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Auto Insurance Rates Increased by More than
10% in 2002
but consumers don’t shop for rates
Calif., March 6, 2003 –
InsWeb Corp., one of the largest producers of automobile insurance
in the U.S., announced the updated results for its Auto Insurance
Index based on fourth quarter 2002 data. The Index is designed to
identify and track general pricing trends of personal auto
to data from InsWeb, the index revealed that as a whole, prices for
auto insurance nationwide in 2002 increased on average by
approximately 11% over the prior year. For example, the average
price quoted for a six-month auto insurance policy on InsWeb's
marketplace during 2002 was $1,350 compared to $1,200 during 2001.
Based on this data, consumers could be paying as much as $150 more
for six-month policies when compared to 2001.
from the U.S Department of Labor indicate that the after-tax income
for the average American household in 2001 was approximately
$45,000. "According to this data, the cost of auto insurance
based on a six-month policy in 2002 accounted for approximately 6%
of the average household's income, a full percent increase over the
prior year," said Hussein Enan, Chairman of InsWeb Corporation.
"Auto insurance is a major expenditure for the average
household. A few minutes spent researching alternatives can save
most consumers several hundred dollars, and help them mitigate the
effects of price inflation."
in a survey conducted in March of this year by Progressive Auto
Insurance, researchers found that people were more concerned with
reusing wrapping paper than shopping for lower auto insurance rates.
Auto Insurance studies the rates of different companies each year in
a variety of states, to determine the spread in auto insurance
rates. This year, they
studied the rates of more than 107,000 consumers in 26 states, and
found rates from different companies with comparable coverage could
vary an average of $586 every six months.
in a telephone survey that coincided with their annual rate survey,
Progressive found that an astonishing 73 percent of consumers have
shopped around to save money on groceries, 51 percent have shopped
to save money on paper goods, but only 20 percent have shopped auto
no secret people want to save money and our survey found that
they’ll do things like reuse plastic baggies, charge their friends
a cover charge at parties and even ‘go on a corn diet because
it’s cheap!’” said John Babagallo, product research and
development director for Progressive.
“We want people to know that there may be an easier way to
save a lot more money – just take about 20 minutes or so to shop
around for auto insurance.”
need to keep in mind the “big picture” concept when attempting
to save money. Recycling used wrapping paper and bows from Christmas
packages can be a viable exercise in economizing, but the old adage
of being “penny wise and pound foolish” certainly might apply