Automobile owners are again the target of price rises in the USA. If gas prices aren’t enough to cripple you then the fact that auto insurance is on the rise will. Over the recent years there has been a steady rise in insurance premiums for all road vehicles. There are many reasons for this, but it does not hide the fact that motorists are being penalised as they are an easy target for quick tax and revenue increases.
Firstly we have seen the rises at gas station pumps with prices doubling over the last five years, also there has been an increase in road tax as well. Now it seems that the insurance companies are cashing in on the trend as well. With prices more than doubling over the last few years it has lead to motorists tightening their pockets even more.
The reason is because there are a lot of uninsured drivers on the roads and this cost has to be passed on to the premiums. So drivers who pay their insurance have to fork out extra to cover the cost of people who do not have insurance protection.
Also with the price of vehicles getting more expensive and needing more specialist parts it is not as cheap to fix them as it once was.
How can motorists save money?
A lot of drivers feel that it is too much hassle to shop around and find the cheapest quotes. Most people tend to stick with the same insurance company and simply let them auto renew their policy. The fact is that due to this laziness they feel that they are getting a good deal when actually they aren’t. Most premiums that are automatically renewed do not show a significant drop in price leaving the policyholder to pick up the tab.
If you want to get the best deal around then every year you should phone up a few companies or even conduct an Internet search. This will make sure that you get the cheapest deal around and do not fall in the trap that’s insurance companies like to put you in.
You can save up to $300-$400 on your renewal premium just by looking at other companies, in fact by telling your own insurance company that you are looking elsewhere they may even give you a large discount just to keep you as a customer.
So in tough economic times like the current situation we are in now spending wisely and saving money on all your outgoings will ease any financial pressure.