2006 Auto Insurance Pricing Report


In its survey of 47 states, Insurance.com found an overall decline in the 2006 national average for auto insurance rates returned for households, as well as some interesting insights into state-specific pricing and general insurance premium trends. Some of the states where drivers benefited the most from the 2006 car insurance decline were New Jersey, who paid an average of $2,736.71 for car insurance – a 26.6% decrease from 2005. And Minnesota, who paid an average of $1,658.07 – a 18.8% decrease from 2005.



So how can all consumers save even more money on their auto insurance? Consider these basic tips:
1. Shop aroundYou may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary quite dramatically (by hundreds of dollars) between different insurers. Make sure your current company is right for you, or find a better fit with a new company.
2. Increase your deductibleSometimes you can reduce your annual premium by 10 percent or more if you increase your deductible. However, if you do this, make sure you have the financial resources to handle the larger deductible when the time comes.
3. Ask about multifamily/multi-policy discounts.A discount may apply to your auto insurance if you insure multiple cars under the same policy or with the same company. You also may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowners).
4. Keep an eye on your credit report.Your credit history can often be an important factor for some auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.