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Rates still rising

The article reports the rise of 5% in insurance premiums in the twelve months up to November 2010.

Author: Grace Oaks

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Living in a capitalist society, we are used to the idea of corporations making a profit. That's what keeps the investors happy. But when the country is doing its best to recover from one of the worst economic slumps of the last fifty and more years, it comes as hard news to see insurance companies increasing their premium rates. We are all worried about whether we can keep our jobs or, if unemployed, find new jobs. Credit has all but dried up. Banks seem intent on foreclosing every mortgage that's underwater putting our homes at risk. So when premiums increase on our vehicles - the one thing we need to be reliable and available to us - we are right to feel angry. In fact, during the times of plenty when the credit boom was at its highest, the rates were stable. Some actually fell in real terms because the volume of insurance business generated higher profits even though the rates were reduced. So what's the story on all these increases now times are hard?

Well, it's difficult to explain. It's even harder to justify. All the statistics show we are driving less. More people are out of work so there's less commuting. Gas prices are still not cheap, particularly with family budgets under pressure. This means we stay home more. The result? Way fewer accidents! Add in the fact that vehicles have never been safer. All that safety equipment fitted as standard and those recalls (when they come) have reduced the number of accidents in which people are injured. Now this should be encouraging the insurers to reduce rates. If we drive less, the risk of accidents falls. That means fewer claims to pay on. So the insurers need less money in hand. . . Actually, some insurers have reduced their rates or increased their discounts. If you shop around, you can sometimes find good rates buried in the pile of quotes. But the Bureau of Labor Statistics reported the average premiums year-on-year for November rose by 5%. In a recession, rates rose 5% in a year? That means the insurers are not passing on any saving they are making while pushing up the prices.

So here's a story to encourage you. In California, there's a company called Mercury. This is not the state's most popular insurer. It has a poor claims record and was recently caught lobbying hard for changes in the law that would have damaged consumer rights. So there was a big political campaign against it and, wonders never cease, it has responded by lowering its rates and is offering free coverage for towing to encourage Californians to buy its policies again. Consumers have power if only they can get their act together. This should encourage everyone out there to look carefully at the value offered when those all-important auto insurance quotes come in. This is not a time to be submissive. Your finances are under pressure. Insurance companies should not be allowed to gouge extra dollars from you at this time. Check in with your state's Insurance Commissioner to see what's happening to local rates and make informed decisions on where to buy your next auto insurance policy.

About Author

With people around the world thanking him for his professional approach of discussing the topic, Vasia is a frequent writer for http://www.insursearchonline.com/auto-insurance-rates-still-rising.html and is happy to share his vision with you there.

Article Source: http://www.1888articles.com/author-grace-oaks-24697.html

Rates still rising