Reader’s Question:

Are the auto insurance quotes I get online the average rates?

Ray

Phoenix, AZ

According to the 2006 report of the National Association of Insurance Commissioners (NAIC), residents in Arizona spent an average of $913 on car auto insurance. This places them on the fourteenth rank among the states that have the highest insurance premiums. However, there has been a noted decrease of 1.9% in the last quarter of 2008 since the price of gasoline has increased, which led to infrequent use of cars. This essentially led to fewer cars in the streets of Arizona, hence the lower rates. The increase in number of speed-enforcement cameras has also contributed to lower traffic fatalities.

While there has been lower auto insurance rates, consumers still have a hard time maintaining their auto insurance coverage and thus sacrifice other needs. That is why keeping updated with the going rates is very vital, so that you know whether or not what you are paying is reasonable. This can be done by getting auto insurance quotes from companies accredited to do business in your area. Bear in mind, though, that these quotes are mere approximations of the actual rates since other statutory taxes have not yet been factored in. Rating system also vary from company to company, so the auto insurance quotes you get from one insurer will not be necessarily be close to what the others will assess you with.