Automobile Insurance at Unbelievable Rates

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>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.

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