The burgeoning gasoline prices, geographical location, personal profile of an automobile owner are a few factors that contribute to the varying rates of automobile insurance . Each factor has a definite role to play in securing a suitable insurance . It makes an interesting study when you compare the various rates you can arrive at by varying one or more of the above mentioned factors. With so many companies offering to give you the best deal, it is imperative that a thorough survey be made before settling onto a particular deal. What’s more, you don’t need to open any directory or set foot outside your home to shop around. Online services have solved the problem for you. The best quote can just be a click away! The company websites collect a lot of personal information from an individual to take into account all possible factors that go into building up an arbitrary sum for the insurance policy.
Auto Insurance pricing Report – 2005
A report titled “Auto Insurance Pricing Report” released by Insurance .com in 2005 has unfolded some fascinating facts for us to ponder. According to this report, depending upon a geographic location, the auto insurance rates have shown a decreasing trend in 2005. The nation’s major states have reported a sharp decline compared to earlier figures. A resident of New York has paid an average $3,165 for auto insurance in 2005 showing a 3.4% decrease as compared to 2004 rates. Similarly, people belonging to Minnesota have paid an average $2,172.91, an incredible 8.4% less than in 2004. However, not all states have fared as well. Few have recorded marginal rise in insurance rates. Interestingly, the increase in gasoline prices too, has been instrumental in decreasing the insurance rates. The spiraling gas prices are forcing automobile owners to drive their vehicles less. According to Lou Geremia, President of Insurance .com, cut-throat competition that has gripped the auto insurance companies, has resulted in the fall in insurance rates. “We anticipate auto insurance rates will continue to fall in 2006, making frequent comparison shopping for auto insurance an important tool for consumers who want to save money,” he added. A comprehensive report can be viewed at the following links:
http://www. insurance .com/Article.aspx/Auto_ Insurance _Rates_Decline_in_2005/artid/342>Auto Insurance Rates Decline in 2005
http://www. insurance .com/Article.aspx/MostLeast_Expensive_States_for_Auto_ Insurance _in_2005/artid/343>Most/Least Expensive States for Auto Insurance in 2005
The personal history of the insurance policy buyer
In addition to the geographic location, the policy amount depends, to a large extent, on the profile of the buyer. A person’s age, occupation, credit history, marital status, make of the vehicle, security features installed, usage, accident history etc play a vital role in fixing up an amount. Just as a bad credit history or owning an SUV can increase the insurance figure considerably, on the other hand factory installed security features and protective gear can slash the amount. Similarly, accident history and heavy usage make the figure jump to a higher amount. A potentially high risk occupation such as that of a pilot or a door-salesman can result in increase in the policy amount. The comparison of policy rates literarily must start from the automobile showroom so that the vehicle not only fits into a person’s utility and budget but also allows savings in the insurance policy.
A sample quote for a hypothetical buyer (from zip code 71018, Louisiana) obtained from the well known insurance company GEICO can be viewed by clicking https://sales.geico.com/prequote.do?&GENINFO_recalledSID=061003.171821781.95751Z-0002&GENINFO_sessionId=061003.171821781.95751Z-0001&GENINFO_recentlyQuoted=false&GENINFO_currentPageName=listquotes&GENINFO_recallType=quotelistpremium&>here.
The mode of payment has been briefed by the company in the following manner:
Full Payment
Date Due Amount
2006-10-03 $954.80
4 Payments
Instalment Date Due Amount
1st Payment 2006-10-03 $243.00
2nd Payment 2006-11-03 $243.00
3rd Payment 2006-12-03 $242.00
4th Payment 2007-01-03 $242.80
5 Payments
Instalment Date Due Amount
1st Payment 2006-10-03 $243.00
2nd Payment 2006-11-03 $183.00
3rd Payment 2006-12-03 $183.00
4th Payment 2007-01-03 $183.00
5th Payment 2007-02-03 $182.80
*Note – Payments can include a service fee and state charges (as applicable).
In the above example the personal history of the prospective insurance buyer is as follows:-
Number of cars owned :2 (2005 BMW 330i, 1998 Toyota 4runner SR5)
Marital status :Married
Age :32 yrs
Cars handled by :owner and spouse
Anti-theft system :available
Safety devices :available
Accident history :nil
Depending on this limited data the buyer has been offered, a quote of $442.80 for the 2005 BMW 330i and $512.00 for the 1998 Toyota 4runner SR5 with a few discounts due to zero accident history and installation of safety devices in the cars.
Another interesting feature provided by several insurance companies that can result in discount on the existing quote is asking for multiple insurance policies from the same company. For example if an automobile owner accepts a home insurance policy along with the auto insurance one, then he may be in for a good amount of discount on the original auto insurance amount.
Taking into account all the factors discussed above, we can arrive at the following lists of most expensive and least expensive states apropos auto insurance rates:
Most expensive cities for auto insurance
Detroit, MI : $5,162
Philadelphia, PA: $4,142
Newark, NJ : $3,482
Los Angeles, CA : $3,225
New York City,NY: $3,127
Least expensive cities for auto insurance
Roanoke, VA : $758
Wapakoneta, OH : $871
Chattanooga, TN: $911
Green Bay, WI : $948
Raleigh, NC : $949
Finally, it is advisable that when going for insurance of an automobile, a considerable amount of time be spent on comparing the quotes of all the
insurance companies offering insurance for a resident of a particular region and then arrive at the best possible deal. It is surprising how an
insurance amount can vary by hundreds of dollars when compared with another company! This sort of discrepancy may be due to the difference
in features and benefits offered by the insurers.
