The Auto Insurance Rates to Drop in Last Quarter of 2012

auto insurance rates

Auto insurance rates are expected to drop for drivers in 2012, according to new data from the Insurance Information Institute (I.I.I.). The institute released data this week that revealed car insurance premiums were to fall lower than at any point in nearly 20 years.

Auto Insurance Rates to Fall in 2012

The I.I.I. shared a forecast on its website this week, revealing that the auto insurance rates are likely to total $839 in 2012, which is less than the $842 the typical U.S. driver spent for coverage in 2004.

But the news gets even better. According to the I.I.I., when the figures are adjusted for inflation, auto insurance expenditures are expected to be 19 percent lower this year than nine years ago.

The primary reason that costs are dropping among insurance companies is competition. Insurers are more accurately able to assess the risk of auto accidents, which has fostered competition.

How to Maintain Low Car Insurance Premiums

If you’ve noticed that your car insurance premiums have reduced in recent months, you may want to know what you can do to hold on to these low auto insurance rates. There are a few steps you can take to maintain, or even further reduce the cost of auto insurance:

  • Pay as you drive: One option many drivers now take advantage of to lower their auto insurance premiums is the Pay as You Drive (PAYD) option offered by insurers. The popular pay as you drive auto insurance discount allows drivers to reduce the cost of coverage by driving fewer miles and maintaining good driving habits.
  • Have good credit: Your auto insurance rates are partially determined by your credit score. One great way to lower your car insurance premiums is to increase your credit score.
  • Increase your deductible: The higher your auto insurance deductible, the lower your car insurance premiums. So if you think you can afford a higher deductible, consider increasing it to reduce your monthly car insurance costs.

There’s nothing better than learning that auto insurance rates may fall for all drivers this year. But even if your rates aren’t automatically reduced, it’s great to know that you can find ways to lower your car insurance premiums on your own.