A recently conducted study revealed that car insurance rates increased in June compare to previous months. The average annual insurance rose to $1,884 last month after four straight months of declining rates. Compared to rates last October 2008, though, the latest figures are still better. The annual insurance cost back then was $1,982 for the entire nation.
Experts say that the economic recession is forcing more Americans to forgo their insurance coverage to save money. As a result, car insurance companies are slapping higher rates for irresponsible drivers. This has had a negative effect on many policyholders and motorists across the U.S.
Industry specialists also point out that the rates are not expected to change considerably by the second half of the year. Consumers have been reported to increase their deductibles significantly in hopes of reducing insurance costs. Experts also say that motorists can compare insurance quotes online and potentially save thousands of dollars. By investing just 30 to 60 minutes, consumers can find the insurance coverage best suited to their driving needs.
Specialists also warn drivers against common auto insurance myths that can spell the difference between saving money and spending thousands more.
1. “Full Coverage” works just like it sounds.
Drivers should immediately ask representatives from car insurance companies about this product if it also includes coverage for all members of the household or even for rental cars.
2. An accident is worse than a DUI on a driver’s record.
Contrary to popular belief, being involved in a DUI incident can severely affect insurance rates compared to being in an accident. If found guilty of DUI, drivers can face three to five years of high insurance costs since they will considered “high risk” by insurance firms.
3. Uninsured driver coverage is just a big waste of money
The possibility of getting involved in an accident with an uninsured driver is higher than it ever has with an estimated 15 to 25 percent of American motorists uninsured. Adding an additional option can help you save thousands of dollars in hospital or car body shop bills.
4. An accident that is the other driver’s fault cannot affect your rate.
Not being the cause of an accident won’t necessarily free a driver from higher rates. Companies check several reports before deciding on a rate to give consumers. Even minor accidents can influence a driver’s insurance rate.