With the economy being revived slowly but steadily, most industries are also recuperating from the lethal blow of the recession. One of the industries that are getting better is the auto insurance industry which poses about 14% growth compared to last year. SulAmerica, with $109.6 million, generated a 10.5% increase as compared to the 2009 revenue. Many other insurance companies are also following the upscale trend in the market charts. Experts say that this is the beginning of a better year for the insurance industry following the aftermath of the worldwide economic downturn.
There has been a significant drop of people who can continue their auto insurance policies during the recession. Many people diverted their funds to besic necesities such as food and education and many others tried to salvage their mortgages and car loans by cutting expenses—especially on expensive comprehansive car insurance plans. But as the economy gets better, things also return to normal. And people get to choose more comprehensive plans as they continue to see the benefits of getting these insurance plans. It becomes less of a “useless expense” but more of a wise investment.
Before hand, auto insurance plans are viewed as additional expenses that will only add to the monthly liabilities list. This kind of mindset thus did not help the Americans survive the hard times because having little coverage or no insurance at all simply made the vehicle owners incur more debt in the form of car repir costs during accidents and payment for hospital and legal fees.
This might also signify the growing appreciation for insurance plans. Most people who have been caught unaware by the recession failed to prepare for the hard times and thus when they lost their job they are already willing to accept any offer just to live. Insurance plans and premiums will at least help people during times when they are most financially-troubled.
With more and more people being eligible to become car owners, the car insurance industry will continue to prosper. And as the consumers realize that buying comprehensive car insurance is an investment rather than an excess liability, more car owners will get to enjoy the beenfits of being fully protected while on the road
According to comScore, there has been a significant upsurge of auto insurance buyers since year 2008. Of the 20 to 22% increase in insurance customers, most of them availed of their plans online. And this has been the focus of subsequent studies about auto insurance selling.