Car Insurance Rates on the Rise – How to Fight It

Some of the hippest commercials on television today are slick, entertaining ads from the largest car insurance companies. Geico’s Caveman campaign even developed a life of its own when the main character was featured in a short-lived comedy show in prime time. All of these commercials have the same message: Car insurance is less expensive with their company. The truth, however, is that as these TV characters have become more popular with customersĀ  than the actual savings consumers get. Insurance rates have gone up almost 30% since 2000, andĀ  there’s no guarantee that rates won’t continue to rise over the next few years.

Insurance Costs Rise with Medical Costs

One of the main reasons insurance rates are rising so quickly is that medical costs are rising quickly. Insurance companies have to be prepared to cover medical bills for people who are injured in car accidents. That means that they have to charge more up-front from all of their customers so that they will be ready when the claims begin to come in. Insurers also have to cover repair and replacement of the vehicles that are damaged in accidents, which can be far more expensive in these days of computerized engines and hybrid battery systems.

Gain More Cost Control with Pay-as-you-Drive Policies

One way drivers can play a more active part in determining how much they pay for car insurance is through a pay-as-you-drive insurance policy. The way it works is the car insurance company sends you a small electronic device that tracks how many miles you drive. Unlike a traditional policy that charges you based on an average number of miles driven annually, you are only charged for the number of miles that are actually recorded through your tracking device. How often and how far you drive is entirely up to you, but the less you drive the less you will pay for car insurance.

Look for Special Discounts

Every car insurance company offers special discounts for customers who qualify. Be sure to check with your agent to find out if there are any discounts you could use to cut your insurance bill down to size. Typical discounts include savings for attending driving school, being a homeowner, installing safety equipment on your vehicle, installing anti-theft equipment, or carrying more than one type of insurance policy through the same carrier. Each insurance company has different restrictions and offers different discounts, however, so you might need to shop around to find the best policy to fit your situation.

Take Advantage of Online Quote Comparisons

Another way to fight rising car insurance rates is to do your own rate comparisons through an online quote site. These sites allow you to enter your personal information into a single form that is then distributed to the insurance companies you would like to know more about. You receive a report from each of the companies you selected, which allows you to compare their prices and policies side by side on your computer screen. Online quotes give you a good overview of the rates you should expect based on your particular demographics. Once you have done the research, you can approach an insurance company as an informed consumer.

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