Auto Insurance Rates Increasing Despite What Companies Advertise

A new Forbes article has highlighted the rapid increase in auto insurance rates, despite what companies’ commercials might advertise to customers. Rates have not only increased, but experts say costs will continue to rise over the next few years, which means customers may have to rely less on advertisements and decide who to work with and how to lower their premiums on their own.

Auto Insurance Premiums Continue to Increase

There are many commercials from the auto insurance industry advertising low-cost coverage. However, as rates increase for customers from all auto manufacturers, more insurance companies are unable to deliver on their promise for lower auto insurance rates.

A recent study from the Insurance Information Institute revealed that the auto insurance industry increased rates by an estimated 10 percent between 2008 and 2010. Additionally, drivers can expect to see rates increase another 4 percent this year, a whopping 31 percent increase since the start of the new millennium.

In other words, annual premiums jumped from an average of $690 to $900. With rates on the rise, customers will have to conduct their own rates research to ensure they find and keep low rates, and avoid the urge to succumb to company advertisements.

Shopping Around for Auto Insurance Discounts

A great way to  find low rates on auto insurance is to shop around for insurance companies. The good news is that auto insurance companies have made it easy for consumers by offering shop by comparison quotes–and often, the ability to purchase auto insurance via the internet.

This convenience helps compare the services of companies, explore their reputations and find the coverage and rates that best suit you.

However, shopping around is just one piece of the puzzle when it comes to finding lower rates. Another is to locate auto insurance discounts that can help lower the price of coverage further. Companies offer discounts for a range of categories from being a good driver to purchasing a policy online. Take time to look for these discounts, and shop around to ensure you pay the price you deserve for low-cost auto insurance.