Count your blessings (and the extra cash in your wallet) if you’re planning on buying car insurance in the very near future. Start shopping around, because in the next few weeks, insurance rates are going to be the lowest they’ve been in more than two years.
Let’s look at the numbers. In April, the lowest average annual rate for car insurance dropped from $1,812 to $1,798 in May. Back in May of 2009, the average rate was $1,871.
“This is great news for the growing number of savvy drivers shopping and comparing car insurance quotes,” says Rob Klapper, CEO, insurance.com. “They know there is always a chance to save big because rates constantly change for various reasons – from events in the driver’s personal life, like buying a home or having a birthday, to fluctuations in the insurance market.”
But drivers should remember to look at the other side of the coin as well. According to Klapper, a disconcerting fact is the type of coverage being chosen is a factor that’s driving rates lower.
“We’re seeing more and more drivers choosing minimum coverage or liability-only coverage when they shop and compare quotes,” says Klapper. “It makes sense, since many people are on tight budgets in this down economy and car insurance is one of the easiest places to save money. But, inevitably, this trend only adds to a growing group of underinsured drivers on the road.”
Drivers don’t always look at the big picture – they often see the lower dollar amounts and base their decision on that factor alone. You should always think to what could happen if you were to ever get into a serious accident, which can result in medical expenses that exceed an underinsured driver’s policy limits. What’s left on the bill at the end of the day, you’ve got to pony up the difference – and it can get pricey. And let’s not even get started on what could happen if you were found at fault in regards to an accident and your insurance couldn’t back you up. Insurance.com always recommends drivers buy coverage that matches your financial risk.
[Source: Cars For Girls]