Auto Insurance Rates Jump for 3rd Consecutive Quarter

Auto insurance rates continued to raise throughout the third quarter of this year, according to a study by Insurance.com, the largest online auto insurance agency in the United States.

Insurance.com’s RateWatcher Car Insurance found that the lowest car insurance quotes, on average, were about 3% over the previous quarter, rising from $ 1893 per year to $ 1949 per year. This rise follows a 3% increase from 3.4% in the second quarter.

RateWatcher is based on real-time quotations for auto insurance for more than a dozen insurance companies to consumers to Insurance.com during the third quarter. It is the third consecutive quarter of rate increases, causing concern among cash strapped motorists who are already struggling in this difficult economy.

"The increase in rates this quarter represents a trend that will most likely continue into 2009," said Sam Belden, VP-strategic alliances in Insurance.com. "The driver must have some time to understand how the type of vehicle they drive, and their driving habits affect their rates."

The rates of car insurance vary from state to state, and some local trading experienced increases in the third quarter were higher than average. For example, Washington, DC had a 8.3% increase in rates, while Nebraska and Rhode Island saw rates jump 8% and 7.4% respectively.

"There are many things that consumers can do to save on car insurance, like the comparison of rates from several companies before you renew a policy of driving more carefully, and never let a current policy of delay," he said Belden. "When a driver does not have continuous coverage, he or she may not qualify for the best prices available, and can be placed in the same category of risk with drivers who have violations and accidents. This can cost a driver a lot more money over years. "

Additional findings

* Among the top 10 states seeing the sharpest increase in the rates of car insurance in the 3rd quarter were Washington, DC (up 8.3%), Nebraska (up 8%), Rhode Island (until 7 4%), Kansas (up 6.6%) and Florida (up 4.9%).
* Prices fell in 10 states compared with the 2nd quarter. The largest decreases were in North Dakota (7.8%), West Virginia (7%) and Wyoming (4.5%).
* In nine states, the rates were essentially unchanged, ranging in less than one percent.

The full report is available on www.insurance.com / RateWatcher.