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**beethyday** · 01-02-2007, 06:03 PM

Never heard "car insurance" described as a "commodity" before. Given the wide variety of coverages available, I can't see how it passes the interchangability test.

Since there are plenty of companies who insure cars (I'm sure you've seen the ads), how do you reconcile that with the idea that there is "no competition"?

The fact that CI is a state requirement doesn't mean that there is no competition within the industry - the same logic regarding "requirements" can be used to make the argument that there is no competition in the food industry because we're all required to eat, or that there is no competition in the fashion industry because social mores frown upon nudity, therefore requiring all of us to dress.

01-02-2007, 06:03 PM	#26
beethyday Join Date Oct 2005 Posts 497 Senior Member	Never heard "car insurance" described as a "commodity" before. Given the wide variety of coverages available, I can't see how it passes the interchangability test. Since there are plenty of companies who insure cars (I'm sure you've seen the ads), how do you reconcile that with the idea that there is "no competition"? The fact that CI is a state requirement doesn't mean that there is no competition within the industry - the same logic regarding "requirements" can be used to make the argument that there is no competition in the food industry because we're all required to eat, or that there is no competition in the fashion industry because social mores frown upon nudity, therefore requiring all of us to dress.
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