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Has Auto Insurance Improved Since 2014?

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For vehicle owners, it is no surprise that one of the most important expenses is insurance cover  for their liabilities while driving. What is surprising, however, is the fact that not all states in the U.S. require car owners to have insurance. In some states, all that is needed is a personal indemnity bond. You do have to pay some sort of cost to protect yourself from greater liability in case of an accident. The cost of insuring a vehicle can be pretty expensive.

Has Auto Insurance Improved Since 2014?

According to a J. D. Powers and Associates 2014 U.S. Auto Insurance Study, even though premium rates have been steadily increasing each year, in 2014 the rise was a lot less than before. The study found the policyholders were satisfied with their insurer. This might change with the new pricing policy that is due to come into practice in 2015. It might make it necessary for most policyholders to shop around for their car insurance. Insurance experts have been observing the trend that insurance agencies are overcharging their existing customers. This is especially true of loyal customers, or customers who have been with an insurer for a long time and have had little to complain about from their insurance company. It was discovered that insurance companies increased premiums of customers whom they felt were not likely to change insurers by a lot more than their loyalty discounts. A loyal customer is more likely to pay a higher premium, which seems rather unfair. This trend is not likely to change in 2015. The price optimization policy that the insurers refer to for determining insurance premium rates takes into account personal information from the customer base, and this determines the rate of increase without causing the policyholder to shop around for a better deal with another insurer. Insurance premiums ( car insurance or traumainsuranceaustralia.com.au )are based on a number of factors including your age, education and place where you live and also the inclusions you have in your policy.

Since it is too early in 2015 to form any certain impressions or predict trends about where car insurance will go, one thing for sure is that the premium prices are bound to increase, even if it is a small percentage over 2014. With advanced telematics becoming a part of auto vehicles, insurance companies are expected to rely on results and data from this technology to determine insurance premiums. This may lead to more accurate parameters to create usage-based insurance, and this may be considered a step in the right direction.

Since it will be a while before user-based insurance becomes a norm, the premiums are likely to increase. As a policyholder you should begin to look for another insurer and lower your insurance costs.

Stephanie Wilmsmeyer is a State Farm agent offering the best service for car insurance Columbia MO has to offer.