Insurance Companies Rate Increases and Decreases
Click below to see which insurance companies lowered auto insurance rates. Overall, rates continue to fall in 2005, BUT it's less than 2%, (1.82% to be exact). In fact, one company has raised their rates. Is this the start of a trend?
Still Paying Too Much? What you may not beware of is that car insurance rates went up by 15.76% in 2002 and by 14.09% in 2003, totaling a 29.85% increase.
So lowering rates an "overall" 12.6% in 2004 and 1.82% in 2005 (totaling 14.42%) means drivers got a 15.43% increase since 2002, while the insurance companies are reporting record profits.
This is why I'm encouraging all drivers not to pay more than they have to, if another insurance company will charge you less. Then the insurance companies,
losing business, will have to get more competitive and really start lowering their rates.
"Overall" My Rate Increased: It is also important to know what's meant by an "overall" rate decrease. What that means is each insurance company reviewed the
areas where they were profitable and the areas where they were not profitable. Then they increased rates in the areas where they lost money and decreased rates in the areas they made money, for an "overall" rate decrease of 12%.
For Example: An insurance company may have lost money in the Toronto market and increased their rates by 5%, but made money in the Barrie area and lowered rates by 17%, resulting in an "overall" rate decrease of 12%.
Bottom Line: In fact, you may have been slammed with an increase if you live in the area where your insurance company was losing money. Ironically, in order for companies to provide a 12% overall "DECREASE" they had to "INCREASE" rates for thousands of drivers.
You need to check your rate through www.InsuranceHotline.com and find which insurance company lowered their rates the most for you.