Majority of people have been reconsidering their plans to buy auto insurance policies since the recession. The auto insurance rates have been affected by unemployment that resulted from recession. With increase in unemployment, the affordability rates of the people have decreased and so many are reducing the coverage on insurance in order to lower the costs of buying an auto insurance policy.
Recession and auto insurance
As per reports, in the first quarter of this year, 2011; people have cut back drastically on their car insurance policies so as to save money on that. This study has also found that there has been an increase from 53 to 63 % on the older vehicles that have chosen no collision or comprehensive coverage, thereby saving almost around $229 per year. However, if the new cars are to be considered, most have kept the full coverage. However, this is because the banks or the lien holders actually required them to have it and people didn’t even want to risk their new car. In fact, it has been seen that in the period between that of 2006 to 2009, the average auto insurance for the comparatively newer vehicles is almost $913 and for those cars which were 10-years and older is $528.
The decrease in the consumer spending has impacted the auto insurance industry both in the direct and indirect manner. This is the case as the available credit of the consumers has lowered not only the automobile sales but also the sales of the insurance policies. This has negatively affected the other related industries.
Other than the problem regarding the affordability, there are also some other factors that have contributed to the decrease in the number of the purchased auto insurance plans. The people affected by the unemployment has been forced to deliberately cut back on their expenses and thus majority of the consumers have decided to keep a single car insurance policy rather than insuring the second or the third one so as to save money.
Finding affordable auto insurance during recession
During the recession, as the affordability of the people has decreased, it becomes important to find affordable auto insurance policies. The best way to get affordable auto insurance is to check and compare different offers and maintain a good credit rating. Only if the offers can be compared will you be able to understand the difference amongst the offers, the affordable terms and conditions, thereby saving money on the policies.
Other than this, you will also have to talk to the insurance company in order to find out if there are any discounts available. Furthermore, use your certificates in order to get additional discounts on the auto insurance policies. If you had been a good student, you may be able to avail of additional discount.