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They can't do that because other companies will undercut them to gain market share. They could collude to set prices, but that's illegal in the US. Also, some a
by bjterry 10y ago
They can't do that because other companies will undercut them to gain market share. They could collude to set prices, but that's illegal in the US. Also, some auto insurance companies aren't organized as corporations, such as the Auto Club of Southern California, which is a not-for-profit mutual. They aren't saints, but since they redistribute most of their profits to policyholders, they don't really have much incentive to keep prices high.
- cmdrfred 10y ago> They could collude to set prices, but that's illegal in the US. Interestingly, that is not true for insurance companies[0], at least at the federal level. They are exempt from a lot of federal law. >The McCarran–Ferguson Act, 15 U.S.C. §§ 1011-1015, also known as Public Law 15,[1] is a United States federal law that exempts the business of insurance from most federal regulation, including federal antitrust laws to a limited extent. [0]https://en.wikipedia.org/wiki/McCarran%E2%80%93Ferguson_Act https://en.wikipedia.org/wiki/McCarran%E2%80%93Ferguson_Act
- jedmeyers 10y agoCorporations have been doing illegal things for a while now. All you have to do is to share a reasonable part of illegal proceedings with the government - it's called a 'fine'.