J. Robert Hunter's recent op-ed on auto insurance is based entirely on the premise that consumers do not care much about their insurance costs and that they are incapable of shopping around ("Loyalty may not pay when it comes to insurance," Jan. 19).
Mr. Hunter seems to think that consumers faced with higher auto rates simply shrug and pay the bill. He says consumers remain loyal to their insurer, even if they feel they are paying too much.
For someone dedicated to working with consumers at the Consumer Federation of America, Mr. Hunter does not seem to think too highly of them.
Most consumers would complain immediately to their agent or company representative if their policy renewal notice included a big increase. They would also likely start shopping around.
One thing I have learned in my eight years as president at the Insurance Information Institute: Consumers are smart. If they don't like the price of their auto insurance, they do something about it.
Today's Internet/smartphone/24-7 customer service and 1-800 offerings make shopping easier than ever. Comparing companies, prices and options is easier than ever too.
Consumers are inundated with insurance ads encouraging them to shop and compare. Indeed, the I.I.I. conducted a national survey last year that found 80 percent of drivers reported seeing at least one auto insurance ad over the previous week, and 63 percent of all U.S. drivers said they comparison-shopped when their policy came up for renewal.
The industry wants consumers to shop for insurance. The I.I.I. is an insurance industry-sponsored organization that spends considerable time educating consumers about how to shop for insurance. We have done it for more than 50 years. We work with the news media and consumer organizations on this topic. We write articles, film videos and publish brochures to tell people how to shop. The insurance industry likes it when we do all of those things.
What insurers don't like are rules that make it harder to price insurance and compete against each other. Yet Mr. Hunter, a former Texas insurance commissioner, feels insurers need to be regulated more heavily than they already are. Driving competition out of Maryland is the last thing consumers need.
Auto insurance is the ultimate competitive marketplace, and that competition benefits the consumer through lower prices, lots of choices and more diligent customer service. Mr. Hunter's regulatory controls threaten all of that.
If consumers decide to stay with their auto insurer after there is a price increase, it is not because they are foolish or lack the means to shop. Rather, they may like the terms of the policy. They may have liked the way the insurer handled their claim or how their agent handled a question. They may have several policies with the same insurer, and their total insurance program meets their needs.
The best way to help consumers is to arm them with the educational tools they need to make smart insurance-buying decisions and continue to provide them with a competitive insurance market.
Robert Hartwig, New York
The writer is president of the Insurance Information Institute.