Report: Car Insurance Cos. Contribute Significantly to California Economy

Los Angeles freeway and skyscrapersA report authored by the Insurance Information Institute (III) and released last month through the Insurance Information Network of California asserts that companies providing auto and other types of coverage have made a significant impact on the Golden State’s economy in recent years.

According to the III data, all insurers in the state in 2009 wrote a total of $114.7 billion worth of premiums; approximately $19 billion of those premiums were written by California car insurance companies.

As for taxes paid as a result of writing premiums, insurers located in California contributed to the government the largest amount of any state in the nation, according to the III’s numbers. Premium taxes paid in the state totaled $2.05 billion in 2009; the state with the next highest sum was Texas, with $1.14 billion.

Additionally, the report indicates that insurers contribute greatly to the Calif. job market. Citing numbers from the Bureau of Labor Statistics, the III states that insurers provided 297,431 people with jobs in 2008, resulting in $20.7 billion in compensation being paid.

Another positive influence noted in the report is the large sum of money paid out by insurers that went to helping keep Californians on their feet financially. Measured by incurred losses, Property/Casualty insurance companies paid out $28.7 billion in claims last year. Nearly $11 billion of those payments were made by auto-coverage providers.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

No comments yet.

Comment on this article