Crisis Affects Auto Insurance Rates

The auto industry is struggling to remain solvent, a problem that is not helping keep auto insurance affordable for consumers. The industry has resorted to cutting branches and slashing jobs in the struggle to make ends meet and avoid bankruptcy. AAA announced they will close 34 offices and cut 200 jobs in eight states as branch visits declined 35 percent since 2002. Companies like State Farm are pushing for a significant rate increase.

As a result, the automakers are giving dismal sales numbers, dropping further and further down. General Motors and Chrysler both received billions of dollars in federal loans at the end of 2008 to stay afloat. Such harsh times can have a ripple effect on the consumer. To find a new agent use our online quote form to compare up to 5 quotes from local agents.
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Such devastating industry debts are causing auto insurance rates to skyrocket. Drivers now face a possible 11-percent auto insurance hike on their premiums in 2009. But instead of lapsing on auto insurance altogether, it’s best to consider in what ways the consumer can reduce their auto insurance costs on their own. Check with your agent or compare car insurance quotes online, so that you can get a better rate from your current agency.

1. Tell your agent about your clean record. If you’ve got a fairly clean record with minimal to no marks, then you could be given a discount or reduce rate on your auto insurance. Your agent probably isn’t exactly receiving regular updates on your record, so telling him or he would be the best way for your agent to have a chance to lower your auto insurance.
2. Safety features. Does your car have four-wheel drive? Anti-lock brakes? Automatic seatbelts? Airbags? An alarm system? You’d be surprised what safety features could help reduce what you pay for your auto insurance. Don’t forget to tell this to your agent—no detail should be overlooked when trying to save you cash.
3. Give up unnecessary coverage. When was the last time you checked the details in your auto insurance policy? There may be some coverage in there that doesn’t apply to you. Make sure you’re not paying for coverage you don’t need. Update your auto insurance policy with your agent ASAP.
4. Increase your deductible. The higher the deductible, the less the auto insurance provider has to pay out in the event your car needs extensive repair. Consider if you’re comfortable with a higher deductible in an effort to reduce your auto insurance premium.
5. Look elsewhere. If all else fails or isn’t saving you the amount of money you were hoping for, looking for altenatives by comparing insurance quotes may benefit you more than you know. There may be another auto insurance provider offering a much more affordable rate for a similar coverage plan. And insurance agents work harder to give you a lower rate when they know you’re “shopping” and other auto insurance providers are also competing for your business. At the very least, use our online form to shop around at a minimum of once a year, so you at least know your options.