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Car Insurance Rate Quote Factors
As a driver, you know that having car insurance is both critical and
costly. Many insurance shoppers are suprised by how high their auto owners
insurance costs are when they get a car insurance quote.
If you are looking for a quick online car insurance quote, feel free to try
InsureMe’s insurance referral service by filling out the "Get a free quote"
box to the left. InsureMe will collect your information and get you an
automobile insurance quote from up to five different insurance agents.
Your car insurance quote reflects the cost of several expected
automobile-related expenses. Continuous rate increases for auto insurance
can be attributed to numerous factors, including medical and legal costs,
accidents, theft, fraud, drunk driving, auto repairs and even insurance
company expenses.
- Medical Expenses - Each year, there are more than
two million car accidents involving personal injury. Typical costs for
treating an auto accident victim range from $6,000 to $9,000, but can
easily run into the tens of thousands of dollars. This, paired with the
fact that the cost of auto injury claims is rising by as much as 30
percent in some states, translates into higher auto owner’s insurance
premiums for everyone.
- Legal Expenses - The average jury award for
vehicular liability cases continues to rise, putting additional upward
pressure on auto insurance rates. The average jury award in auto
liability cases recently rose 44%, from $187,000 in 1994 to $269,000 in
2000. Many experts feel these costs will continue to rise in the future
and drive automobile insurance quotes up even further.
- Accidents - Car accidents remain the leading cause
of death among Americans 1-34 years of age. According to the U.S.
Department of Transportation, these deaths cost our society more than
$150 billion each year. Some behaviors leading to accidents and adding
to this total cost are alcohol abuse, high-speed driving, and driving
without wearing a seat belt.
- Theft - More than 1.2 million estimated motor
vehicle thefts occurred in 2001, a 5.7 percent increase over the number
of cars stolen in the year 2000. Motor vehicles were stolen at a rate of
nearly 370 per 100,000 inhabitants during 2001; trucks and buses were
stolen at a rate of 86.5 per 100,000 persons, according to the U.S.
Department of Justice Federal Bureau of Investigation. Based on that
estimated number of motor vehicles stolen in 2001, the estimated dollar
value of vehicles stolen nationwide was almost $8.2 billion.
- Fraud – As the number two crime in America, fraud
costs consumers an estimated $30 billion annually, according to the
National Insurance Crime Bureau. The most common fraud schemes involve
insurance, and include bodily injury fraud, auto repair fraud,
homeowner's claim fraud, and workers compensation fraud. When looking
for a quick car insurance quote, make sure you talk to a licensed
insurance agent. This will reduce your chances of being a victim of
fraud. InsureMe's online car insurance quoting service verifies the
licensure of all of its referring agents in order to protect you from
fraud.
- Drunk Driving - Impaired driving will affect one in
three Americans during their lifetime, according to the National Center
for Injury Prevention and Control. Alcohol-related car crashes kill
someone in the United States every 32 minutes, and non-fatally injure
someone every two minutes. 16,653 people in the U.S. died in
alcohol-related motor vehicle crashes, during 2001. This represents 40
percent of all traffic-related deaths.
- Auto Repairs - Auto-damage liability has increased
with advances in technology, construction and design. Through the years,
we have seen automotive innovations such as lighter, smaller vehicles,
thinner glass and unibody construction. Consequently, automobile repair
costs have risen, since the cost of parts and labor associated with
repairs have increased. Depending on the type of car you purchase, you
may notice higher repair costs—and therefore higher car insurance
quotes.
- Insurance Company Expenses - Inflation continues to
affect the insurance industry. The increasing costs of industry tasks
such insurance delivery, policy service, and claims settlement are all
factors that further increase the cost of automobile insurance—and
therefore your car insurance quote.
Understanding the factors that contribute to rising car insurance rates
will make you a more savvy consumer—helping you to find the most affordable
car insurance out there!
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