In the middle of Auto insurance prices rise in 2021, nearly half of American adults think their rates are fair or very fair. However, according to a new investigation from YouGov for Forbes Advisor, some experts disagree.
Besides a sharp drop in 2020 due to auto insurance companies offering refunds and credits to provide financial relief, auto insurance rates have been rising steadily for decades, according to the data from the US Bureau of Labor Statistics. This is because the prices of auto repairs and medical bills have driven up auto insurance premiums.
But the survey also found that among drivers who felt auto insurance rates were unfair, about half had taken no action to reduce their auto insurance rates in the past 12 months.
“While about half of consumers think auto insurance rates are fair, the idea of fairness tends to crumble when people are asked specifically about the fairness of specific pricing factors, such as the use of credit, ”said Amy Danise, director of Forbes Advisor. insurance analyst. “This may be because consumers are generally unaware of the factors used in pricing auto insurance.”
If you want to see how your auto insurance prices compare or see cheap auto insurance options, visit Credible to see personalized offers from multiple auto insurance providers at the same time.
3 ways to lower your auto insurance rate
Drivers have learned, according to the survey, that a variety of factors generally contribute to your auto insurance rates. These include your age, driving record, credit score, location, and more. Respondents to the survey largely agreed that some of the factors unrelated to driving a vehicle (occupation, age) should not be taken into account when pricing their auto insurance.
If you’re looking for ways to lower your insurance bill, you will need to take action. Consider the following three factors to help lower your insurance costs:
- Improve your credit rating
- Changing your current policy
- Shop for Better Rates
1. Improve your credit rating:
Looking at the details, 69% of Americans disliked the use of their credit score to determine premium payments, according to the survey. In some states, your credit score can help you get a better rate, so improving it can be to your advantage when it comes to auto insurance.
This is true for all states except California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah, which prohibit or regulate the use of credit scores. by car insurance companies, according to Andrew Latham, editor at SuperMoney, a financial services comparison site.
2. Modification of your current policy
If the previously mentioned factors for a driver change, they may need to change auto insurance company accordingly. A company that may have offered the best rates before may not have the best rates for a new driver profile.
“People may not realize that the company that offered them a great rate a few years ago is no longer competitively priced for them,” said Danise. “As driving records, the availability of credits and discounts change, the cheapest businesses for a particular person also change.”
Because auto insurance providers measure factors differently, whoever can offer a fair price for one driver may not have the best rates for another. Visit Credible to see multiple offers at once from different auto insurance companies nationwide and determine which auto insurance quote is best for you.
3. Shop for better rates
Since your credit score, driving history, and a variety of other factors influence your premium rates, it’s a good idea to shop around with various auto insurance coverage providers to make sure you always get the right amount. best coverage available.
“We cannot expect consumers to be aware of all the reasons they may be overpaying for auto insurance,” Danise said. “People have other things to do, after all. But buying new auto insurance quotes every few years could really be an eye-opener for a lot of people.”
Visit Credible to compare multiple vendors at once and find affordable auto insurance with quotes personalized for you in minutes. You can find cheap auto insurance and compare auto insurance rates, deductibles, discounts, and other coverage options.
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