A study released by Insurance.com found that car insurance rates continued to rise during the third quarter of 2008.
The study, called RateWatch for Car Insurance, is based on real-time insurance quotes provided to consumers by more than a dozen car insurance companies during the third quarter. The findings revealed that on average, the lowest auto insurance quotes were 3% higher than they were in the 2nd quarter of 2008, which, in turn, saw quotes that were 3.4% over 1st quarter numbers. Average premiums rose from $1893 / year to $1949 / year.
According to Sam Belden, vice president for Strategic Alliances at Insurance.com, “”The increase in rates this quarter represents a trend that will most likely continue into 2009. Drivers should take some time to understand how the type of car they drive, and their driving habits, affect their rates.”
Because auto insurance rates vary from state to state, some people experienced rate quote increases that were greater than the average of 3%. Rhode Island’s rates increased by 7.4%, while Nebraska and Washington, D.C. quotes were higher by 8% and 8.3%, respectively.
In a press release discussing the findings, Belden added, “There are many things consumers can do to save on car insurance, like comparing rates from several companies before they renew a policy, driving more carefully, and never letting a current policy lapse.” He added, “When a driver does not have continuous coverage, he or she may not qualify for the best available rates, and may be placed in the same risk category with drivers who have violations and accidents. This can cost a driver significantly more money for years.”