Car Insurance Rates Costs See Minor Hike
Auto insurance companies will be increasing their car insurance rates in 2013. The Insurance Information Institute (III) indicates since there has been an increase in car insurance rates for the third straight year since 2000 – an auto insurance cost increase is very likely. Even though the small spike in his car insurance rates are likely to continue through next year. Online Auto Insurance Agencies specializing in providing car insurance rates online like Combined Insurance Group, Ltd. have indicated even these type of car insurance rate increases will be still affordable for all it’s auto insurance customers.
Average car insurance rates in the US will reach an annual premium of approximatly $900 by December 31, 2012. The one item I find most interesting is; if we do actually reach this average of $100.00 shy of $1000.oo – it will be $3-dollar short of the highest car insurance rates in the past 18 years. In fact; the next highest average is just shy of $850.00 which was recorded in 2004. However, the III considered the increased to be nominal considering inflation which increased $3 from 2011. Said inflation adjustment makes the III estimated increase lowest than any average auto insurance expenditure recorded from 1994 to 2010. III’s Vice President for Media Relations Michael Barry said that the inflation rate has remained steady in recent years.
Barry expressed that having an unaffordable price hikes are impossible today as there are strict state regulations that guide auto insurance rates increase, and the presence of a very competitive insurance marketplace prevents insurers to increase their costs at very high levels. Barry said, “Consumers who find that their auto insurer, in their view, is charging too much are certainly not lacking for options.” Certainly, there are a lot of other auto insurance companies, agents and brokers in each state which the consumer may consider if they find their current insurer to be charging too much.
To reiterate, auto insurance average expenditures does not only equate to the coverage price, it also equate to what consumers will have to pay for their coverage.
This recent estimates from the III utilized expenditure figures from the Consumer Price Index and the National Association of Insurance Commissioners.