Be Prepared For an Increase in Car Insurance Premiums

By: Justin Vasquez, Car Insurance Analyst
CheaperCarInsurance.com

Car insurance premiums have increased over the past two years and are not expected to go down. In fact, you can be prepared to see an increase in your insurance rates, say car insurance experts. Now more than ever is the time to start getting free auto insurance quotes to find better rates.

The Office of National Statistics state they presume that insurance premiums will continue to rise. Some states, including Montana, have seen an increase by as much as 12% depending on the vehicle driven. Among the increase in premiums are certain models of vehicles that have gone up as well. These particular models will have higher insurance premiums this year due to expanded risk ratings:

• Kia Sportage
• Hyundai Sonata
• Kia Lotze

Imported cars are likely to see more increased premiums as the risk ratings are higher. The greatest way to make the best of these rate increases is to compare free auto insurance quotes from a variety of companies.

Who Will See the Increase in Premiums?

National U.S. averages show that 23 states have seen an increase in auto insurance premiums since January 2010. These states have seen the greatest increase so far:

• Montana with a 12.9% increase
• New Hampshire with a 9.9% increase
• Wyoming with an 8.2% increase

With accidents at their lowest in the past three years, it leaves many scratching their heads as to why premiums are at an incline.

Why Are Premiums Going Up?

So you are a good driver, have little to no points on your record, and over 25 years old but your premiums still went up? This is a sign of the times. There have been an increasing amount of claims being made and insurance fraud causing insurance companies to raise premiums for profit. The rising number of uninsured drivers on the road only makes matters worse. However, you can still find affordable rates by comparing free auto insurance quotes.

It can’t be predicted based off of 2 months that insurance rates will soar this year; although the trend from the past 2 years indicate that premiums will continue to sky rocket. Wise consumers are using free auto insurance quotes to find the best possible rates for sufficient coverage. In the mean time, the U.S. Senate is taking measures to try to stop this increase and calling for a financial breakdown of spending.

Other parts of the U.S. have actually seen a drop in premiums by as much as 6.3% thus far this year. Drivers in Vermont and Idaho currently have the lowest insurance premiums in the nation. For drivers among other states that are likely to see the increase, it’s strongly recommended to research free auto insurance quotes.

With the recession we are facing, the last thing we need is higher rates on our insurance premiums. More motorists are driving uninsured as a result. The Institute Research Council has indicated that approximately 16% of drivers will let their policies end without renewing it. However, this only has a more negative impact for insurance rates of those who are insured.

Using free auto insurance quotes provides access to find affordable coverage so that you can get car insurance at a reasonable price. Additionally, making two payments annually will save more on car insurance than paying every month. If money is tight and you no longer make payments on your vehicle, opt for just liability coverage. It is required by law to carry the minimum amount of coverage on auto insurance for each state. Getting in an accident without it could prove a much harder financial risk for the driver than paying for insurance coverage.

Posted: March 05, 2010