Americans Finding Affordable Auto Insurance in Highly Competitive Markets
FindingÂ affordable auto insuranceÂ has become easier for U.S. consumers, according to a recent report from the Insurance Information Institute (I.I.I.). Insurance companies that are fighting for customers are lowering their rates in droves, which benefits their prospective customers.
With rates continuing to drop, there’s no doubt that drivers have a wider pick of insurance deals to choose from. But the best way to ensureÂ auto insuranceÂ quotesÂ are affordable and accompanied by top-notch services, is for consumers to shop around.
Affordable Auto Insurance: The Side Effect of High Competition
Gaining access to affordable auto insurance is something any person who pays for coverage will tell you they want. So the news Â of drivers benefiting from lower-cost coverage thanks to a highly competitive auto insurance market is sure to be a welcomed surprise.
According to information the I.I.I. pulled from National Association of Insurance Commissioners (NAIC), the typical U.S. Motorist saw his or her annual auto insurance expenditures drop to $791.22 in 2010, which represented a more than 3-percent reduction from expenditures in 2006.
The primary reason for this drop was increased competition in auto insurance marketplaces. While rates are determined by looking at applicants’ driving records, the types of cars they drive and even their education and occupation,Â auto insurance companiesÂ also factor in what others are charging.
â€œAuto insurance provides important, cost-effective financial protection to millions of Americans, and most drivers have dozens of auto insurers constantly competing for their business,â€ Dr. Steven Weisbart, senior vice president and the I.I.I.’s chief economist noted in a statement. â€œThe price is risk-based, and always will be.â€
Benefits of Shopping for Auto Insurance Quotes
With the knowledge that many auto insurance companies lower their rates to remain competitive, it doesn’t hurt to take advantage of this aspect of the business by shopping around for auto insurance quotes. Here are just a few benefits of shopping around for coverage:
- Finding the lowest rate:Â Looking for coverage with more than one insurer helps you find the most affordable auto insurance available in the marketplace.
- Gauging insurers’ reputations:Â While looking for great rates, you can also research each insurer’s reputation to ensure you’re going to work with a company that is known for good customer service, handles claims processing well and offers other benefits you’re looking for.
- Locating discounts:Â Various insurance companies offer auto insurance discounts that help further lower the cost of coverage. Shopping around helps you locate those discounts.
A competitive market is always beneficial to consumers who are looking for ways to lower costs on their purchases. With the competition in the auto insurance market being substantial, there’s no better time to begin shopping around for affordable auto insurance.
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