Cost of U.S. Auto Insurance Up 1 Percent In a Single Month
The cost of auto insurance in the United States was 0.9 percent higher in November than it was in October, according to new data released by the U.S. Bureau of Labor Statistics (BLS). This data represents a drastic increase in coverage over just a one-month period and shows that the price to insure is still on the rise.
End-of-Year Increases Could Continue Into 2011
According to the CPI report, October and November saw the biggest increases in premium costs–1.1 percent and 0.9 percent, respectively–resulting in consumers paying roughly $8-$9 more each month for coverage.
The numbers from the BLS’s Consumer Price Index (CPI), in conjunction with data compiled from the National Association of Insurance Commissioners, were even more telling of the increases we’ve seen in coverage in 2010, as detailed in the press release.
According to the stats, the average cost of auto insurance at the beginning of 2010 was around $853. After looking at the month-over-month increases, the press release revealed the average cost of insurance to date would sit at around $889.
This means that while we saw an average 1-percent increase in coverage toward the end of the year, the total increase for 2010 looks to be around 4.2 percent.
If we continue to see sharp increases as we have in the past couple of months, which are largely attributed to changes in insurer rate-calculation formulas and increases in state-required minimum levels of coverage, premiums could very well skyrocket in 2011.
What to Do About Increasing Costs
Unfortunately, increasing costs in auto insurance cannot be avoided completely. However, there are options available to help reduce the already-increased costs. Here are a few options:
- Compare companies: While average auto insurance rates may have increased, there are bound to be insurers that have not increased their rates. Take time to shop around with multiple companies to find the rates that work best for you. Of course, while shopping, search reviews and coverage choices to make sure the insurance itself will be up to par.
- Look for discounts: Another great way to reduce the price of coverage is to look for auto insurance discounts. Whether you are in the military, bundle your insurance or are a safe driver, there are plenty of auto insurance discounts you’ve probably never heard of. Take time to explore what they are to see how you could save.
- Low-mileage discounts: If you don’t drive much, you might consider low-mileage discounts that only charge you based on the number of miles you drive.
There are a number of great ways to save on your auto insurance premium, so while it may seem like the recent increases in coverage are bound to sentence you to a life of expensive coverage, by taking steps to find discounts, you’re bound to pay as little–or even less–than you have in the past.