The Limitations of a Competitive Auto Insurance Market: How to Reduce Rates and Increase Insurer Profitability Simultaneously

11/23/2004

Executive Summary

Auto insurance markets are atypical. To illistrate this, it is helpful to compare the market for auto insurance with the market for refrigerators. The market for refridgerators is an excellent example of an efficient market. The auto insurance market, in sharp contrast, is a very inefficient one, at least from the consumer’s perspective, and is unlike most markets . . .