Auto Insurance Prices Steadily Rising - New Report

The national average for auto insurance prices has been steadily increasing over the last three years, reported Steven N. Weisbart, the Senior Vice President and Chief Economist of the Insurance Information Institute (III), during a recent presentation. Weisbert highlighted the fact that cheap auto insurance premiums were common during the period between October 2005 and December 2007, when the average auto insurance premium reached a 5-year low of $795, and since then, prices have steadily risen to current levels, where the average auto insurance premium is $895.

The current price of $895 for the average auto insurance premium was reached after 3 successive years of increases, with the price of the average auto insurance premium increasing by 2.6% between 2007 and 2008, 4.5% between 2008 and 2009, and by 5% between 2009 and 2010. Weisbert also touched on the subject of elderly drivers during his presentation, highlighting the fact that the elderly, as is the case with teenagers, were statistically more likely to be involved in a fatal auto accident than the average driver, and added that the auto insurance industry needed to take this factor into account with current projections indicating a significant growth in the over-65 population in the US over the next decade.

With regards to the issue of rising auto insurance premiums, experts advise drivers to obtain at least three quotes for auto insurance before buying, in order to ensure that they get the best possible deal. Consumers who wish to make further savings on their auto insurance premiums can also obtain useful tips and information from the tip sheet published by the Federal Citizen Information Center, titled “Nine Ways to Lower Your Auto Insurance Costs.”