February 13, 2011

Why Americans Can Expect To Pay More For Auto Insurance In 2011

The harsh reality that auto insurance quotes may be going up in 2011 seems like one more frustration that may be showing up in your mailbox in the near future. There are several reasons for higher auto insurance, some of which may apply to your situation. Your personal driving habits and insurance history can influence premiums, but so can your home location, and the fact that health insurance premiums are also in the increase.

If you tend to accumulate driving tickets for speeding or disregarding the driving rules, you will be considered a higher risk and can expect your increased rates to reflect that. It may take as long as 3 years to wipe those indiscretions from your driving record and don't expect much mercy until they are completely gone. Drivers who file more than the accepted "free" claim may also pay a price in higher auto insurance. The fact that you are submitting more claims is a red flag to the insurance company, even if none of the accidents were your fault. You appear to be really reckless or really unlucky. Either way, you can expect your rates to go up.

One of the most significant factors in receiving higher auto insurance quotes in 2011 is the fact that health insurance expenses are tied into the equation. The high price of bodily injury is always part of the equation, and rising health costs, from medications to procedures to hospitalization and rehabilitation charges are all forcing the health insurance industry to raise its premiums. As a result, auto insurance quotes will reflect the increased pay-out risk through raising your rates.

Another important consideration is your geographic location. If you have recently moved, you may have unknowingly entered an area that is statistically known for more accident claims, thefts, or vandalism. Insurance companies factor these figures into the rates they charge residents. Maybe you haven't moved, but your community has shifted statistically. Even if you have never filed a claim, you may now live in an area where it is more probable that you will need to file, and that means the insurance company will be charging you higher auto insurance in the near future.

Finally, if you have stayed with one insurance company forever, you may have fallen into a category known as "captive customers." This means your agent thinks you will stay with this company no matter how poorly you are treated because of a loyalty factor. You are at risk of being taken advantage of and seeing your rates increased, simply because the insurers think they can get away with this. Shop around for the best deals and you can fight back against higher auto insurance.