Car Insurance Prices Increase By Over 3%
After car insurance premiums consistently fell for the last few years, they may be beginning their assent.
According to Insurance.com, an online brokerage, their lowest insurance quotes increased by 3.4% for second quarter of 2008, compared to the past quarter last year. Also it has been the second consecutive quarter in which car insurance premiums have increased.
The average car insurance premium for the second quarter of 2008 was $1,893 per year. The study was determined by comparing car insurance rates from 15 insurance companies such as Esurance, Progressive and Safeco.
The state which received the highest mark-up was Indiana with a whopping 6.7% increase, meaning that the average driver from Indiana pays $1,501 per year on their car insurance. Other states that saw dramatic increases in their car insurance premium were Arkansas with 6.1%; Texas with 4.3%; Nevada with 4.1%; and Illinois with 3.8%. What’s the cause for the increase in car insurance rates?
Experts say that the increase is do to increased medical expenses and car repair bills for insurance companies in which they must pass on their costs to the consumers. The experts do believe, however, that if oil prices do continue to increase and negatively effect the amount of driving people do than it is likely that car insurance rates will fall again -as less driving means less accidents.
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