Auto insurance premiums for the past two years have been steadily rising in most parts of the country. With the current trend not showing any signs of slowing or reversing, consumers should expect auto insurance coverage to further rise. Experts highly recommend drivers to scout for the cheapest premium rates to get the most out of their money.
Some states have seen dramatic increases in insurance fees, with Montana among the highest, registering hikes of as much as 12.9%, depending on the model of the vehicle. Some cars, most notably imported brands, are assessed with higher premiums due to their high risk ratings. Examples of vehicle models that insurers charge high auto insurance fees include, Kia Sportage, Kia Lotze, and Hyundai Sonata.
Some sectors are puzzled as to why insurers need to raise fees when car accident cases have declined substantially in recent years. Even drivers who have good to spotless driving records are getting assessed for more fees. One reason experts suggest as to why insurers behave this way is due to the rise in fraudulent claims, whereby insurance companies reimburse individuals who are not really qualified for benefits or claims. This had led to an increase in operating expenses for many auto insurers, which leaves them no choice but to hike fees to compensate for their losses. Another reason that exacerbates the problem industry insiders point out is that more and more people now are driving without insurance.
By being resourceful, there is still a possibility that one can still find cheap fees. Free auto insurance quotes are widely available today, and drivers are encouraged to take advantage of these types of offer to find the best deals. The US Senate on the other hand are conducting their own investigation against these recent practices in the insurance industry, with invitations being sent out to insurers requesting them to show up in hearings so that they could explain their side.
High unemployment and the weak business condition have made conditions worse for drivers, with many choosing not to sign up for auto insurance. According to a recent survey conducted by the Institute Research Council, 16% of drivers will not renew their auto coverage and will let their policies run out.
There are various ways to keep your insurance fees to a minimum. Number one is to scout for the cheapest auto insurance deals by taking advantage of the many free auto insurance quote offers available today. Another way to keep your premiums low is to choose bi-annual payment policies over monthly payment plans.
If you can’t afford to pay for full policies just opt for liability coverage. This way, you’d be able to decrease substantially your financial liability and accountability should you get into a car accident.