insured and make it see like it is the same policy, but they must get a new contract.)

      So if I can’t call an insurance agent in California to buy insurance, and I must buy a Virginia policy, are we really buying auto policies across state lines now?

      Not really.

      So the real question is, what the heck are they talking about? Will the federal government take away a state’s right to regulate health insurance? Can Virginia allow maternity coverage to be optional? Will CA be able to mandate free birth control? Does the state get to look at the insurance company’s books to make sure they are solvent? Can a state move in as a conservator if a company is going broke?

      We simply don’t know. I would maintain that the only way to truly buy insurance across state lines is to allow the federal government to make these decisions and take away the state’s rights. Would that be acceptable to Conservatives?

      Simply tossing out the phrase “buy across state lines” is meaningless without details.

      And to address your friend’s question, keeping in mind what I wrote above, in theory you can find the cheapest by shopping around. But with health insurance, the open enrollment period is at the end of the year. Is your friend planning to shop every month? Will they allow us to drop one policy and get another during the term of the policy? We can shop monthly for auto and cancel the policy. But you may have to pay a cancellation fee unless you let the policy to cancel for non payment. Would you do that every month? Probably not. With Auto, most of us shop around once a year, or 6 months. Surely we wouldn’t change health insurance in mid stream. Getting a new health policy is a lot of work.

      So, we can and do shop at renewal time. Or enrollment. But do we have the time to shop more often? I don’t. And I am not even sure the health insurance industry would raise and lower their prices like Auto companies do. First, they have to file the rates with each state and the coverages as well. And it must be approved by each state. It is my experience that most auto insurers change their rates state by state. And they may raise the rates in Tidewater and lower them in Roanoke. If you move from a rural area to a city, your car insurance will go up – in the same general area.

      As I have said. The issue as VERY complex. Buying across state lines will not, in and of itself, lower rates and increase competition. Some companies won’t sell in some states. Too many rules and regulations. Like California. But you can’t buy insurance in Nevada unless you live there. You can try to scam the system and lie, but the contract you sign gives them the right to decline to pay your claim if you lied. It is cheaper to buy non California emissions vehicles in other states. But of you operate it in California, you will have to add it.

      So to simply say you will call around and buy the cheapest policy in the country most likely isn’t going to happen. A small regional health company can file to sell in Virginia already. There is a process to become an admitted company.

      But I remain convinced that the competition from buying across state lines isn’t as simple as it sounds and it won’t actually work in reality.
      Tom White recently posted…While My Cuckservative Snowflakes Gently MeltMy Profile

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