Business News Study: Auto Insurance Rates Continue to Climb

2008-07-17 09:56:00

Low Mileage Discounts May Help as Consumers Scale Back Commutes

CLEVELAND–(EMWNews)–Auto insurance rates continued to rise for the second quarter this year,

according to a study by, the largest online auto insurance

agency in the United States.

Insurance.coms quarterly Car Insurance Rate

Report found that the lowest car insurance quotes, on average, increased

3.4% over the previous quarter, rising from $1,831 per year to

$1,893 per year. The rate report is based on real-time auto insurance

quotes given to consumers from more than a dozen insurance companies

during the second quarter. It marks the second consecutive quarter of

rate increases, following last quarters 1%

increase, reversing the trend of steady or falling auto rates for the

past several years.

Our quarterly rate report is a leading

indicator of where auto insurance rates are heading,

said Dave Roush, CEO of Car

insurance companies are continuing to raise prices due to rising medical

costs and the rising cost of repairing vehicles. We believe rates will

continue to increase through 2009 as carriers adjust their rates to

compensate for these costs.

Car insurance rates vary by state, and some states experienced rate

quote increases in the second quarter that were greater than the

average. Indiana and Texas, for example, saw rates jump 6.7% and 4.3%,


Individual states, companies or industry groups might report annualized

increases that are still quite small, as their data reflects the past 12

months, when rates were falling or holding steady. The

data, however, is real-time, representing the real-world experience of

consumers who have gotten an online or phone quote for auto insurance in

the last three months.

Now, more than ever, consumers should compare

car insurance rates before they renew their policies,

added Roush. If they comparison shop and

follow some simple strategies, they may realize hundreds of dollars in

savings with a new company.

Additional Findings

  • The most expensive auto insurance quotes were in Louisiana ($2,577),

    New Jersey ($2,544) and Washington, DC ($2,466).

  • Among the top 10 states seeing the sharpest increase in car insurance

    rates in the 2nd Quarter were Indiana (up

    6.7%), Arkansas (up 6.1%), Texas (up 4.3%), Nevada (up 4.1%) and

    Illinois (up 3.8%).

  • The least expensive states for auto quotes in the second quarter

    included Ohio ($1,268), Wisconsin ($1,276) and Maine ($1,285).

Money Saving Tips offers these tips for consumers:

Low Mileage Discount

Many drivers are considering telecommuting, car pooling or taking public

transportation a few times a week to save money. Be sure to notify your

insurance company of any change in driving habits. Driving less could

save you additional money on premiums. Many companies offer a low

mileage discount if you drive less than

10,000 miles each year.

Dont Over-Insure Your Car

Moneys tight, so many consumers are hanging

on to their older cars. If thats your

situation, reconsider Comprehensive and Collision coverage

it may not be cost effective. Insurance only pays for your cars

actual cash value (or fair market value), so Comp and Collision may not

be worth keeping on an older car that has depreciated considerably.

Be a Smart Online Shopper

Comparison shopping online can save you time and money. Just make sure

you understand whether youre getting a quick

quote, which is just an estimate, or a

bindable online auto insurance quote. There can be a big difference

between an estimate and the final rate. provides consumers

with real-time accurate and bindable auto insurance quotes from over a

dozen leading insurance companies, and the ability to buy a policy

quickly online.

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Insurance.coms latest Car Insurance Rate

Report highlights the lowest average car insurance rates quoted to

consumers visiting in the second quarter of 2008. The

rates consumers viewed, but didnt

necessarily purchase, come from auto insurance quotes consumers received

as they shopped and compared rates from over a dozen of the nations

leading auto insurance companies. Over the course of a year, provides online car insurance quotes to more than 1

million people visiting the website. While the Car Insurance Rate Report

is a broad indicator of pricing activity in the personal auto insurance

marketplace, it is not a comprehensive index as it reflects only the

quotes of carriers that have participated in the platform

in the states where it quotes (all states except Alaska, Hawaii, and

Massachusetts). See the entire report at

ABOUT INSURANCE.COM is the leading online independent auto insurance

agency in the United States. Consumers can instantly compare quotes from

top auto insurance companies by completing one application at our

website, To

buy a policy, consumers have the option to complete the transaction

online or speak with a licensed agent. Our innovative technology links

directly to the rating systems at 15 major insurance companies,

streamlining the shopping process for consumers and enabling companies

to attract new customers through real-time underwriting and quoting.

In addition to providing comparative quotes at, the

company provides white label auto insurance solutions to financial

institutions, affinity groups and online marketplaces. Other products

include life, health and home insurance as well as travel, dental and

pet health insurance. Founded in 2000, is based in Solon,


Sari Martin/Susan Hartzell
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