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Compare auto insurance to get low rates –it’s a competitive market
Compare auto insurance quotes online in this very competitive insurance market. This is a good market for customers since this a soft market still continuing in the insurance industry.

As per the latest research even the Insurance Information Institute confirms that in a highly competitive auto insurance marketplace is making coverage more widely available and affordable for all drivers. This is as per the news given on 30th January 2012, according to the Insurance Information Institute (I.I.I.).
“The I.I.I. vigorously contested a Consumer Federation of America (CFA) study which asserted that insurance rating practices were driving up auto insurance prices for low- and moderate-income households.

The I.I.I. pointed out that the CFA analysis came only weeks after another organization—the National Association of Insurance Commissioners (NAIC)—representing the nation’s insurance commissioners found that the typical U.S. motorist had seen his or her auto insurance expenditures drop every year between 2005 and 2009.

“Auto insurance provides important, cost-effective financial protection to millions of Americans, and most drivers have dozens of auto insurers constantly competing for their business,” said Dr. Robert Hartwig, CPCU, president of the I.I.I. and an economist.

The NAIC determined that drivers paid $785, on average, to insure a private-passenger vehicle in the U.S. in 2009, four dollars less than in 2008. The downward trend, which involved the purchase of a policy that included liability as well as optional comprehensive and collision coverages, began in 2005 ($832 per vehicle, per year), and continued into 2006 ($817), 2007 ($797), and 2008 ($789). The NAIC report was released publicly on January 17, 2012, and is the association’s most recent assessment of the U.S. auto insurance marketplace.

Citing other signs of a healthy insurance marketplace, the I.I.I. noted that the percentage of median family income spent on auto insurance has dropped sharply in recent years, as has the percentage of drivers who pay more for their auto insurance coverage through their state’s assigned-risk pools, also known as the residual market.

The ratio of auto insurance costs to family income, an index developed by Risk Information, Inc., publisher of Auto Insurance Report, dropped from 1.27 percent in 2004 to 1.05 percent in 2009, the most recent year for which this data is available. In addition, between 1994 and 2004, the percentage of drivers participating in residual markets declined from about 4 percent to 1.6 percent, a statistic cited in the CFA study. But the CFA did not note that the latter statistic meant these drivers would be paying less for auto insurance when they left their state’s assigned-risk pools, where the riskiest drivers congregate, and re-entered the so-called voluntary market.

State-sponsored efforts to provide income-eligible persons with liability insurance protection at affordable rates have not gained a significant following. California’s state-sponsored Low Cost Automobile Insurance Program (CLCA), for instance, had fewer than 12,000 policies in effect as of year-end 2011 even though the state is home to more than 30 million people. The CLCA was created in 1999 but the private-sector appears to have been able to meet the CLCA’s public policy goal more effectively, according to Dr. Hartwig.

“The most effective way to lower the price of auto insurance is reduce the costs of underlying factors, such as the cost of medical care and auto repair as well the impact of insurance fraud ,which levies a tax on drivers, particularly in states like Florida, Michigan, New Jersey and New York,” Dr. Hartwig said. “Changing rating factors that have been shown to accurately project future losses will only distort prices and result in good drivers subsidizing riskier ones.”

Dr. Hartwig explained that auto insurance policyholders also have a degree of control over the price they pay for insurance coverage because the premium is determined in part by their driving record, the type of car they drive, and the type and amount of coverage they purchase. Moreover, state insurance regulators already review and approve the various rating criteria (e.g., a driver’s age, gender and miles driven each year) auto insurers are allowed to employ when pricing a prospective or current policyholder’s policy.

“As anyone who watches television commercials knows, auto insurance coverage is widely available in every U.S. state,” said Dr. Hartwig. “And competitive marketplaces drive down prices. Car owners have a multitude of choices when it comes to buying coverage as well as a variety of ways to obtain it: through an agent, over the phone or online. Drivers should shop around if they feel as though their current auto insurer is not meeting their needs, or charging too high a price,” he added.

“The other thing U.S. vehicle owners should keep in mind is that property/casualty insurers, unlike some other sectors of the financial services industry, remain financially strong. Auto insurers not only recruited new policyholders and renewed existing ones but also paid claims and offered new products and services throughout the most severe economic downturn since the Great Depression,” Dr. Hartwig concluded.

The above report and press release clearly outlines that as a customer you need not worry at all and should be only comparing auto insurance quotes to help you find the lowest car insurance rates and best car insurance coverage or options for you and your family.

Enjoy your car insurance comparisons here. Compare auto insurance quotes and get low auto insurance rates today.

Thanks.
Kamlesh

Compare auto insurance

Compare auto insurance

AppId is over the quota AppId is over the quota

Almost every driver can qualify for an auto insurance discount with the right insurance company. Auto insurers began offering discounts as a way to shape behavior in an effort to reduce risks. Since certain drivers are drawn to specific discounts, the insurance industry noticed that large pools of drivers would start to form if a certain discount was offered. Compare auto insurance  companies with our FREE car insurance comparison tool!

When an insurance company can underwrite large numbers of safe drivers, their incomes rise and the annual number of claims decreases. When a driver shops around for the right auto insruance policy, the number of discounts offered by each insurance company comes to light.

When insurance companies calculate the cost of insuring certain vehicles, there is very little guesswork involved. Actual accident statistics are tracked by state insurance commissions. Police reports are used to gather accident information while repair shops provide actual cost data. Drivers can visit the website of the Insurance Institute for Highway Safety to determine the least expensive vehicles to insure if a new car purchase is on the horizon.

Make and model – When the cost of repairing the vehicle is known, the insurance company assigns a cost of repair. Over time, costs will moderate for popular vehicles because parts are more readily available. Certain cars are very expensive to insure because of repair and replacement costs.Safety features – Air bags, automatic seat belts and anti-lock brakes reduce the risk of injury for passengers involved in a car accident. All of these features are revealed in the VIN number on the vehicle when the insurance company begins to formulate a quote. Most safety features are factory-installed.Security devices – Electric locks and a factory-installed car alarm ensure that the vehicle is secured when the driver is not present. These devices will be indicated in the VIN, but the driver is wise to mention these features when asking for a quote.Anti-theft apparatus – Kill switches, steering wheel locks and tire locks are excellent theft deterrents. In areas where auto theft occurs often, the insurance company may require that an anti-theft apparatus is installed on the vehicle. Reducing the risk of theft saves money for the car insurance company.

Reducing risk of loss is the most important action a driver can take to receive lower car insurance premiums from the insurance companies. Many drivers are surprised to find that mature habits in other areas of life are rewarded by insurance companies. Most of the following discounts are awarded to responsible individuals who ask for them.

Clean driving record – When a driver does not incur a moving violation or speeding ticket for three or more consecutive years, the insurance company lowers the auto insurance premium. Safe driving is one of the most important factors for retaining low car insurance rates.Good credit score – Financial habits reflect an individual’s ability to handle responsibility in every area of life. If the credit score is low, the insurance companies will charge a higher premium for the individuals listed on the auto policy.Senior citizen – People older than 55 and younger than 80 years of age are considered more mature when their driving record remains free from violations. After the age of 80, some insurance companies will require reflex evaluations for their older drivers to ascertain their ability to drive safely.Good student – Young drivers with excellent school grades are rewarded with lower car insurance premiums because of their disciplined approach to school. Students with average grades are not charged higher than standard rates, but this discount is not given.Professional association – Corporate discounts are negotiated by some very large companies. Professional groups, such as physicians, accountants and attorneys, are offered lower rates because the insurance industry perceives drivers in these professions as more responsible.Low mileage – Every insurance company has a different idea of “low mileage” when it comes to driving a vehicle in a given month. Some companies offer discounts if the car is driven fewer than 100 miles in a month, but each insurer is different. The best way to find out is to inquire about this discount if the vehicle is not driven every day.Driver’s training – One day spend in a defensive driving course can reduce the annual auto insurance premium by as much as 30 percent. Every company is different, so the driver must shop around and then follow through and take the course. Other types of training, such as inclement weather training, will reduce rates because the risk of accidents is lowered.

Insurance companies offer various types of discounts that are related to their loyal customers. Each insurer will offer a variation on the following discounts, and the best way to find them is to ask during the quote process. All policy documentation must be verified to ensure that each promised discount was awarded.

Multi-policy – If the driver also has a home, purchasing both insurance policies from the same insurance company can save a great deal on both premiums. Life insurance policies will be discounted by most insurers when the car and home insurance policies are with the same insurer. The actual discount percentage varies by insurer.Multi-vehicle – One auto insurance policy with multiple cars listed in the coverage will be less expensive than separate policies for each vehicle. This method is especially important when teen drivers are added to the family insurance policy. Mature drivers can offset the cost of insuring a teen.Annual payment – Administrative costs are lower when one payment is made each year. Insurance companies will reduce the annual premium if they receive all of the money at the beginning of the policy year. Some insurers will allow policyholders to make quarterly payments, which are less expensive than twelve monthly payments.Deductible – Carrying a higher deductible on an auto insurance policy is one method of lowering the annual premium. Care must be exercised when setting the deductible amounts to avoid causing a financial hardship if an accident occurs. The amount of the deductible should be kept in a savings account.

When drivers shop around for auto insurance, the goal should be to acquire sufficient coverage against loss at an affordable price. A quote that is ridiculously low compared to the other quotes acquired should be evaluated closely. If an accident occurs, the coverage must cover the loss.

Drivers that cut corners on each of the major subcomponents, such as collision, comprehensive and liability might save money on the annual auto insurance premiums but will not be sufficiently insured. A prudent approach is to set appropriate coverage levels and ask for every possible discount for which the driver might qualify. Compare auto insurance  with our FREE comparison search below, gauranteed low auto insurance.

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Compare auto insurance

Janet Jackson: How are zip codes used in calculating auto insurance quotes?

Response: Comparing auto insurance quotes is becoming very easy as time passes and this is the truth. Machines are soon replacing the humans and the insurance agents and it is time the insurance agents also accept this reality. Auto insurance rates are based on the geographical locations since the car insurance companies develop their data base on the geographical location. The auto insurance claims for the area and premium generated in the area will form the base of the base premium for that area. Now zip codes are associated with the geographical area and so as soon as the zip code is filled in the base premium or the base rate as the auto insurers or underwriters call it is decided. To this base rate is the loading of the type of car, the drivers, the driver history and other factors. Dedeuction of the discounts is than done and finally the final auto insurance quote is arrived at.

Most online car insurance rate calculators require that consumers enter the personal, vehicle and driver record details. Once this is filled than the online calculators will just be produce the quote and with the advanced technology you will get the quotes from about 5-6 auto insurance quotes. Check it out yourself right here. Compare auto insurance quote now and bank in your profits in terms of savings.

Compare auto insurance

Compare auto insurance

Eben Pagan (New York): My auto insurance policy is going to be renewed by the end of this month and I live in New York. Can you please tell me about No fault car insurance in New York?

Response: Eben, I know you will find this odd, but the best way to get the best auto insurance rates is to compare auto insurance quote online and am sure you get the best deals. Online auto insurance is competitive and they offer you the latest discounts and best rates since they know that there are already a couple of  insurers offering their rates on the same page.

Let me shate another news with you which you might have read regarding No fault car insurance in New York.

New York’s auto insurers saw their typical no-fault payment for the medical care of accident victims rise by 56 percent to $8,748 per claim in the second quarter of 2009. This represents a dramatic increase from late 2004, when the average no-fault payment stood at $5,615 per claim, according to an Insurance Information Institute (I.I.I.) analysis.

The insurance industry, the New York State Insurance Department’s (NYSID) Frauds Bureau, the National Insurance Crime Bureau and law enforcement agencies continue to investigate suspicious claims vigorously, according to Dr. Robert Hartwig, the I.I.I. president and an economist. Yet loopholes in the no-fault system make it particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.

“In less than five years, New York’s auto insurers have seen an extraordinary 56 percent increase in the average cost of no-fault claims, to a great extent the result of abuse and, sometimes, outright fraud in the system,”

“The costs of fraud and abuse of the state’s no-fault system ultimately are borne by New York’s honest policyholders. New York’s no-fault claim costs are now the second highest in the country and are 111 percent higher than the U.S. average of $4,152.”

The reason for letting you know all these details is to explain why the auto insurance rates are likely to rise. This is because the insurance companies base their auto insurance rates on their expenses and no fault claims expenses are a part of the expenses which all the insurance companies have to share and pay for.

The insurance companies offer a higher discount online since they save their operating cost. When you compare car insurance quote online make sure that you are also comparing your coverages and the discounts offered. I am sure you will find a good quote here.

Thanks.

Kamlesh

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