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First Quarter 2008 Car Insurance Rate Report
In another blow to cash-strapped consumers, car insurance rates are on the rise, according to Insurance.com, the leading online auto insurance agency in the United States. For the first time in more than a year, the Insurance.com Car Insurance Rate Report has found signs that car insurance rates are on the rise.
"While the rate increases we are seeing in the 1st quarter are relatively small in some states, they represent a turning point for auto premiums, which had been holding steady or declining over the past four quarters," said Dave Roush, CEO of Insurance.com. "We have seen all of the major auto insurance carriers reporting an increase in the average amount paid on bodily injury claims, fueled by rising medical costs. Historically, these factors have signaled the beginning of a national upward trend in rates that may continue throughout 2008 and beyond."
The Car Insurance Rate Report is a compilation of the lowest car insurance rate quotes given to consumers who visited Insurance.com during the first quarter. On average, the lowest quotes given during that timeframe increased 1.05%, from $1,811 per year to $1,830 per year. At the state level, rates in 28 states were higher in the first quarter, while rates decreased in 19 states and the District of Columbia. These figures reverse the trend noted in Insurance.com's 2007 Pricing Report, which reported a 5.2% decrease in car insurance rates from 2006.
"To be sure, individual companies or industry groups might report annualized increases that are still quite small, our data is real-time and represents the real-world experience of consumers who have gotten an online or phone quote in the last 3 months."
Among the top 10 states seeing the sharpest increase in auto rates in the 1st Quarter were Florida (up 6.56%), Ohio (up 4.77%), Pennsylvania (up 4.18%), Georgia (up 3.15%) and Texas (up 2.4%).
ABOUT THE CAR INSURANCE RATE REPORT
Insurance.com's latest Car Insurance Rate Report highlights the lowest average car insurance rates quoted to consumers visiting Insurance.com in the first quarter of 2008. The rates consumers viewed, but didn't necessarily purchase, come from quotes consumers received as they shopped and compared rates from over a dozen of the nation's leading auto insurance companies. Over the course of a year, Insurance.com provides car insurance quotes to more than 1 million people visiting the website. While the Car Insurance Rate Report is a broad indicator of pricing activity in the personal auto insurance marketplace, it is not a comprehensive index as it reflects only the quotes of carriers that have participated in the Insurance.com platform in the states where it quotes (all states except Alaska, Hawaii, and Massachusetts).
Rising Gas Prices May Lower Car Insurance Rates
Recent government data indicates people are generally driving less, and driving fewer miles usually means fewer car accidents and injuries. Why are people driving less and how will this affect car insurance rates?
Higher Gas Prices Have Caused Changes. Gas prices started their rise in 2004, and there is no end in sight. Many people are trying to find ways to save money on gas, including hybrid cars. A recent New York Times article says people are beginning to cut down on gas spending by turning to public transportation instead of driving. They are also starting carpools and combining trips. All of these changes add up to fewer cars on the road and fewer miles traveled.
People Are Driving Less. In fact, AAA projected that fewer people planned to drive this Memorial Day than last year, the first such decline in years. In addition, new driving data from the Federal Highway Administration (FHWA) suggests that people are starting to drive less and buy less gas.
If these trends continue, higher gas prices could result in less driving, and eventually lower car insurance rates. What exactly is the connection between lower mileage and better car insurance rates?
Injury Payment Totals Usually Decrease with Lower Mileage. As people drive less, they tend to get in fewer accidents, leading to fewer injuries and fewer injury payments. That’s why many insurance companies give discounts for low mileage driving. If you drive fewer miles, your car insurance rates could go down.
Shop for Online Car Insurance Quotes. With sky-high gas prices and the economic downturn, can you afford to miss your best car insurance rate? Insurance.com offers free online car insurance quotes from top insurance companies, which allows you to compare multiple rates from different companies.
Marriage and Car Insurance: What will it Cost?
As you prepare for one of the biggest (and best) days of your life, you may be worrying about money. The ceremony, reception, and honeymoon are expensive, but you might be surprised to learn that getting married can save you money in unexpected ways.
Car Insurance. Marriage can lower your car insurance rates. Married people are considered safer and more stable because of their new commitment and responsibilities, and this can translate into discounts. As a couple, you may qualify for reduced car insurance rates with the same coverage. You could also earn a multiple car discount if you combine both your cars on the same policy. Depending on the driving records and cars of you and your spouse, you may get a better car insurance rate with separate policies. If one of you has a bad driving record, you might get better rates by taking a safe driver course. The only way to know for sure is to compare car insurance quotes from different companies.
New Home or Apartment. If you’re moving to a new house or apartment, your new ZIP code could get you lower car insurance rates. If it’s closer to where you work or places you visit often, a new location could also lower the car insurance quotes you get. That’s because you could qualify for a low-mileage discount on your car insurance, something to look for if you or your spouse will stay at home.
Other Insurance. Be aware that you may need to look for different insurance that covers your new wedding gifts and rings. Although your insurance rates might go down in general, you’ll want to consider adding other types of insurance and higher coverage amounts. Remember, you have more assets to protect now, so you’ll need to examine all of your options. Keep in mind that you might get better rates if you buy multiple types of insurance from the same company.
Life Changes. Whenever you have changes in your life, it’s a good idea to see if your insurance rates have changed and if you need different coverage. Life insurance, home or renters insurance, disability insurance, beneficiaries… it can seem overwhelming, but our many informative articles can help you understand insurance. With all the changes in your life, you’ll need to shop around, which is easy with Insurance.com’s free online car insurance rate tool.
Graduating Soon? What about Car Insurance?
After four years of classes, parties, studying, roommates, grades, and loans, you’re finally ready to graduate. You’re as prepared as you can be to start the rest of your life. Or are you? Consider what you know about car insurance, and about how to get a cheap car insurance rate.
There are a number of things car insurance can do to help you through the post-graduation years.
Car Insurance Protects You.
Besides the fact that the law requires it, you really do want car insurance. State mandated car insurance refers to liability insurance—property and bodily injury. This type of car insurance will protect you if you damage a car, person, or property (like a mailbox). Certain types of car insurance can also protect you from uninsured or underinsured drivers who hit you in your car or as a pedestrian. If you’ve just come off your parents’ health insurance and haven’t gotten your own yet, this could be very important.
Car Insurance Can Protect Your Car.
You’ve made sure your coverage is high enough to protect you from personal liability in case you cause an accident, but that’s not all car insurance does. You can also buy two types of car insurance that will help protect your car. Collision insurance pays for damages to your car from accidents you cause, and comprehensive insurance pays for damages to your car from things like theft, storms, and vandalism. If you total your car in an accident you cause, you’ll be glad you have collision or comprehensive car insurance.
Now that you’ve reviewed why you want cheap car insurance, you’ll need to look at your options. You may think that staying on your parents’ car insurance policy is the cheapest option, but you may be surprised to find that it’s not. Here are some things to consider:
You Have Coverage Options.
You may have higher coverages and lower deductibles than you need under your parents’ policy. Besides the fact that you’ll get a discount for already being insured, you can lower your costs by changing your options. Because your car may cost less and your assets are probably lower than your parents’, you can get cheaper car insurance rates by increasing your deductible and lowering your coverages a little.
You Can Save Money.
Most students don’t have many assets, so you can probably just buy small coverage amounts for now. However, keep in mind that many state minimum limits won’t even cover you fully if you damage a new car. The only way to know how much you can save is by shopping around and comparing car insurance rates from as many different companies as possible. One of the easiest ways to do this is by using our free online car insurance quotes tool. You can compare rates from 15 top car insurance companies at once. It’s easier and faster than most other ways of shopping for car insurance.
Pinching Pennies? Don't Drop Car Insurance
In these tough economic times, you may be tempted to skip car insurance coverage. Don’t. We’re all feeling the squeeze, but neglecting required car insurance could be a huge mistake.
All states have minimum car insurance laws. You might think you can get away without it if you can just avoid accidents, but you can’t be sure. Driving without car insurance is a crime. Most states have laws requiring you to show proof of insurance whenever it’s asked for. Often this includes random checkpoints that will catch you whether you’ve done something wrong or not.
Many states even have surprise car insurance inspections. In these, you have to mail in proof of insurance showing you were covered on the day they sent the letter. Once you’re caught without insurance, it’s too late.
Penalties for failing to maintain car insurance can range from a fine, to a suspended license, to jail time. If you get caught, your car or license plates could be impounded until you can pay the fine. Then, you have to pay another fee to reinstate your registration. It’s quite possible that all of these penalties could happen at once.
If you’re in an accident, there could be strict penalties imposed on you when you try to drive later. In addition to the problems described earlier, you’ll probably have to continuously maintain a bond or other proof of car insurance. If this bond expires or is cancelled, you’ll be subject to penalties again. States such as Ohio require you to keep this bond on file with an Ohio insurance company—even if you move out of state.
Also, keep in mind that car insurance is there to protect you. If you get in a car accident and cause damage to someone or their property, you’ll have to pay whatever your car insurance doesn’t cover. You can either pay a little now or a lot later.
Above all, if you think car insurance is expensive now, just try getting it after being caught without insurance. You’ll be in a new high risk category, and you’ll be expected to pay a lot even though you’re not a bad driver. Rates are on the rise around the nation, but car insurance is not optional. It’s illegal to drive without car insurance, and it won’t save you money.
If you’re having trouble figuring out how to get cheap car insurance, you can get a free online car insurance quote from Insurance.com. Or call one of our licensed agents, who can help you figure out how to save money.
Save Money On Summer Driving
Getting ready for summer driving means making sure your car is in good shape. Sure, you know how to Winterproof Your Car, and how to Make Your Car More Dependable. But how can you cut car costs for summer?
Car maintenance like tire inflation, oil and filter changes, and alignment can save money. Make sure to use the proper type of oil, since summer is hotter and some cars require different oil to accommodate the heat. To really avoid overheating, have your car’s cooling system serviced, especially if you’re planning a long car trip. And make sure your radiator isn’t damaged, since a hotter engine is less efficient and more likely to break.
Figure out if you’re really set on visiting a specific place. It’s true that going to a far-away theme park or expensive resort is more fun for everyone, but is it really necessary? Check out closer attractions. You might even save money by just having a picnic at a local park—as well as saving gas on the trip. In fact, you might save money on your car insurance rate by keeping your yearly miles under 10,000.
Pack meals, snacks, and drinks in a cooler instead of stopping all the time. You’ll save money on food, and save time because you won’t have to stop. If you’ve decided to travel far from home, try to pack as little as possible. This will save money on gas because of the lower weight and also make sure you don’t have to put stuff on the roof, which cuts gas mileage because of wind resistance. Also, plan your route so that you’ll avoid heavy traffic if possible. That’ll save you time and gas—and reduce stress, too.
A great way to start saving for the summer is examining your car insurance. Comparing car insurance quotes tells you if you’re getting the best rate. You can get free online car insurance quotes from Insurance.com.
Can You Really Save Money On Gas?
Constantly rising gas prices are making us all search hard for ways to save. Online car insurance rate comparisons are one way to check for savings, but are recent media claims about errors at the gas pumps a cause for concern?
In a word, no. Unless the pump is really cheating you, you won’t save much anyway. There are much easier ways of saving money on gas, and most of them have to do with improving fuel economy. Here are some tips for saving gas without making big changes.
First, consider car maintenance. Many common car maintenance procedures can really affect gas mileage. An oil change, including a new filter and synthetic oil, can help your car use less gas by making the engine run better. A tune up does the same thing, especially if you make sure your air filter is checked or replaced at the same time. Properly aligning and inflating the tires means your car wastes less gas fighting resistance.
Next, think about your driving habits. Slow down a little. Driving over 60 steadily cuts your car’s gas mileage. Don’t start and stop so suddenly. Hard acceleration uses a lot of gas to move a little distance, and hard braking uses gas until the last possible second. If your car has them, use gas-saving features like cruise control and overdrive. You’ll be surprised at how much you can save by easing off the pedal.
Also, take a look at how you use your car. You might be able to save money on gas by combining multiple trips, or walking and biking more often. Reducing your annual mileage to below 10,000 miles could also reduce your car insurance rate. Your car uses a lot of gas when it’s idling—more than restarting its warmed-up engine does.
Finally, try saving some money on your car insurance rate. Check out our free online car insurance rate tool and get as many quotes as you want. It’s definitely one of the easiest ways to save money on your car.
