The median auto insurance rate, for a 6-month policy, is presently $702. This was reported by InsWeb, a premier insurance comparison provider online.
The rate has dipped by about 0.5% in the last six months.
The Insurance Provider has also provided statistics which break down the median rate data according to specific demographic categories. These categories include women, men, teens and senior citizens.
InsWeb said that women shell out a median auto insurance rate that is 5% lower compared to men. For a six-month policy, instead of $720, women pay about $683.
Drivers who are 19 years of age (and younger) shell out the highest median rate of about $1,300. This amount is more than two times that in the senior citizens category. Drivers aged 60 to 74 years old pay a median rate of $596, which is the lowest median rate reported by the Insurance Provider.
InsWeb Senior Vice President Brad Cooper said that drivers really have little control over what determines their auto insurance rate. Cooper urges drivers to be ‘proactive’ and willing to take helpful tips into consideration so that their premium costs might go down by as much as 5% to 10%.
The Insurance Provider has provided some insurance saving tips to those who pay over the national medium rate for auto insurance.
First, policyholders should capitalize on discounts. Many individuals make the cut for having a good driving record, being loyal to the insurer, or being a good student, having a ‘safe vehicle’. However, not many consumers take advantage of these deals. Making a simple phone call could be all it takes to generate savings, says the Insurance Provider.
Second, consumers should increase their deductibles, since higher deductibles translate into lower rates. Although this may cost more when having to come up with increased pocket costs, the savings generated in the long run will eventually pay off.
Third, clients are urged to insure their car along with their home with the same insurance provider. Availing of a ‘multi-line’ policy, will guarantee savings for both the home and auto policies.
Fourth, policyholders should pay their policies in lump sums. Since many insurance companies charge a ‘convenience fee’ for monthly installments, being able to pay with a single transaction could be a wise move. For those who have the financial capability, paying in a lump sum could generate $50 in savings annually.
Lastly, consumers are urged to shop around and compare rates on a regular basis. Some insurers specialize in providing services for different types of drivers and may charge more cost-effective rates.