Insurance Rates Hit Lowest Point in Year

According to Insurance.com’s RateWatch for car insurance, average annual auto insurance rates held steady in May 2009 at $1,871 – the lowest they have been in more than a year. This is good news for drivers who had been paying as much as $1,950 in September 2008, and it’s great news for drivers looking to buy a car.

“While new car sales are still down compared with last year, car shopping website Edmunds.com predicts that June new car sales will be up almost 9% over May 2009,” said Sam Belden, Vice President at Insurance.com. “Whether you are shopping for a new or used car, spending 30 minutes comparing auto insurance can save thousands of dollars in the long run.”

Insurance.com offers these tips for drivers looking to purchase new or used cars:

Consider car choice
All cars are not created equal. Small or large, old or new, the type of car you drive affects the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. If you buy a hybrid, some insurance companies offer discounts of up to 10% off your premium.

Look for safety features
Safety features can also cut your insurance costs. Many carriers offer “Safe Car” discounts of 5% or more for air bags, antilock brakes, and antitheft devices.

Compare rates online before buying a car
A State Farm® agent only quotes State Farm. Same for Allstate®. So what are the chances their agents will tell you to shop around for the best deal? Shopping online with companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance side-by-side.

Older car? Drop collision.
Have a car that's 7 or 8 years old or worth less than $2,500? It’s time to start thinking about taking the risk and dropping comp and collision from your policy. Chances are your deductible is closing in on the value of your car and a major collision will send you to the dealership, anyway.

Minimum liability? Not enough.
You may think you can only afford the minimum car insurance required by law. But, in some states – Ohio, Pennsylvania, South Carolina, Nevada, and New Jersey– the state-mandated limits are ridiculously low. There's a good chance those minimums won’t come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.

The RateWatch report data is based on the lowest car insurance rates quoted to consumers in each state, from more than a dozen of the nation's leading auto insurers. The complete report is available at www.insurance.com/ratewatch.