Car Insurance Premiums Up in the First Quarter of the Year

By: Mike Silverstone, Car Insurance Analyst
CheaperCarInsurance.com

Car insurance rates are on the rise. In the first quarter of 2010, the cost of auto insurance went up 4.3%, making a total increase of 24% in just the past two years. The drastic increases are sparking concern among drivers across the country. With the economy still struggling, many people are finding that the cost of insurance is just getting too high and are looking for alternatives.

Just why are car insurance costs going up so rapidly? According to experts, the reasons are numerous. Some car insurance companies are hiking prices more than others, and recent crackdowns have exposed at least one auto insurance company that was overcharging clients.

Prices overall tend to go up as insurance companies try to regain their profits after a bad year. There are more and more drivers on the road without insurance, thanks to the higher cost, and that means those who are staying legal end up picking up the slack. It seems to be a vicious circle that is only getting worse . . . those who buy insurance will gradually find themselves unable to pay it as the prices continue to rise, causing ever increasing premiums.

However, this isn’t the only cause of higher car insurance costs. Keep in mind that there are specific things that can boost your particular insurance premiums.

Why Your Car Insurance is Higher

We all know that your car insurance premiums go up if you have had an accident or several and younger drivers are also going to have higher insurance rates. What you might not know, though, are the other factors that can affect how much you pay.

Here are a few factors that can affect your car insurance premiums:

• Owning a car that is a target for thieves
• Your location: each state has different rates
• Owning a car with high priced repair costs
• Owning a vehicle with a bad reputation for safety

There are many reasons for premiums to go up even more in individual cases and it pays to do some research before purchasing a vehicle to prevent future problems. For example, a little investigation would quickly turn up the fact that the Honda Odyssey LX, GMC Canyon WT and Dodge Caliber are the cheapest vehicles to insure right now, while a Porsche 911 Carrera GT2 is going to set you back nearly $3k in insurance alone.

Cars with high theft rates can boost premiums

It is definitely worth it to take the time and check out which cars are cheaper to insure, but that’s not the only way to save. Not all car insurance companies charge the same rates and some of the biggest names in the business are actually the ones that are charging higher than anyone else.

Shopping Around for Car Insurance Pays Off

Those savvy car owners who do their car insurance shopping online are the ones who benefit. By comparing prices online, you can get quick results and you’ll also find far more options than you would by simply going with the big name companies. Just what are the advantages of car insurance shopping online?

• Save time
• Find the absolute best insurance company as opposed to the best advertised
• Do your research whenever is convenient for you

With car insurance costs set to continue on their upward path, it makes sense to find the best insurer with the lowest prices. Taking your search online makes this far easier.

By combining research on which car to buy, along with online car insurance shopping, you’ll be able to get the best deals possible in this economy and beat out those ever increasing premiums.

Posted: April 19, 2010