The car insurance industry is in a frenzy as consumers demand the best rates and coverage for their cars.
The latest numbers show that the industry has made a remarkable comeback.
According to the latest figures from the Insurance Institute for Highway Safety, the market for auto insurance increased by 3% in 2017, which is an increase of 6% from 2016.
“The premium growth is almost double the average growth from 2015, the last year of the Obama administration,” says Josh Hochberg, the IHSI president and CEO.
“That is a great sign for consumers as they’re trying to negotiate better rates.”
That surge in car insurance has created a huge boom in the number of consumers who are looking for a cheaper option.
“I would say that the number one driver for insurers is the auto insurance market, and I think it’s a great time to start that,” says Scott Kiesel, a spokesman for AAA.
“You can get car insurance for under $3,000.”
Auto insurance rates are typically higher than they were in 2015, but rates have continued to grow since then.
“In the past few years, rates have gotten much higher than normal,” says Kiesel.
In 2017, AAA estimated that the average rate for a driver with a 100% accident-free car was $4,878.
“A little bit of the improvement is due to the higher number of people in the market, but there is a large number of drivers who are getting premium rates for their vehicles,” says Hochbauer.
Hochboer says consumers can be rewarded for choosing a different option, but he cautions that they should be careful about how they select.
“For consumers who choose the best auto insurance, it’s best to choose from multiple brands, not just one,” he says.
“This is a differentiator for consumers that want a good coverage, and it also allows them to compare the companies to one another.”
Consumers who don’t have a car insurance policy should not expect to pay the best rate.
“When people go through the hassle of picking the best policy they can, they’re going to get a premium rate that is much higher,” Hochbeers says.
Hire a Certified Financial Planner to help with the decision.
A certified financial planner can help with any financial decision, including car insurance, if the insurer does not provide a free auto insurance quote.
A free quote can be a great way to make sure that the right coverage is for you, says Mark Hirsch, a certified financial advisor with The Hirsch Financial Group.
Hirsch says that consumers should be wary of companies that offer no insurance.
“These companies often do not have an adequate background check, so if they don’t want to provide a quote, they are not going to provide one,” says he.
“Some of these companies have some pretty bad credit.
So if you’re not going buy a car from these companies, you’re probably not going get a good auto insurance rate.”
To find the best car insurance rate, it is important to get quotes from reputable companies.
“We’re always going to find cheaper insurance companies than the ones that offer bad coverage,” says Dr. Andrew Sorkin, CEO of the National Insurance Institute.
“But we are finding more and more companies offering very good coverage and offering cheaper rates than the other insurance companies.”
He also recommends that consumers check out local insurance websites.
“Many people have a better understanding of the insurance rates that are available and that’s why they’re interested in a car,” he said.