Car Insurance Premiums: Why it’s Always Rising

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Car insurance has always been a hot topic, especially for those wanting to stretch their dollars. Renewal times are dreadful times because no one really knows what the next premiums will be. However, if you have made no claims in the previous years, you can expect to receive a “friendly” rate.

Comparing car insurance to reduce premiums

The car insurance industry is such a competitive market that everyone in the field tries to outwit the other, which means your options (and future) not only depend on a single insurance provider. Each insurance provider will do everything to get the contract, especially if you are a less risky driver. However, you might also be aware with regard to the rising insurance costs. This story is no longer new because of the mounting fraudulent cases, pressure from injury lawyers, and other variables.

Using the internet to find better deals and compare insurance quotes

Interestingly, many people are still not taking the advantage of using the Internet to find better deals from multiple insurance companies. The aggressiveness of the campaigns to introduce this new medium hasn’t been realized to its full capacity yet. Experts believe that if all customers would use comparison-shopping websites, they will be able to save a significant amount of money and enjoy the benefits unique to online purchases.

In general, if your car has a high safety rating the chances of getting cheaper premiums are even higher. The type, model or make your car will influence your premiums. If you want to end up with cheap insurance quotes, make sure that your car has safety features or anti-theft devices installed on it. High tech gadgets aimed to make life safer or risk reduction will always merit some price cuts. Installation of additional side air bags and seat belts fill to curb down your insurance premiums as well.

The issue of the rising fraudulent claims over the years has prevented many insurance companies from lowering down their premiums significantly. You may have heard reports of people filing fake claims and enunciating false accidents. Some of these people are just victims of a larger syndicate group, promising them to earn a fair share of the proceeds. To add insult to the injury, companies that seem legitimate are created to support these maligned practices. The government is already aware of such practices and has been in a continued effort to detect and dismantle these organizations.

The result is an increase in insurance prices. Insurance companies are not charitable institutions and some types of losses will have to be covered. In October 2010, a significant increase of 29.9% was attributed due to the points mentioned above.

Customers would need to realize that understanding their needs would help them save even more. Instead of spending unnecessarily on a comprehensive or collision coverage with a 10-year-old vehicle, replacing it with other types of coverage does the trick. For those who are unfamiliar with the nitty-gritty of the insurance industry are encouraged to talk to their insurance agents or companies about which deals or discounts they could qualify.