Car insurance rates are 12% higher in 2009
Google and TNS Compete have released a study which suggests that approximately 90% of shoppers for cheap car insurance say that obtaining lower insurance rates is their main goal. Given the current economic climate, both individuals and insurance companies are looking for ways to cut back on costs.
Cheap Auto Insurance has stated that insurance rates are at the lowest points they have been during the twelve-month span, going by the comparision of June 2009 to June 2008. Just this summer, there was a documented 6% reduction in the cost of insurance policies as compared to the previous month.
While more consumers seek lower rates, RateWatch has observed that car insurance rates are in fact 12% higher in 2009 than they were previously in 2008, but not everywhere. Likewise, states such as Massachusetts have witnessed car insurance rates dropping by 8% in the past year. States such as Alabama, Mississippi, and Ohio have witnessed drastic rate declivities in the past month, however, others, like Nebraska and Delaware, have observed slight increases in their rates.
Simply because there is an increased demand for lower insurance rates does not necessarily guarantee that each and every insurance provider will offer them. Companies such as Allstate and StateFarm have already raised their rates for homeowners insurance by about 15% in the past few months, which help offset losses for issuing cheaper car insurance.
This price increase is not just limited to home insurance. Given that credit is tight for everyone, car insurance companies are also looking for ways that they can save a quick buck. One of the easiest ways to accommodate this challenge is to raise their premiums in the hopes that rival companies will follow their lead.
Although rates may be rising in general, it is still possible to find small and private-owned companies that are willing to negotiate prices much more than some of the larger, national corporations. According to the TNS/Google study, the number of customers looking for new car insurance premiums has increased 20% in the past year.