Several factors come into play to make these rates so favorable. One is the decrease in accidents, thanks to the middle-aged baby boom generation. Despite the fact that the greater damages inflicted by SUVs have caused repair costs to grow at twice the rate of inflation, automakers are building safer cars. This helps to offset rising medical fees, the key factor in insurance expenses.
At hearing this, you may be surprised if you are not one of the lucky beneficiaries of this decreased insurance rate. This is because insurers' rates vary widely by company, state and by their experience with different types of drivers. The obvious thing to do is shop around for a rate that better reflects this industry drop. Compare rates between several companies to find out who can give you the better insurance rate. You can also save money without changing companies by getting rid of unneeded coverage. For instance, if your credit card company covers rental car insurance, you wouldn't need the same from your auto insurance provider. You may also not need medical coverage if you already have a good health provider. Pay only for what you need.
Other suggestions are to make sure you are aware of any discounts offered by your insurance provider, raise your deductible and simply pay your bills on time to save money on your premium.
Insurance fraud and staged accidents are being taken much more seriously by the insurance industry, which has convinced law enforcement to get serious about cracking down on these organized crime rings. Scams like these can have a tremendous effect on your insurance rate. It is estimated that insurance scammers take $100 billion a year from insurers, and if it weren't for these, you could be paying up to $300 less for auto coverage. To put this loss into perspective, insurance consulting firm Conning Research & Consulting relate these financial losses to two World Trade Center attacks every year .
Examples of insurance fraud include staging an accident, faking injuries, and padding insurance claims. Over time, this trend has caused a noticeable rise in home, health, and auto insurance premiums.
What's worse is that this is happening with the participation of more and more Americans every year. This is because it's hard to see the actual effects that exaggerating on claims have on the industry as a whole. The bottom line: whether you are part of an intricate group who stages accidents or are someone who is wanted to get some extra cash from a small fender bender, you are committing insurance fraud and are ultimately worsening everyone's rates.
Your insurance rate is also determined by the area in which you live. If, for example, you reside in New York or New Jersey , you will be paying a lot more to cover your car as opposed to those who inhabit more remote areas such as Tennessee . In fact, the Northeast is home to four of the five most expensive car insurance states, according to National Association of Insurance Commissioners. According to them, the five most expensive states for having car insurance are (starting with the most expensive) New Jersey , New York , Washington , D.C., Rhode Island and Massachusetts .
By Kelley Caner