Home | Motor Vehicles | Automobiles
June reaches an all-time low for car insurance over the last year, but consumers still need to be smart when attempting to get cheap car insurance as these rates are offset by other rising costs. But buyer beware as insurance rates are cyclical, and are not always improving as companies like Allstate and StateFarm hiked homeowners insurance rates 15% on average last month. Just because more people are shopping for cheap insurance, doesn?t mean that companies are clamoring to sell it to consumers. This rise in home insurance rates can easily offset other insurance savings if not carefully watched. As credit is tight and investments held by insurance companies have soured, that car insurance companies are working hard to save money too. This gives them some incentive to raise rates, and hope their competitors do the same. Insurance shoppers and companies alike are trying their hardest to save some cash. Nationally, June saw a 6% drop in insurance premiums, as compared to May. Massachusetts for example has seen a steady drop in rates since the Massachusetts government reduction on regulation. Even though the number of people seeking cheap car insurance is on the rise, car insurance rates are actually 12% higher in 2009 overall than they were in 2008 [RateWatch]. But comparing June of this year, to June of last year, and you will find that rates are at their lowest point in over a year [CarInsurance.com]. Several midwestern and southern states declined sharply this month, while others in the north and northeast have seen mild increases. However, rate variations fluctuated greatly within regions as well. The general rate increases are due to factors such as rising costs on claims payouts, and the rapidly growing number of insurance fraud cases. Otherwise honest drivers, desperate to rid themselves of their car payment, are doing all sorts of things to try to total their vehicle and make it appear accidental. Creative approaches that some have taken include: torching them, dumping them into waterways, hiring someone to steal them, and even dumping them in the direct path of hurricanes. Smaller insurance companies are often more flexible than some of the national companies in pricing. When you're armed with the right information, shopping for car insurance will go more smoothly and you'll be much likelier to find better rates than you would going into the situation completely uninformed. Understanding which factors come into play when an insurance company quotes you a car insurance policy is incredibly important. It?s no surprise that the number of people searching for car insurance is up 20% this year over last year, as switching ones car insurance is much easier than ridding themselves of a car payment. The biggest factor in car insurance costs is not in the general industry insurance rates, but in how well the consumer knows how to shop for it. There has not been a better time in 2009 for consumers to try to lock in lower insurance premiums.
Industry experts at Cheap Car Insurance (TM) have shown that knowing how to find, buy, and negotiate, and buy cheap car insurance, can lead to a savings of several hundreds of dollars annually.
Article Source: http://www.articledition.com
RSS Feeds