Auto Insurance Rates On the Rise

Released on: August 12, 2009, 6:12 am
Author: InsuranceAgents.com
Industry: Automotive

It may seem impossible to believe, but auto insurance can still be affordable. Even though rates are rising in most areas of the country, drivers don’t have to let their insurance policies lapse in order to save money, according to a recently published article on InsuranceAgents.com.

Auto insurance rates rose 3 percent last year. In 2009, they’re expected to rise another 4 percent, at least. In some areas (depending on the carrier), they’re expected to rise even more. And with many U.S. households suffering from grossly reduced incomes, many drivers may be led to believe that affordable auto insurance is a myth. But it may just require a little digging up to find.

According to the InsuranceAgents.com article, “Several Tips to Keep Auto Insurance Premiums Low as Rates Rise,” drivers who want to keep their auto insurance coverage need to begin their search by figuring out what auto insurance quotes are in their price range.

“The first step in beginning their search for low auto insurance quotes is to figure out exactly how much they are willing to spend on auto insurance. In order to do this, they will have to sit down and budget their expenses,” according to the article.

This means having to calculate finances, like one’s income, savings, expenditures, bills and debts, and miscellaneous expenses.

When trying to save money, the last thing one should do is drop their insurance policies to simply save money in the short term. This puts the former policyholders at risk for a huge financial loss, and too often results in them losing thousands of dollars in even minor events (like a fender bender in a car accident, for example). Not to mention, driving without auto insurance is against the law, in most states.

InsuranceAgents.com suggests other ways to save money on auto insurance, including raising the policy’s deductible, asking for discounts, driving less, practicing safe driving, maintaining good credit, searching for auto insurance quotes regularly, and also, figuring out the right amount of coverage (under-insuring and over-insuring can both cost you too much money).

“[T]he key to getting the most out of savings and finding the best coverage for a vehicle is by knowing how auto insurance coverage plans works. And while it is tempting to get complete auto insurance coverage for a vehicle, potential policyholders should take time to think about coverage.”

Staff Contribution: Meha Ahmad

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