This week, the monthly RateWatch report was released by Insurance.com, and the results were welcome. In a time when almost everything is becoming more expensive, the March report found that American auto insurance rates decreased by an average of $103 to $1879/year, a significant improvement over the high annual average cost of $1982, which peak was reached last October.
Specifically, the March RateWatch information showed auto insurance rates dropping in nineteen different states, with the most significant reductions in Arizona (-5.1%), Virginia (-4.5%), New Hampshire (-4.1%), Texas (-2.8%) and Georgia (-2.7%).
After a year of insurance rates that steadily increased, this decline is seen as representative of a continuing shift in the insurance cycle. When combined with tighter family budgets and concern over continued employment, the lower rates may cause many consumers to consider new auto insurance policies.
According to an informal poll conducted by Insurance.com last month, 44% of consumers questioned felt that they were paying too much for their car insurance, and 22% said that an increase in rates from their existing company would force them to shop for new insurance.
According to Sam Belden, Insurance.com’s vice president, “Consumers who shopped for car insurance recently saw rates that were $100 lower on average than rates quoted last fall. Most policies renew every six months, so this decline in average quotes comes as good news for consumers whose policies were affected by rising prices in late 2008.”