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Cost of Driving In New Jersey Is Souring in 2011

Cost of Driving In New Jersey Is Souring in 2011

 

7/15/11 UPDATE: A number of major auto insurance carriers have recently taken a rate increase to battle the rising cost of damage claims.  InsureDirect.com represents 30 major auto insurance carriers. Although we also represents the two major carriers which revised and increased its rates, our agents were able to immediately move those clients whom experienced this revision to a lower priced carrier.  If you have experience an increase in your Auto or Home/Renters rates, we can lower your rate – guaranteed

Sadly; it will cost a New Jersey Driver near $9000.00 to own and maintain their car in 2011. This is up near 4 percent from 2010.  These statistics are according to a major study done the first quarter of this year.

The study shows a steady increase in both gasoline prices and auto parts, such as tires, are the primary drivers of the souring costly increases. Interestingly though; the study estimates vehicle maintenance costs and auto insurance rates will drop this year  The auto insurance industry is now in its 10th year of the softest insurance market  experienced in the last 25 years.

The annual cost of vehicle ownership at near 6 cents per mile for every 15,000 miles. Ownership of a compact car costs an estimated $7000 a year, while owning a large car or SUV costs near $11,000.00.

Tire costs are ballooning because of increased costs of raw materials and a barrel of crude oil.  Fuel costs are a no brainer.  Both gasoline and Diesel expected to cost around 15 cents per mile, up from near 9 cents last year. Unfortunately, with the unstable situation in the Middle East and the United States Governments refusal to allow exploration in this country; we should see $5.00 a Gallon Gasoline by the summer.

Our weakened economy will cause our cars to be worth less. Depreciation in our cars value continues to be our largest cost for owners. In this year alone, we will see a 5 percent increase in overall depreciation this year. Bottom line, this is an average of $4000.00.

Although there seems to be bad news in many economic areas, Auto Insurance does not need to be one of them. The good news is, the Auto Insurance Rates offered by Mike Dortch and the Licensed Agents at InsureDirect.com have never been lower. We represent more auto insurance carriers than any other licensed insurance web-site. Please call (800) 807-0762 or log on to www.insuredirect.com to see how much you can save. You can also email or Fax your Declaration Page to quotes@insuredirect.com or (877) 362-9203.