Find The Cheapest Car Insurance And Get Low Rates Online Today
Rates Are Getting Cheaper
According to one of the larger online insurance quote providers, online rates are indeed getting cheaper - by a significant amount. Data tracked by insurance.com each month shows that the average rate quoted online has dropped by $96 since November 2008. Just since the data compiled in March 2009, rates dropped an additional .4 percent in April.
These results are significant and reflect trends we watch through other data providers. Insurance.com does their analysis based on a survey of 3,000 quotes returned on their site each month. Other notable statistics from their survey was that the average customer in April saved $548 over their existing yearly premium. Over 21% saved over $800 in annual premium. We have seen similar savings from other providers across the internet. So if you really want to find cheaper car insurance, perhaps the best thing you can do is get an online quote.
States With The Lowest Rates
According to the Insurance Information Institute (iii.org) for the most recent year data is available (2006), North Dakota led with the cheapest rates across the country with an average rate of $530. Following closely behind were Iowa and South Dakota, each staying below the $560 average premium mark. The insurance.com study from April 2009 shows Wisconsin and Iowa leading the way with the lowest rates. Regardless, people in middle America seem to get lower rates than other areas of the Country, particularly the Upper Midwest region.
The highest priced states for auto insurance in the iii.org study were New Jersey and Louisiana followed closely by New York and Florida. Drivers in these states paid an average of more than $1600 on car insurance in 2006.
More Uninsured Drivers
We continue to find stories and statistics showing an increasing number of uninsured drivers during the current economic crunch - especially high risk drivers with higher rates. Although this is understandable, it does show that regardless of compulsory insurance laws across the country that auto insurance is one of the first things to go when personal budgets get squeezed.
This is unfortunate because it doesn't result in a lower number of miles driven or accidents. The same number of people are on the road regardless of whether a sizable number let their insurance coverage lapse. Even more troubling is that it's the higher risk driver who is forgoing coverage. What does that mean to you? Probably higher rates down the road. Losses where an at-fault driver does not carry insurance will be paid by the insurers through your uninsured motorist coverage. So insurers will more or less be paying out the same amount in claims, with a corresponding smaller pool of policyholders paying premiums.
Don't forget that it's generally against the law to operate an uninsured motor vehicle. At least take out the minimum liability coverage and shop for rates online in order to compare the cheapest quotes from various carriers. Car insurance should be one of the last things you live without in difficult times.
Huge Rate Increase in New Jersey
Those of you that are Allstate customers in New Jersey should be prepared for a significant rate increase upon your renewal. On May 7, 2009, Allstate announced that it would increase rates for policyholders in the Garden State by 8.9% across the board. According to the Insurance Information Institute data, New Jersey already led the country with the highest motor vehicle premiums before this increase. New Jersey suffers from extensive rate regulation that was designed to lower rates but to date has solidified it as being the most expensive state for auto insurance in America. Allstate originally asked for a 15% rate increase which was rejected by New Jersey regulators.
AIG Sells 21st Century Auto Insurance
Over the past several years 21st Century Auto Insurance has taken a more prominent role in online, TV and direct advertising. 21st had been owned by troubled AIG. As a part of AIG's liquidation plan for certain assets, the auto insurance business of 21st Century has been sold to Zurich insurance. 21st reported about $3 of premiums collected in 2008 with a majority of its sales being direct purchases rather than through an independent agent. Policyholders are being assured that the transition will be seamless and not recognizable.