With gas prices soaring and poised to move even higher later this fall, most drivers are looking for ways to lower their driving costs. There is good news for many.
Depending on where you live, the average auto insurance premium quotes may have decreased by as much as 10 percent during the past six months. So if you have not shopped around for a lower auto insurance rate, now is the perfect time.
According to an Insurance.com Pricing Report, the average consumer received an annual auto insurance quote of $2,323 in the first half of 2005. This is a $43, or 1.8 percent, decrease over the national average annual premium quoted in 2004. This decrease is a welcome relief after Insurance.com’s 2004 Auto Insurance Pricing Report highlighted a 6% increase in annual auto insurance quotes from 2003 to 2004.
The report highlights significant pricing variability across the country, making where you live a key factor in how much you’re going to pay for auto insurance. Despite the national decrease, more than 30 states actually saw modest increases to the average annual premium quoted.
So how can all consumers save even more money on their auto insurance?
Consider these basic tips:1. Shop around. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary quite dramatically (by hundreds of dollars) between different insurers. Make sure your current company is right for you. (or similar)
2. Increase your deductible. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible. However, if you do this, make sure you have the financial resources to handle the larger deductible when the time comes.
3. Inquire about multi-family/multi-policy discounts. A discount may apply to your auto insurance if you insure multiple cars under the same policy or with the same company. You also may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowners).
4. Keep an eye on your credit report. Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.
About this ReportInsurance.com’s 2005 First Half Auto Insurance Pricing Report highlights the average change in auto insurance premium quotes. The report compares the average auto insurance premium from the first quarter of 2005 against the average auto insurance premium for the full year 2004 in every state*.
The information comes from actual
auto insurance quotes consumers received from 12 of the nation’s leading auto insurance companies who participate on Insurance.com’s comparative auto insurance platform.
The quote information was collected from more than two million auto insurance quotes provided by Insurance.com to its customers in 2004 and over 1,000,000 insurance quotes collected in the first half of 2005.
*DisclaimerWhile the 2005 Auto Insurance Pricing 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 pricing activity of carriers that have participated in the ComparisonMarket auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, Massachusetts) and the aggregate profile of consumers who shop using the ComparisonMarket platform.
Please note that this description/explanation provided above is intended only as a guideline.
