It becomes a cause for concern when customers face rate hikes on annual premiums to the tune of $400. Especially when drivers involved in an accident that was not their fault do not expect a hit. DC-based Consumer Federation of America says it can happen to anyone.
A disturbing trend on the horizon: Auto insurance rates are climbing as number of cars and distractions increase.
The biggest change in the new millennium and in the last decade for all us Americans were the lower oil prices. These not only affected and influenced the global oil economy but helped us get out of the economic recession much faster. A steady rise in jobs along with software technology enhanced models put an astronomical number of cars on the roads in recent years.
That appears to be applaud-able until you realize the effects on car insurance costs for the general driver public. A long active insurance comparison website, The Zebra, red flags the national average cost of car insurance this year @ $1,427, a disconcerting 20% rise from 2011. State wise, North Carolina saw the smallest increase, the biggest took place in Michigan.
Result for urban areas with higher population: Auto Insurance goes up.
Rob Hoyt, professor of risk management and insurance at the University of Georgia has this to say. “Frequency and severity of accidents govern premiums. These are the main reasons responsible for the current rate hike.”
What is putting more and more vehicles on the roads? Is it merely the rise in number of eligible drivers in an ever-growing population or something else? Is it high time you learn about no down payment car insurance?
Surprisingly, the cause could be with faster innovative manufacturer’s technology for both hardware and software.
Vehicles are transforming into intelligent beings, lifting the prices and pushing the not-so-old models into the used car industry. What is baffling is that despite having better vehicles on the roads, frequency and severity of accidents is definitely off on a rising tangent. Little wonder then that insurers view our costlier ‘light four-wheeled pleasures’ as a factor for boosting insurance rates!
If INSURANCE – financial safety coverage has become compulsory what can consumers do to lower their burden? Moreover, do you need to get insurance without a license too?
No need to shop till you fall, but do shop around
As far as the e-commerce is concerned, loyalty does not work anymore. Our online competitive market place changes its colors and tones almost overnight. It is too fast and slow. Loyalty reward programs come nowhere near it.
You can definitely stay where you are because you have been there always…. However, no one is pointing out the foolhardiness in this type of behavior, least of all your very own service provider! Maybe you are still savoring the sweet deal you received just when you were direly in need of it.
Take a pointer from The Zebra. View and review premiums or even insure a car without a driving license every six months to a year for competitive deals.
Make a grab for all kinds of instant benefits
Remember changing tone and colors? You no longer need years to become worthy of lower car insurance costs. Auto insurance companies are sprinting short term too! If you believe James Carson, professor in insurance at the University of Georgia. Insurers are open to monitor driving and doling out benefits, rewards and discounts just to retain their existing customer base. Any infraction, these vaporize faster than they appeared.
Shop for bulk pricing
Bundle all sorts of insurance coverage together. This is one case where putting all your eggs in one basket provides you higher protection and wonder of wonders – higher financial relief. Progressive and Allstate allow bundling home, car insurance, even motorcycle and boat insurance under a single umbrella coverage.
Check your other insurance
Any change in your health and shopping habits is sure to adversely affect your total insurance costs. Yes, life just got tougher and costlier!
Insurers flag dipping scores and increasing health expenditures as a sign of AGEING.
Let’s face it. The financially strong and young get all the benefits and the weak or ageing are edged towards early retirement by our fickle economy.
So, what is worrisome? Paying more for total coverage when one factor takes a hit.
Future is Unknown
Insurance, especially for autos is facing an unknown future. Technology and innovative living makes this unpredictable. Self-driving cars and autonomous urban transport could well put an end to your car insurance worries. Sooner than you think!
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