UPDATED: Feb 25, 2020
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The Insurance Information Institute (I.I.I.) is reporting the average auto insurance premium will drop roughly 0.5 percent in 2007. The average annual cost for an auto insurance premium is estimated to be $847.00. The change amounts to a $4.00 per policy savings over 2006 premiums, or barely enough for a Starbucks Caffe Latte.
The I.I.I. credits the decrease in auto insurance premiums to a competitive marketplace, declining claim frequency, safer vehicles and innovative underwriting among other factors. The millions of baby boomers entering their safest driving years are also cited as a factor in the decline of premiums.
There are several ways consumers can further decrease their auto insurance premiums in 2007:
- Increase Deductibles – This can result in savings of 25% or more.
- Maintain Good Credit – Insurance companies are increasingly using credit-based insurance scores to determine premiums.
- Shop for Better Rates – The current competitive marketplace and convenience of the Internet make this a simple way to save.
So enjoy your extra $4.00 next year. And if you decide to drop the savings on that Starbucks, try not to drive with it in your lap.