New Car Insurance Trends For The 2011 Fiscal Year

The New Year brings with it a great deal of financial uncertainty and change which can extend into all aspects of a consumer's life. Car insurance is heavily regulated and new car insurance trends often follow changes in the state regulations governing it. New trends in car insurance are also driven by other factors such as the poor economy, which is driving auto insurance companies to try to hang onto existing customers while attracting new ones.

Mileage Based Insurance

Mileage based insurance is becoming increasingly common within the car insurance marketplace. More car insurance companies in a greater number of states are offering policies with premiums based upon the number of miles that you drive. Drive less, pay less. Typically, your rates are based upon the number of miles you drove in the last six months, and the average is recalculated every six months. Of course, mileage based insurance does carry the risk of a rate increase in the event that the insured drives more than they expected.

More Competitive Rates

The economy has been tough on everyone. Car insurance companies are struggling to retain their current customers as well as to attract new ones. Some car insurance companies have responded to the state of the economy by offering more competitive rates. In some cases, savings take the form of discounts which might be offered for having multiple cars or policies, being a good driver or student, or remaining claim or accident free.

Online Customer Service

Increasingly, car insurance companies are becoming aware of new trends in technology, and making online customer service available to their customers. The number of services offered is broad. With some companies, customers are able to pay their premiums, view their policies, print insurance cards, and even file claims via the Internet. In keeping with these car insurance trends, some companies allow you to use your smart phone to conduct your business.

Premium Policy Options

Recent years have seen the introduction of new car insurance options to the marketplace. Customers are able to purchase New Car Replacement, and may see their premiums and deductibles decrease over the time where they remain claim free. Other policies offer Accident Forgiveness. Of course, such features must be purchased in advance. Be sure to talk to your agent about premium insurance products which interest you.

The 2011 fiscal year is likely to see many of the recurrent car insurance trends which we observed in 2010. The economy will continue to feature prominently in the pricing of car insurance rates. New technology is changing how customers and auto insurance companies interact. New pricing scenes and premium policies are becoming available to the public, broadening your choices as a consumer.

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