If you feel like you're paying more for automobile insurance each year, it's because you are.
Experts attribute the escalating rates to a range of conditions. Some of these include rising medical costs, increases in the cost of car repairs, a decline in the return insurers earn on their investments and sharp price competition that held down rates for several years.
Regardless of the reason, companies across the nation are seeking double-digit auto insurance rate increases in many states. According to an industry association, the cost of auto insurance is expected to rise 8.5 percent this year and another 9 percent in 2022.
These increases come years after many state legislatures passed laws promoted by the insurance industry that were supposed to reduce insurance rates. Most of these laws make it harder for consumers to be compensated for their injuries or property damages.
How much you pay for automobile insurance may be influenced by your driving record, age, location, the make and model of the car, amount of coverage, the number of miles driven annually and even your credit rating. If you feel you are currently paying too much for your auto insurance, you may want to review your policy and talk with your insurance agent about ways to lower your premiums.
The Insurance Information Institute offers the following tips that may help reduce the amount you pay for auto insurance:
Compare rates, just like you would compare clinics when looking for a back surgeon.
Getting price quotes from several insurance companies can help you get the lowest price, but it is also a good idea to check on the companies before signing a policy. Ask friends or relatives to recommend agents that they trust and begin your search with those names.
Ask about all discounts offered.
Insurance companies offer discounts for good driving records, safety features on your car and having more than one vehicle insured by the same agent or company. Ask your agent about all of the discounts offered.
Raise your deductible.
In most cases, raising your collision deductible from $250 to $500 can reduce your overall insurance costs by 15 percent to 30 percent.
Drivers with no accidents or tickets on their record usually receive a discount on their insurance premiums. You may also want to check with your agent about any discounts offered for completing a defensive driving course.
Use the same insurer for both your auto and homeowners insurances.
Many insurers offer discounts if you carry multiple types of insurance, such as auto and homeowners.
By doing a little research and reviewing your existing policy; you may be able to find ways to reduce the cost of your automobile insurance.
If you are like the vast majority of people, your answer is no. The average person doesn't shop around to find the lowest auto insurance rate because they are simply too lazy. There's an even bigger group of folks that probably don't even know they can do it. Even though most people think they know how to do it, there's actually a very simple and easy way to quickly save a ton of money on your car insurance.
What most people don't know is that when it comes to finding a lower rate, shopping around is infinitely more important than going with the first policy that emerges from their car insurance companies purse. This is because auto insurance companies spend millions each year sending out junk mail to people who are looking for discounts. Most people get this junk mail because they are looking for cheaper rates, not better rates, so it's only logical that the insurance companies would play up this aspect of their marketing campaigns.
The problem with this however is that people end up wasting an enormous amount of their time and energy getting information from these companies. You see, what these companies are really interested in is your current level of auto insurance. If you currently have coverage and are happy with it, then most auto insurance companies won't want to give you anything that is cheaper. However, if you haven't had a wreck or tickets in a long time, then they will be much more inclined to give you a discount. So, instead of wasting your time and energy with auto insurance company after an auto insurance company, spend your time doing what you need to do to make sure you are always getting the best deal possible.