Your car insurance company does not arbitrarily set its own rates in 49 states, Illinois being the exception. The company must petition to charge appropriate rates from your state's board of insurance. The Board regulates the car insurance rates in your state, and legally approves the car insurance company's rates. Your state board of insurance is designed to monitor all activity of insurance companies on the behalf of private citizens and businesses. They allow issue (and sometimes revoke) licenses to insurance companies and agents based on their meeting of certain state requirements. All agents and companies must be able to meet standards for conduct and auto insurance knowledge.
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