If you’re shopping for a new car, insurance is always a consideration. The Insurance Information Institute estimates that the average cost of car insurance will rise only .5% this year and that it will decline by .5% next year. Insurance prices haven’t fallen since 1999.
A number of factors contribute to the lower rates, but mostly it’s the decline in accident rates and the development of safer cars that are making the most impact. Obviously, rates vary widely depending on the type of coverage, but these figures are a good indicator of overall trends. The original article also points out that the insurance industry had a $15.1 billion profit in just the first half of 2006. That makes it sound like rates are plenty high, even with a .5% decrease factored in.
Check out Cars.com’s Insurance Advice section for a comprehensive guide on navigating the complicated waters of car insurance.
[Auto Insurance Rates Stable For Many, USA Today]