For the Lowest Auto Insurance Rates, Go Insurance Rates

A new study has found that no-fault auto insurance is not as beneficial as it may seem. According to the study conducted by RAND Corp., a nonprofit research organization, instead of lowering costs as it's intended, no-fault insurance actually increases costs due to medical claims that are rising.

What is No-Fault Insurance?

No-fault auto insurance is a type of auto insurance that allows both parties in a collision to avoid being declared at fault. Instead, both parties are considered equally liable for the accident. The idea is to save claims costs by restricting lawsuits against other drivers.

This type of insurance has three components:

• A restriction on the right to sue other drivers for being at fault for an accident
• The inability to receive payment for pain and suffering or other non-economic damages
• Mandatory insurance so that those involved in the accident can recover economic losses - including medical costs - from their own insurance company

To date, slightly more than a dozen states offer this type of insurance.

Details from the Study

According to the study, while injury costs under with no-fault insurance were 12 percent higher than standard insurance in 1987, by 2004, the injury costs were 73 percent more under these plans. As a result, the intention of insurance has been lost in the increasing costs associated with injury care.

Specifically, those who seek medical assistance under the no-fault policies tend to get more specialized treatment since they can, which ultimately costs more. So now, those who were anticipating lower premium costs with this type of auto insurance are seeing increases because the claims costs are so high.

Do you have no-fault insurance? Do you pay more in premium costs?

Five years ago, Internet sales only accounted for 4 percent of all auto insurance purchasing transactions.

Now, shopping for auto insurance online accounts for30 percent of all the policies sold.According to ComScore, a digital research company, a 2009 surveyindicated that of those shopping for auto insurance, 63 percent of them went online to secure quotes.Although you may be wondering about this industry growth spurt, it just shows that more people are relying on the web for finding affordable auto insurance .

Shopping Smart

Shopping fantasies for nearly any item can beintoxicating andthere are certain attributes of doing the deed online that are perfectly suited to the auto insurance industry. Since phone calls are so 1999, the Internet is the best tool for buying auto insurance because of:

• Comparison Shopping: Consumers need to make thousands of decisions and the web is a great educational device for the process. Comparison shopping is the act of weighing options so you can make the best purchasing decision, and if done correctly you cansave money. When it comes to auto insurance, the Internet is the best resource for gathering and presenting online car insurance options quickly and easily.
• Saving Time: Americans are noted multi-taskers who constantly try to fit 26 hours of tasks into a 24-hour day. No one can argue that researching auto insurance online is a huge time saver. There are portals dedicated specifically to the task of online car insurance and nearly every insurance provider has their own site. Online searches take seconds compared to the time suck of making individual phone calls, so why waste another moment.
• Saving Money: Every insurance provider is vying for your policy dollar. Utilizing the web to shop for auto insurance can provide price quotes with a click. If you don't like the price of the first option, you can immediately find another choice that fits into your budget.
• Nearly Unlimited Options: Since some people like chocolate ice cream while others prefer vanilla, ice cream parlors have flavor for nearly every palate. The web does the same thing for car insurance shoppers by providing you with an endless array of providers and insurance coverage levels.
• Flexibility: Not everyone works 9-5 and they need to make their decisions at off hours. By shopping for auto insurance online, you can get the answers you seek based on your schedule as most online quote software works 24/7.
• Second Opinion: For some, buyer's remorse is an affliction that accompanies every purchase they make. If you feel like you need an outside opinion to back up your choice, links sent through IM and email to your lifeline of choice, can provide you with instant feedback regarding competitive auto insurance policies.

By following some rules to ensure both safety and accuracy of your quote, using the web to purchase auto insurance online will certainly work in your favor. Online consumers can find plenty of tools for making educated decisions regarding the auto insurance. By embracing the technology for your auto insurance needs, you too can experience why shopping for auto insurance online is the best way to find your policy.

Insurance.com recently released the results of its study that looked at the most dangerous drivers on the road, listed by profession.

According to the dangerous driverssurvey , some of the drivers on the list may be just as responsible for setting the law as breaking it.

Data from the Survey

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