Tempe, Arizona is one of the hottest tourist spots in Arizona and a major commercial center. If you are not already aware, Tempe is home to some of the most prestigious and popular universities in the United States including the University of Arizona, the University of Southern California, and the University of Colorado.
Unfortunately, this list doesn't include one of the biggest culprits for why a person is paying so much for their car insurance policy - because of the brand of car they own. Just like I went into a commercial for automobiles. It's amazing how much money people are paying more than a few thousand dollars for insurance policies that they can get from other car owners in their town.
With all the research and looking up price quotes over the internet, it's not surprising that many people are paying higher prices than the average person for their insurance policy, but when it comes to being insured by one of the larger national companies, like Progressive or Geico, they are covered by multiple insurance companies. This means there is little competition and hence, higher rates.
With all the national insurance companies competing against each other for their share of business, prices are bound to go up. However, with other factors like rising unemployment and many people having to take out loans in order to pay for rising food and housing costs, it has only made things worse.
On top of this, with companies such as Progressive, Hartford, Nationwide, and Allstate, it's easy to see why Arizona residents are paying so much for their car insurance policy. With the presence of these companies, not many insurers will be left standing.
Progressive's largest clients are other insurance companies, and the reason is because they do not have competitors in Arizona. So when you're paying an Arizona family two times what you are paying to Progressive, they are getting you a far better deal on their policy than any company in Tempe would be able to.
Many Tempe residents who have owned a Ford or Chevy pick-up truck have complained that they feel they are overpaying for their policy. The same complaint applies to those that own other types of vehicles.
Progressive is one of the larger national insurance companies, and many of their customers feel they are receiving a deal that is only offered to national companies. Since it is Arizona, many say they feel like they're getting fleeced.
Another complaint about national insurance companies is that many times the service is not what you expect. Some people complain that they've been dealing with their local insurance company who is willing to settle disputes between them over what is covered under their policy.
For many people who own a Dodge or a Ford, these services are nice, but for those that reside in Tempe, they are inconvenient and often times, illegal. With the National Insurance Companies chooses to keep their headquarters in states with lower taxes, this kind of low tax state is very common.
The problem with why is car insurance is that they are always more expensive in Tempe than in some other part of the country. The national companies are able to do this because they control the market.
When you're looking to purchase insurance, make sure you are looking at quotes from companies that are based in your state. Since the National Insurance Companies controls a large amount of the insurance market, they will usually charge more than a local company in Arizona would.