Auto Insurance Report: Prices Have Risen Steadily Since 2007

LOS ANGELES, Nov. 2, 2010 /PRNewswire/ -- A presentation delivered last month by the Insurance Information Institute's (III) senior vice president and chief economist, Steven N. Weisbart, indicates that the national averages for auto insurance prices and expenditures have been rising steadily since 2007. OnlineAutoInsurance.com recommends that, in this hardened market, consumers take the time to reevaluate their coverage costs and to see whether a more affordable carrier is out there.

According to Weisbart, consumers enjoyed a soft market between October 2005 and December 2007, and cheap car insurance premiums were consequently easier to find. At the end of that period, estimates for the national average private-passenger expenditure hit a five-year low, at $795.

But since then, the trend has been reversed. The III's estimates indicate that the national average expenditure has risen year-to-year for the past three years by 2.6 percent, 4.5 percent and 5 percent, respectively. According to III estimates, the average expenditure in 2010 is $895 — 12.5 percent higher than 2007's average.

Many state regulators have advised residents to get comparisons on identical coverage from at least three different carriers in order to make sure they attain the best rates for a policy. In addition to shopping around, consumers can also use the strategies listed in the "Nine Ways to Lower Your Auto Insurance Costs" tip sheet, posted by the Federal Citizen Information Center, in order to keep prices down.

Source: http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm

The presentation also points out the expected rapid growth of the elderly population as an issue of special concern for auto insurers. Along with teenagers, elderly drivers remain overly represented in involvement rates for fatal crashes. And, as the presentation indicates, the 65-and-older population in the United States is expected to grow by more than 14.5 million between 2010 and 2020. This, Weisbart says, is a trend to which insurers will have to adapt.

For resources on how to find a quality policy, consumers can go to http://www.onlineautoinsurance.com/cheap/ where visitors will be able to use the free quote-comparison generator.

SOURCE Online Auto Insurance, LLC

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