Why Are Premiums So Expensive this Year?
As many of you have certainly already noticed, thus far in 2009, auto insurance premiums have gone a lot higher. This is primarily due to the continuing economic problems we are having. Unfortunately, they are not yet as high as they will likely get.
The average national cost of car insurance is about $1,796. As gas prices continue to rise as well, most believe that it will be more and more expensive to insure vehicles, especially if one does so monthly.
There are a number of other contributing factors as well. For instance, more people are driving and there are more vehicles out there than there ever have been, in spite of the high cost of gas. Thus, consumer demands for coverage are going up too. That can be a good thing, though. It leads a lot of insurers to offer competitive rates.
The rise of insurance fraud and claims for personal injury are making premiums increase as well.
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