There are probably plenty of things out there you didn't know. For example, did you know that there are 18 different animal shapes in the Animal Crackers cookie zoo? Or that there are no clocks in Las Vegas casinos? Or how about the fact that on average, one car out of every 230 will be stolen this year? Maybe, maybe not. These facts are unlikely to have any relevance in your daily life. But did you know that auto insurance rates have never been cheaper?
Okay, maybe it's unwise to say never. Inflation being what it is, there's almost always a time when something was cheaper-even if you have to trace it back to the days of the barter system! Auto insurance rates have dropped dramatically since this fall, however. Recent consumer studies performed by Insurance.com show that on average, auto insurance premiums have fallen an astounding $100 or more a year since 2008, and those are savings that most drivers aren't seeing.
That same study revealed that 22% of consumers were shopping around for a new auto insurance policy because their own was raising their rates on their renewal. They were shocked to discover when they started looking around that their customer loyalty was being rewarded with rising prices and the deliberate omission of data-in this case, falling auto insurance rates for their new customers. Are loyal customers being forced to pick up the slack so their insurance provider can bring in new business?
Not at all. As a matter of fact, the current drop in auto insurance rates is directly attributable to several measurable market factors. High on this list is the amount of time Americans are spending out on the roads. Courtesy of a rapidly growing threat to the ozone layer (or at least, a rapidly widening consumer market that knows about it) the environmental awareness of the potential consequences of spending hours a day on the highway in a four wheel monster and the once-again rising cost of gas, Americans are spending less time on the roads and more time exploring alternative modes of transportation.
Less time on the highway means less chance of being involved in an accident and, in turn, goes a long way to lower the cost of your auto insurance policy. Auto insurance companies are happy to reward you for the perceived savings (sometimes it doesn't matter how much time you spend on the road-bad things happen to good people all the time) in discounts for your auto insurance. That means that your auto insurance is $100 cheaper than it was last fall!
Auto insurance companies are happily offering this new and improved rate to their new customers, but are their old ones seeing the savings? Generally not. Auto insurance providers like their profit margins where they are, and they know that most people are creatures of habit. That means as long as you're comfortable with a company you're probably not going to go running off to the competition. That gives them carte blanche when it comes to deciding how much they're going to charge you for your auto insurance.
It's up to you to exercise you're knowledge and stop this cycle in its track. Take the Internet for a ride or pick up the phone and find out how much you could be saving on your auto insurance by changing providers. Don't you have something better to do with your money than pad their pockets?
