Posts Tagged ‘auto insurance price’

Hey, Low Risk Driver: Are You Paying Too Much For Auto Insurance?

Tuesday, June 19th, 2012

AAA’s annual Your Driving Costs brochure found that a low-risk driver with a clean driving record can expect to pay $1,001 a year for insurance on a sedan this year. This week, the Consumer Federation of America found that moderate-income individuals with clean driving records were being quoted high rates for minimum liability auto insurance coverage.

How Much Are We Paying For Auto Insurance?

According to the CFA, four companies — State Farm, Allstate, Progressive and GEICO — have 48 percent of the car insurance industry nationwide. In their research, they looked up what a 27-year-old male laborer and a 35-year-old female bank teller with perfect driving records and decent credit would pay. They drove paid-for 2002 Honda Civics 10,000 miles per year and made over $30,000 a year. They found:

  • 56 percent of the auto insurance rate quotes were over $1,000.
  • 32 percent of the auto insurance rate quotes were over $1,500.

Worst of all, quotes to the same woman from four auto insurers ranged from $762 to $3,390!

What’s Going On?

Insurers argue that their rates reflect risk and cost, but it’s hard to justify rate fluctuations that are off by thousands of dollars. The Insurance Information Institute believes that the highly competitive auto insurance industry leads insurers to price however they choose in the open market economy. The III added that city-dwellers can expect to pay higher premiums because theauto insurance claims payouts are generally higher.

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Are you paying too much? Search auto insurance quotes! It’s quick, easy and free to do!

Can Your Smartphone Lower Your Auto Insurance Premium?

Friday, June 1st, 2012

We recently reported that auto insurance companies would be relying on driver data to determine how much to charge you for your premium. Yet, in the past, it could be a real hassle — requiring the installation of a special box in your car. Now State Farm and Ford are teaming up to turn your smartphone into an auto insurance premium lowering device. Through the “Sync” platform, State Farm will be able to determine: how often you drive, how fast you drive,  and how often you slam on your brakes. Sync supports 3G and 4G smartphones and bluetooth technology already, so it’s not much of a stretch.

Drive Less & Save

State Farm will periodically pull data from Sync’s smartphone link. Just for joining the program, customers will receive a 5 percent discount on their premiums. Individuals driving the national average of 1,000 miles per month will qualify for an additional 10 percent discount. Customers who rarely drive could see up to a 40 percent discount on their auto insurance rates! The program is launching in Utah, but will expand to other states.

Drive Safe & Save

For now, State Farm will be just tracking mileage. Ultimately, they plan to track much more, such as acceleration / stopping patterns, where people travel, speed and how often drivers go through stop signs. Businessweek speculates that one day drivers will have a taxi-style meter on their dashboards that tracks how much they’ve ratcheted up their insurance premium based on their driving habits. Would motorists think twice before speeding or slamming on their brakes? The results are yet to be seen, but the use of smartphones can revolutionize what Americans pay in auto insurance.

How To Save Money On Auto Insurance Now…

While waiting for the program to roll out, drivers can get lower auto insurance rates by looking up online auto insurance quotes. It only takes a few moments to see exactly how much one can save by switching providers! Drivers who are interested in making the transition, can elect to have a representative contact them by phone.

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