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The Factors That are Influencing the Auto Insurance Rate in the US

Auto Insurance Rate Factors

As a driver, you would never want to be hit with a car insurance after an accident, which was not your fault. However, according to the DC-based Consumer Federation of America, it can be possible. They have also witnessed the rate hikes on the annual premium of the car insurance as high as $400.

There are a number of factors that are responsible for the hike of an auto insurance bill. Depending on the factors, the car insurance policy can rise up beyond your expectation. According to an insurance comparison website (Zebra), the insurance price is jumping up day by day. This website has also reported that according to the State of Auto Insurance 2018, in the current year, the annual average premium is $1,427 which is a 20% increase from 2011.

The Zebra report also says that there is a good news for the Ohio drivers in this research. The good news is, Ohio comes in the top 10 least expensive states for auto insurance with an average premium of $1,037.  And the bad news is waiting for the Kentucky drivers since they come on the top 3 most expensive states for auto insurance list with an average premium of $2,050. Indiana comes in the top 20 least expensive with an average premium of $1,333.

According to the director of market insights at The Zebra and the 2018 auto insurance report developer, Alyssa Connolly, the auto insurance rates might be affected on your driving record, your age, sex, credit score and habits.

The weather events, the number of uninsured drivers and the crime rates in the region can also affect the insurance rate.

The next factor that influences the auto insurance rate is the legislation. Every state has its own governing body that regulates insurance. The localized legislation can influence the required level of insurance coverage, the degree and frequency in which the insurance companies can raise the insurance rates and the rules and regulations regarding fraud.

Nowadays, almost everyone in the USA has a car. In 2016, the gas price in the US hit the lowest price, which encourages more Americans to drive more. Driving more means more accidents and claims and more claims mean the increased insurance rate.

The bells and whistles safety features in a new vehicle could also be a factor influencing the rise of the insurance rate.

The rise on the repairing cost can also affect the insurance rate.

There are a number of things that a consumer follow to cut down their auto insurance rate. ‘Drive Safe’ should be the main motto of the consumers if they want to avoid an unnecessary rise in the insurance rate. You can follow the bellow discussed tips to save a great amount of money. You can save

  • 6% by maintaining continuous coverage
  • 8% by merging your car insurance with the condo, home or renter insurance
  • 19% by buying an insurance policy online in advance
  • 11% by raising your deductible from $500-$1000
  • 12% by purchasing a second-hand car
  • 17% by boosting your credit score.

For more information or to learn about 2018 premiums, you can contact us anytime.

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