Auto insurance companies spend millions on TV, Internet, and print advertising telling you how much you’ll save by choosing them versus the competition.
While they all want a competitive price advantage, auto insurance premiums should remain stable in 2011 at best, and continue their consistent increase in recent years. Contemplate these issues.
- Newer car prices remain high, generating expensive repair costs, even for smaller dents and scratches.
- More autos on the roads and highways create higher probabilities of accidents.
- While keeping premiums reasonable is a priority, all companies must still get to a positive bottom line.
- As the U.S. population continues aging and living longer, accident rates continue to increase.
Compare auto insurance quotes and you’ll see similarity in pricing for the major companies. When you compare insurance rates with the “bargain” companies, you’ll probably see a significant difference from the major insurers.
However, most of these low rates are “introductory” premiums. After the first six months, you may have “sticker shock” when you notice your renewal premiums, which may be two or three times higher than your original auto insurance rates.
Unless auto prices decrease soon or the number and severity of accidents declines sharply, car insurance rates and premiums should remain consistent or increase in 2011. You may see other features, like Progressive’s “choose your premium,” allowing you to select coverage that you can afford versus protection that you may really need.
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