Summary Statement: ACI Testifies in North Carolina Regarding Cartel Insurance Pricing

Before the North Carolina Joint Legislative Study Committee on Automobile Insurance Statement of Steve Pociask President of the American Consumer Institute, Center for Citizen Research January 25, 2012 Raleigh, North Carolina Today I will talk about a number of problems with the current regulatory system in North Carolina, including the existence of hidden fees and […]

ACI Responds to North Carolina Insurance Commissioner’s Opposition to Insurance Competition

We are disappointed to hear Commissioner Goodwin’s decision to oppose meaningful regulatory reforms in the state’s auto insurance market.  These reforms are aimed at ending the current government-sponsored price-fixing rate bureau that shields insurance companies from competition.  The proposals he opposes would provide fair rates to good drivers, increase transparency and lower consumer prices through […]

Cash for Clunkers May Not Benefit Consumers or the Environment

Subsidy Could Harm Consumers and May Not Save Energy   President Obama has signed into a law a program to stimulate new car purchases and take old gas guzzlers off the road.  The program, referred to as Cash for Clunkers, would give new car buyers a rebate worth thousands per vehicle, when they trade in an […]

Price Regulation Means Higher Consumer Prices?

While solvency protection, better consumer information and consumer protections are very important aspects of private automobile insurance regulation, a wide range of price regulations – such as prior approval, “file and use” and “use and file” – have persisted across the states with questionable results and benefits for consumers. The concern this raises is whether […]

What is Your Opinion About Recent Corporate Bailouts?

As Congress Considers Money for Automobile Manufacturers, Survey Finds that Most American Consumers Oppose Bailouts 62.8% of Americans said they oppose public policies that bailout failing corporations and 24.5% support such policies, according a nationwide household survey conducted by the American Consumer Institute. The groups most opposed to bailing out corporations included Republicans, union-employed and […]

Consumers Pay More for Insurance Price Regulation; Get Little in Return

Mounting evidence shows that onerous state-based price regulation has adverse consequences on insurance markets — increasing industry costs, discouraging market entry and competition, and creating price distortions. This ConsumerGram provides additional evidence that state-based price regulation of automobile insurance tends to increase consumer prices, thereby reducing consumer welfare. These studies suggest that state-based price regulation […]