Car Insurance Prices On The Rise, Survey Says
August 22, 2008
The price of auto insurance has been growing throughout 2008, says an Insurance.com survey whose results were released today. Insurance.com, the biggest Internet-based provider of automobile insurance in the USA, publishes its findings regarding the state of auto insurance in America every fiscal quarter in its quarterly Car Insurance Rate Report.
The company’s Car Insurance Rate Report for the second quarter of 2008 shows that auto insurance provider’s estimated quotes have risen by 3.4% during this quarter–continuing their trend of climbing since early 2008. At the beginning of the second quarter of 2008, auto insurance cost an average of $1,831 for a year of coverage. Presently, as of July 2008, auto insurance costs an average of $1,893 for a year of coverage.
During the first quarter of 2008, the average quote from auto insurance providers had risen by 1% since 2007. Throughout 2006 and 2007, auto insurance providers’ quotes had been decreasing, so the trend of 2008 represents a major about-face.
The eastern US states of Lousiana, New Jersey, and Washington DC had the highest average annual rates. However, the biggest rise in rates happened in the mid-western of Indiana, Arkansas, and Texas. In Indiana, rates went up by almost 7%.
These percentages, of course, only apply to those auto insurance providers who supply quotes over the Internet. The numbers are calculated in real-time, based on on-line data from over a dozen auto insurance providers. Inflation is not accounted for. However, even given the present rate of inflation, auto insurance rates have risen by a considerable amount this year.
David Roush, Insurance.com’s CEO, speculates about the cause of the rise in rates. “Car insurance companies are continuing to raise prices due to rising medical costs and the rising cost of repairing vehicles,” explained Roush. The CEO predicted increases in auto insurance rates well into 2009.
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