Drivers Have Seen Decrease in Low Car Insurance Rates Over 6 Months
By: Jaime Lethrop, Car Insurance Guru
CheaperCarInsurance.com
Despite being in troubling financial times, drivers have something to smile about, it seems. Recent studies from InsWeb, an online insurance comparison provider, show that low car insurance rates went down an average of .5% over the past 6 months. The national average for a car insurance policy is now $702 for 6 months.
In addition to this drop, the study showed that women pay about 5% less than men, who pay on average $720 for a policy. Women pay an average of $682 for the same policy. InsWeb discovered that drivers under 19 pay the highest rates, at nearly double that $702 average. Drivers aged 60 to 74 pay the lowest rates, at $596 for 6 months of low car insurance rates.
While the study didn’t specifically identify the causes of the low car insurance rates, some of the possible reasons rates have gone down are:
- Reduction in auto insurance fraud
- More competition among car insurers
- Online policy management reducing overhead for insurance companies
- Drivers understanding how to save on car insurance
Fraud
While car insurance fraud has been on the rise over the past few years, thanks to a bad economy, there have been several initiatives in various states to increase punishment for fraud that may in fact be helping fraud rates decline and low car insurance rates.
In New York, for example, there are efforts currently underway to pass the Cheaper Car Insurance Act of 2010, which would make consequences for car insurance fraud up to $100,000 in fines and several years in prison. Lawmakers believe this will be a deterrent from criminals attempting the fraud.
As car insurance fraud rates go down, insurance companies are able to lower car insurance rates for policyholders. They lose less money to fraud and can pass the savings on to consumers. It’s a win-win situation.
Competition
There are dozens, if not hundreds, of auto insurance companies today, and they all want your business. Competition, it turns out, is good for the consumer, as it allows comparison shopping and price wars.
While auto insurance rates tend to be similar among several of the top insurers, there are deals to be had, especially for specialty services, like multiple policies, high risk insurance or teen car insurance policies. By getting comparison quotes, a driver can easily see who offers the best deal on low car insurance rates.
Taking it Online
Every car insurance company now has a website, and most offer the ability to manage your policy online. Offering more services online for customers lowers an auto insurance company’s overhead, and it can pass these savings on to the customer.
Many insurers are providing online (or even cell phone applications) access to filing claims. By doing so, insurers can cut costs on telephone support and still process claims quickly.
Saving Big
Today’s car insurance shoppers are more savvy than ever before. They know to go online to sites like CheaperCarInsurance.com to get quotes from multiple insurance companies to get the best rate, and they know about discounts.
Discounts are some of the best ways to cut costs on car insurance. Qualifying as a good driver or good student can net 10 to 20% savings, and having anti lock brakes and airbags can offer additional savings. For policyholders who have multiple types of insurance policies with a single company, they may also realize savings on their auto insurance as a result.
Are You Paying Less for Low Car Insurance Rates?
If your rate hasn’t gone down in years, it may be time to find a new car insurance company. Get quotes from multiple insurers to see if you could save hundreds on your auto insurance policy.
Posted: February 21, 2010
