Average Price for Auto Insurance Down 0.5%

With inflation everywhere in the United States, it’s great to see some respite when it comes to car insurance rates. According to InsWeb, the median rate for auto insurance premiums went down 0.5% over the past six months, to about $702 on average nationally.

Many states are currently considering changes that may provide additional flexibility in pricing for auto insurance, such as pay-as-you-go systems, which allow drivers to pay for chunks of car insurance based on mileage. Once a driver uses up, say, 10,000 miles, he can purchase another policy. In the meantime, many policyholders may have saved a few dollars over the past six months on their car insurance policies without making any changes.

Seeing Savings for Women and Seniors
While the savings were across the board in general, they were even greater for certain demographics. Women, over the past 6 months, saved 5% over what men paid on average for a car insurance premium. While women paid approximately $683 for a 6 month policy, men paid $720. Typically women pay less for car insurance because auto insurers consider women to be less risky drivers than men, so this savings comes as no surprise.

The fact that teen drivers under 19 still pay more for car insurance hasn’t changed with the recent price decreases for insurance. The average policy rate for a teen driver was close to $1,300, or double what any other age group pays. Seniors, on the other hand, at least those 60 to 74, paid just $596 for a 6 month policy. Past age 74, rates may start to rise, as older drivers are more at risk of being involved in a car accident.

Recommendations to Save
InsWeb said that while most drivers saved at least a little money on insurance over the past 6 months, many drivers are simply not aware of how they can get even more money back. The company had these recommendations for how to save on car insurance.

1. Get Discounts: From Good Driver to Airbag Discounts, there are many available with most insurers. Ask your auto insurance company what discounts you qualify for. You could save up to 20%.

2. Higher Deductible: By raising your deductible, you will pay less for your premium. Keep in mind, though, that you need to be able to pay that deductible should you get into an accident down the road.

3. Multiple Insurance Policies: If you have a home insurance policy, keep it with the same company as your auto insurance to realize more savings.

4. Lump Sum Payment: Opting for the lump sum payment rather than spreading out your car insurance premium over 6 months can save you up to $100 every year.

5. Compare Rates: InsWeb recommends comparing rates at least once a year to ensure you are getting the best rate for your car insurance. Get at least 3 to 5 different quotes so you can compare them against one another.