2007 Auto Insurance Pricing Report

Based on data from the lowest average auto insurance rates viewed by over 1.4 million car insurance consumers on Insurance.com, auto insurance rates continued to decline according to Insurance.com’s 2007 Auto Insurance Pricing Report. Only six states on Insurance.com’s platform showed increases in premiums; the rest all showed decreases, in many cases for the third year in a row.

With a year that saw increased competition between auto insurance companies, and higher, though arguably more stable gas prices, car insurance rates continued to decline for many states,” reports David Roush, CEO of Insurance.com. “Our 2007 Auto Insurance Pricing Report indicates a 5.2% decrease in car insurance rates from 2006 prices.”

In Insurance.com’s 2006 Pricing Report, the national average premium was $1965. This went down to $1868 in 2007. “This is a clear indication that prices are constantly changing, often in favor of the consumer. It’s never been more important to make sure you’re not overpaying for your auto insurance. Insurance.com makes it easy to compare rates from leading national companies,and to buy immediately, online or over the phone.”

According to the Insurance.com 2007 Auto Insurance Report, North Carolina saw the largest decrease in car insurance premiums, paying an average of $1,816 for car insurance – a 24.5% decrease from 2006. This is the first year since 2004 where North Carolina has showna decrease in the Insurance.com Pricing Reports. Arkansas and South Dakota were in second and third place, with decreases of 14.5% and 14.4% accordingly.

At the end of 2007, Nevada was in the top spot for states with the largest percentage increase in car insurance premiums, with an average of $2,083 – a total increase of 6.8% from 2006. Connecticut moved up into the number two position with a 3.2% increase over 2006 premiums, while a few states, Indiana, Illinois and Arizona, actually made the chart only because their premium decreases were so small. Interestingly, Indiana had previously been seen showing a slight increase in premium in early reports this year, but ended up with an 0.5% decrease over 2006 premiums.

Insurance.com’s 2007 Auto Insurance Report continues to support the theory that where you live plays a large role in how much you pay for car insurance. This is because auto insurance companies take into account if your area has limited parking, a higher traffic population, a greater theft rate, and the amount of uninsured drivers in your area. So the worse your city’s statistics are, the moreyou will pay for auto insurance.

Even those states which paid the most for car insurance premiums saw prices drop in 2007, proving that it’s always a good idea to shop around for the best prices. Take a look at the charts below to find out which states paid the most (and the least) for auto insurance in 2007.

Even though there appears to be a big difference between premiums in New York and Wisconsin, or Louisiana and Ohio, you don’t have to relocate to a different state just to save on auto insurance! All you need to do is shop around and make sure you’re really paying the right amount for your current coverage. To assist you in this process, Insurance.com lets you compare the rates of best-in-class car insurance providers – helping you find the best auto insurance rate available for you and your budget.

Wondering where your state ranked in the Insurance.com 2007 Auto Insurance Pricing Report? Below is a list of the 48 states Insurance.com surveyed. States are ranked in alphabetical order with the price increase or decrease displayed as a percentage for each state.

About Insurance.com’s 2007 Auto Insurance Pricing Report
Insurance.com’s 2007 Auto Insurance Pricing Report highlights the lowest average auto insurance rates viewed by over 1.4 million car insurance consumers on the 2007* Insurance.com platform. The information comes from actual auto insurance quotes consumers received from over a dozen of the nation’s leading auto insurance companies who participate in Insurance.com’s comparative auto insurance platform.

*Disclaimer
While the Insurance.com 2007 Auto Insurance Pricing Report is a broad indicator of pricing activity in the personal auto insurance marketplace on a per household basis, it is not a comprehensive index as it reflects only the pricing activity of carriers that have participated in the Insurance.com auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, and Massachusetts) and the aggregate profile of consumers who shop using the Insurance.com platform

What Does Your Car Color Say About Your Personality and Car Insurance Premiums?

Do people with red cars really get more speeding tickets than those with blue cars? Do car insurance companies use the color of your car to determine your rates? Do certain colors increase your chance of an accident?

How Fast is that Red Car?
Although no one keeps official statistics, stories and anecdotes help to reinforce the urban legend about red cars getting more tickets and being more expensive to insure. However, according to the urban legends website snopes.com, there is no evidence to support these ideas. The lack of statistics makes it impossible to say which color cars get more tickets, but police and insurance companies deny any link between red cars and an increase in tickets and accidents.

In general, driving the speed limit is always a good idea, no matter what color car you drive. If you keep your red car at or near the limit, your chances of getting a ticket are much smaller. In fact, they are probably the same as the guy next to you driving the speed limit in his purple car.

Color and Personality
It may not affect the number of tickets you receive, but what does your car color say about your personality? CAA Magazine, a publication of the Canadian Automobile Association, looked at the psychology behind your choice of car color. According to their analysis, the color red supposedly signifies you have a “need for speed,” a theory snopes.com says adds to the perception that red cars receive more tickets.

The Color of Money
What about car insurance rates? Does your car insurance company use color to determine your premium? The answer is no.

Some people have suggested that insurers use the Vehicle Identification Number (VIN) to determine the car color and use that information, in part, to set the rate for each car. But car color is not one of the details stored in a VIN. Unless your car insurance company asks you, they really have no idea what color your car is. It has no effect on your rate.

If car color doesn’t matter, what types of things do insurers look at when considering your car? Factors like year, make, model, car body type, and engine size are taken into consideration. The Highway Loss Data Institute (HLDI) maintains reports on insurance losses for different makes and models. Some insurers may use this information to adjust the rate they quote you. However, things such as your driving record and ZIP code are often more important to your rate than the type of car you drive. Of course, your rate quote may be higher if your car is expensive, or lower if it has important safety features like air bags.

If you keep your red car near the speed limit, stop at red lights, yield to oncoming traffic, and make your cell phone calls when you are stopped, you will probably keep your rates low regardless of your car’s color.

So, if you want that red car, go right ahead and get it.

No matter what color car you have, our car insurance rate quote tool can help you find your best rate on car insurance.

Graduating Soon? What about Car Insurance?

After four years of classes, parties, studying, roommates, grades, and loans, you’re finally ready to graduate. You’re as prepared as you can be to start the rest of your life. Or are you? Consider what you know about car insurance, and about how to get a cheap car insurance rate.

There are a number of things car insurance can do to help you through the post-graduation years.

Car Insurance Protects You.
Besides the fact that the law requires it, you really do want car insurance. State mandated car insurance refers to liability insurance—property and bodily injury. This type of car insurance will protect you if you damage a car, person, or property (like a mailbox). Certain types of car insurance can also protect you from uninsured or underinsured drivers who hit you in your car or as a pedestrian. If you’ve just come off your parents’ health insurance and haven’t gotten your own yet, this could be very important.

Car Insurance Can Protect Your Car.
You’ve made sure your coverage is high enough to protect you from personal liability in case you cause an accident, but that’s not all car insurance does. You can also buy two types of car insurance that will help protect your car. Collision insurance pays for damages to your car from accidents you cause, and comprehensive insurance pays for damages to your car from things like theft, storms, and vandalism. If you total your car in an accident you cause, you’ll be glad you have collision or comprehensive car insurance.

Now that you’ve reviewed why you want cheap car insurance, you’ll need to look at your options. You may think that staying on your parents’ car insurance policy is the cheapest option, but you may be surprised to find that it’s not. Here are some things to consider:

You Have Coverage Options.
You may have higher coverages and lower deductibles than you need under your parents’ policy. Besides the fact that you’ll get a discount for already being insured, you can lower your costs by changing your options. Because your car may cost less and your assets are probably lower than your parents’, you can get cheaper car insurance rates by increasing your deductible and lowering your coverages a little.

You Can Save Money.
Most students don’t have many assets, so you can probably just buy small coverage amounts for now. However, keep in mind that many state minimum limits won’t even cover you fully if you damage a new car. The only way to know how much you can save is by shopping around and comparing car insurance rates from as many different companies as possible. One of the easiest ways to do this is by using our free online car insurance quotes tool. You can compare rates from 15 top car insurance companies at once. It’s easier and faster than most other ways of shopping for car insurance.