Car Insurance at the Mouse Click
Most people in developed world have great love for their automobiles. Americans are at the top of the list. According to the Department of Labor, they spend on their car the same amount they spend on food and health expenses combined. After paying the mortgage, owning a car is the single most expensive item on an average household budget. Where does that money go?
The biggest part of the cost goes into the purchase or lease of the car. The next are gas and oil, followed by the insurance.
A recently released the result of its study of the cost of owning a car. They found out that that the average cost of owning an average car in 2010 was $8,487 per year, 4.8 percents up from the previous year. The biggest increase was in the cost of fuel and tires. Insurance costs went up by 5.7 percents to $1,031 for a typical policy. According to the National Association of Insurance Commissioners, the most expensive state to insure a car is D.C., followed by New Jersey, Louisiana and New York. Speed AutoClicker
Can insurance companies have been hard hit by the recession. Their regular customers have been deserting them in desperate search to find cheaper deals and save few dollars on this high budget item. But, customers are in trouble too. They are finding that their insurance rate depends on the credit rating they have. It sounds illogical, but the less money people have, the more they are asked to pay.
People who are not in need to save, have in general good credit rating and are able to negotiate better insurance, since they are considered lower risk. While some consumer advocates have been raising this issue as unfair, insurance companies claim that it is a question of personal responsibility to pay one’s debts.
It could be that the recession has one good side: people are re-thinking their spending habits. Those with bad credit rating are forced to apply for pre-paid credit cards in order to re-build the credit rating, which forces them to spend only what they already have.
The auto insurance companies are coming up with a range of deals in order to attract customers, and the choice is huge. Experts recommend that a consumer let his mouse do the work and research, and to ask for online insurance quote from at least ten companies. Once the costs of different options are known, a person can sit down and decide which of those options are necessary and which are not, and come up with a price he or she can live with. Of course, the price is not the only consideration.
How an insurance company behaves once there is an actual claim is another important issue. Asking friends and family, and checking various blogs on the internet would help learn if making a claim would be a hassle-free deal, or a nightmare.