Car Insurance Is Getting Cheaper And Cheaper

Last Updated on October 12, 2020

Since the 1990s, car insurance has been growing increasingly affordable in the United States. This improvement can be seen by both low and middle-income families in the country. A recent report published by the Insurance Research Council (IRC) concluded that all but six states (including Washington D.C.) saw an improvement in auto insurance affordability from 2001 through 2010.cheaper car insurance rates

The data used by the Insurance Research Council came from the National Association of Insurance Commissioners as well as the United States Census Bureau. This study compared car insurance expenditures statewide with income data from each state in order to measure and track the changes in the affordability of car insurance policies.

The ratio of car insurance prices to income data shows that there was a large improvement in affordability for both low and middle-income groups.

Affordability Issues In The 50 States

There were six states in the United States that saw an increase in the ratio of car insurance prices to income data. These states were Wyoming, Florida, Louisiana, Michigan, Montana, and Alaska.  Excessive regulation, uninsured drivers, and other legislative factors can be blamed for the increased rates seen in those six states.

For the rest of the country, insurance rates dropped. There were several factors that showed to have an effect on the affordability of car insurance. Some of these include:

  • A more competitive car insurance market
  • Less regulation for insurance prices
  • A smaller residual market
  • A moderate amount of compensation for injuries
  • A lower rate of motorists who are uninsured
  • Lower unemployment rates

Saving Money On Your Car Insurance

If you are like most people, you are looking for ways to save money any way that you can. One of the most expensive things about owning a vehicle is paying for the cost of insurance. After reading this report from the IRC, you may be wondering why your car insurance rates haven’t gotten any cheaper.

There are several ways that you can save money on your car insurance policy. Here are a few tips for finding a policy that will fit within your budget.

1. Shop Around

One of the most important things that you can do when you are trying to save money on your car insurance is to make sure that you shop around. You will want to compare quotes from several different insurance companies before you choose one. You can go to an auto insurance comparison site (like Insurance Panda) and put in your information. The site will then provide you with quotes from several different companies. This is a great way to get a lot of quotes at once.

Another option is to contact several insurance companies individually. While this process may be time-consuming, it can be well worth the time as you may be able to save a lot of money on your insurance policy. There are some local insurance companies who may not be a part of the comparison sites who will be able to provide you with a lower price for your policy.

2. Drive Carefully

One of the many reasons that you will have to pay more for your car insurance is because you are not a safe driver. If you have several speeding tickets on your driving record you can expect to pay more for your insurance policy. In addition, if you have been involved in an accident in the past few years, your policy is going to cost you more.

Being a safe driver is the best way to get a good rate for your auto insurance policy.

3. Ask for Discounts

Many people do not realize that auto insurance companies will typically offer discounts for a number of different things. If you are insuring one of your children, ask for a student driver discount. These are typically provided to students who maintain a certain grade point average while they are still in school.

Many insurance companies will also provide you with a discount for carrying more than one type of policy with them. Consider bundling your different insurance policies such as home or renters insurance along with your auto insurance to help you save money.

Take Advantage Of These Cheaper Insurance Rates

While studies have shown that the rates for car insurance policies are becoming more affordable, the fact of the matter is that an insurance policy for your vehicle can be one of the most expensive things about owning a vehicle.

When shopping for car insurance make sure that you compare not only the price of the policy but the amount of coverage that you get for that price as well. You will want to make sure that you are getting the coverage that you need at a price that you can afford.

If you have a bad driving record, consider taking a defensive driving course. These courses will help you get the points off of your driving record faster and this can greatly reduce the amount you pay for your car insurance premiums.

Finally, make sure that you ask for any discounts that are offered by the insurance company. You may be surprised at the myriad of different discounts you are eligible for.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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