What to Expect In 2011 for Auto Insurance


Majority of the Americans will feel the wrath of increased auto insurance rates in 2011. There are several reasons why this would happen. The usual factors involved in the computation such as driving habits or insurance claims would still be there. In addition, the place of residence and the rising cost of hospitalization and other health services all contribute to price fluctuations.

People who enjoyed collecting tickets or disregarding traffic and road laws will be considered as high-risk drivers. This provokes the insurance company to increase the insurance rates in an attempt to level up the associated risks. Being labeled as a high-risk driver will not be an overnight issue because you will be dealing with it for at least three years. It is the insurer’s discretion to strike out this impression from their records. While you are at it, expect skyrocketing insurance premiums year after year.

Aside from the usual tickets and road violations, filing of insurance claims beyond what the insurer is expecting from you could raise the red flag that you are a threat to the bottom line, even if the claims filed were not your fault. It’s either you are a reckless driver or just totally unlucky. Whichever one it is, rates would still go up against you.

And just like the past years, the cost of medical services continues to rise. These two are allies, which mean that if one increases, the other usually follows. The coverage for bodily injuries is always part of the equation in auto insurance premiums. During an accident, if you or the other party needs medical attention, your insurer would have to spend money to cover the cost. Insurance companies are not charity institutions and part of their operation is to generate income. On the part of the insurer, it’s only appropriate to reflect these additional charges to your premiums to protect their interest.

Your geographic location also matters in premium computations. If your area has been categorized as a high-risk region, expect your rates to surge high. This is why it’s important to survey the area first if the incidence of thefts, vandalism, and insurance claims are relatively low. People change and so does your community. Insurance companies are tirelessly monitoring the risk levels of all the regions in the U.S. This means that your community might have undergone a major change, and the risk level could have shifted dramatically. The likelihood of filing a claim due to this factor is an enough indicator for a typical insurer to increase the premium prices.

Most people don’t like to change from one insurer to another. We call this loyalty and sometimes, it’s not even funny.  The problem arises when the policyholder is blinded that even the worst of all services are received, he still chooses to stick around due to loyalty factor. Anyone who’s in this shoe is welcoming needless risks of being manipulated by high premium rates, simply because the insurer thinks that they can get away with it. To find better deals, don’t forget to shop around and ask for insurance quotes from various companies. It takes only a few minutes and you will save hundreds of dollars in return plus less headaches.