Car Insurance Quotes Affected by Economy

Industry expert and the Insurance Information Institute's Senior Vice President, Steven Weisbert, gave a presentation last month which highlights the rise in car insurance quotes over the past three years. This disappointing information is detailed in the article "Report: Car Insurance Price Trends Are Out of Sync with Economy" by Ben Zitney found on OnlineAutoInsurance.com.

Weisbert believes the auto insurance market started struggling at the end of 2007 after four consecutive years of dropping car insurance rates. The national average costs on car insurance coverage has increased steadily for three years now which is directly affecting stuggling consumers in this down ecomony. The report shows an approximate increase of 12% from '07 to '10 and this is causing huge impacts on families.

The presentation "Mega-Trends Influencing the Future of Auto Insurance" by Weisbert was addressed back in October 2010 at the National Auto Insurance ExecuSummit in Connecticut. Not only did it go over many new trends in the industry, but it helped to explain some of the increases in car insurance rates over time. Now more than ever, consumers should be shopping around to compare car insurance rates since there can be large variations in prices from insurer to insurer.

Cheapest Car Insurance

The article "Insurance Rates: Top 5 States to Insure a Car for Less" by Laurent Belsie on CSMonitor.com, compares the top 5 states where the lowest percentage of the median income goes to pay for car insurnace. If you live in one of these states it's still very important to compare car insurance, but knowing you will probably get a good deal is comforting to know.

Number five on the list is Utah, where the median driver spends about 3.5% of their income on car insurance. Their car insurance quotes may be lower because Utah has twice as much space and many less drivers than a state such as Virgina. Next on the list is New Hampshire, then Hawaii, Minnesota, and the cheapest on the list is Massachusetts.

Massachusetts may be surprising since it's often known as being an expensive state. But because of the high income overall in the state, residents only spend about 2% of their income on car insurance. This is the lowest in the country overall, and this is even considering the bustling city of Boston and their higher rates.

Compare Car Insurance Rates

According to the article "10 Tips To Drive Down Rising Car Insurance Costs" by Victoria Bischoff on the CityWire website, car insurance costs are up but there are ways to help keep costs down for drivers.

The first tip discussed is shopping around to compare car insurance rates. It seems obvious, but many consumers do not take the time to shop around. With many website available to get multiple quotes all at once, it's painless to go this route. If drivers are more comfortable getting a State Farm insurance quote from an agent, then getting another quote from a different company agent, you still will save. It's worth the effort.

There are other tips discussed, but one important one is to downsize your car. This will have an impact on your car insurance premium immediately. Safe, and affordable cars are the cheapest to insure since replacing and repairing them is cheaper. By doing your research and figuring out which car will suit your needs the best, you can save a lot of money. It's recommended in this article to also avoid modifying your car since this can increase rates. Alloy wheels and racing stripes could have the insurance company viewing the driver as higher risk which would in turn increase rates.

Compare Car Insurance: Which Cars Are Cheapest to Insure

There is a new report found on MSN’s Money Central web page which lists the most and least expensive cars to insure for 2010. This information is helpful to have as you compare car insurance to use for comparison. Having an idea of where cars rank in insurance costs can prove very beneficial.

First on their list for the most expensive car to insure in the CAR category is the Porsche 911 Carrera GT2 2-door coupe with 6 cylinders which has an average premium of $2943.78. The next car on the list is the Mercedes S65 AMG 4-door sedan with 12 cylinders at $2863.03. The 3rd most expensive auto is the Porsche Panamera Turbo AWD 4-door sedan with 8 cylinders with an average rate of $2837.39.

The cheapest car to insure is the Dodge Caliber SXT 4-door hatchback with 4 cylinders with an average rate of $1192.85. Next on the list is the Dodge Caliber 4-door hatchback with 4 cylinders at $1196.21 and the 3rd least expensive auto is the Volkswagen Golf GLS 4-door hatchback with 4 cylinders at $1196.39 based on this report.

Keep this information handy as you shop around for car insurance. An educated consumer saves more money, so it's definitely worth your time to keep up on reports such as this.

State Farm Car Insurance Quotes: Student Discount

According to the article "Premium Opportunities" by Aleksandra Todorova on the Wall Street Journal's website, car insurance rates possibly double or more when a teenager is added onto their parents' policy. When the teen heads to college they can expect some relief.

Many companies offer "good student" discounts. As an example, State Farm car insurance quotes can be cheaper if the student has good grades. Depending on the student's gender and whether or not they are an occasional driver will impact how much of a discount. It can range from 9% to 35% off the premium.

State Farm Insurance's research shows that it can often be cheaper to keep a student on the parent's car insurance policy. For an example, in Indianapolis, it would cost about $400 more a year for a student to have their own policy.

Parents usually get a bigger savings for their sons who go off to college than daughters because rates for males are higher to begin with according to Robert Hunter, director of insurance at Consumer Federation of America.

California Auto Insurance Suit

A California judge threw out a lawsuit that challenged rules requiring California auto insurance companies to base their rates primarily on drivers' records instead of where they live.

Superior Court Judge Loren McMaster granted a summary judgment, ruling that regulations were consistent with a rate-regulation initiative adopted by California voters in 1988.

Three insurance groups - the American Insurance Association, the Association of California Insurance Companies and the Personal Insurance Federation of California - sued, contending that a driver's residence is essential in determining risks and auto insurance costs.

Ken Gibson, a vice president of the American Insurance Association, predicted the new regulations would result in higher rates for some California residents

But consumer groups argued that the old rules could have penalized good drivers.