Insurance rates decreasing: Right time to shop car insurance online

With gas prices hovering over $2 a gallon, and economy declining, the cost of driving is taking a toll on American’s pocketbooks. But one positive is emerging from our nation’s current economic status: car insurance rates are dropping.

The average rate for car insurance has dropped to $1,879 a year, according to Ratewatch research. The overall average has fallen $103 since its 12-month high in October 2008.

While the average fell only 0.5% in March, that came on the heels of December’s 3.2% plunge. If you break down the numbers state by state, 19 states saw insurance rates fall last month. Arizona saw the largest rate decrease (5.1%) and South Dakota had the largest hike (6.7%).

This research also provides a case study in what happens when competitive forces are unleashed and markets are allowed to operate more freely. And while some drivers are worse off, the vast majority of consumers have gained from the changes.

Auto insurance prices have been declining around the country, lower rates in 19 states were a welcome sight. March auto rates continued to decline. The lowest annual car insurance quotes, on average, decreased from $1,888 per year to $1,879 annually. The highest rates in the past 12 months were quoted in October 2008. Rates increased 8% in total in 2008.

If you break down the numbers state by state, 19 states saw insurance rates fall last month. Arizona saw the largest rate decrease (-5.1%), Virginia (-4.5%), and South Dakota had the largest hike (+6.7%), following Nebraska and Minnesota with (+5.9%).

“The insurers have been pouring millions into advertising and then provide better deals to customers, it’s all about new customer acquisition” says Nick Nicholaidis PR Manager at “People are changing the way they shop for car insurance. Shopping online is an easy way for people to learn their car insurance options quickly and with no hassle. By comparing quotes, people can save hundreds of dollars” says Nicholaidis.

Learning your car insurance options is simple. Start by visiting Once on the site, fill out a short form about your car insurance needs. It takes less than 5 minutes and is totally free.

Once you complete the form, your information is distributed to your local insurance agents who will research quotes from leading companies. These agents are simply motivated to get you the best deal they can based on your needs and profile. They all work with highly reputable, top-rated insurance providers such as: GMAC, Farmers Insurance, Unitrin, The Hartford, Liberty Mutual and Esurance. They are all trained to provide personalized service and can answer any questions you have regarding your policy and the quotes you receive.

A few minutes of your time, could save you hundreds of dollars.

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