Nearly half of Americans think car insurance rates are fair

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Nearly half of Americans think car insurance rates are fair

Amid rising car insurance prices in 2021, nearly half of adult Americans think that their rates are fair or very fair. However, according to YourGov’s own Forbes Advisor, some experts disagree.

Besides a sharp decrease in 2020 because auto insurance companies were offering refunds and credits to provide financial relief, car insurance rates have been rising steadily for decades, according to statistics from the U.S. Bureau of Labor Statistics. Why have insurance rates risen because of the price of car repairs and medical costs?

The survey also found that among drivers who felt auto insurance policy rates are unfair, about half have taken no action to reduce their auto insurance policies in the last 12 months.

While about half of consumers believe that car insurance rates are fair, the idea of fairness tends to fall apart when people were asked specifically about the fairness of specific pricing factors such as the use of credit, said Amy Danise, Forbes Advisor chief insurance analyst. This may be because consumers are generally unaware of the factors used in car insurance pricing.

If you want to see how your auto insurance premiums compare or view options for different car insurance companies, visit Credible to see personalized offers from multiple auto insurance providers at once.

According to the survey, drivers learned that a variety of factors contribute generally to your insurance rate. These include your age, driving record, credit score, where you live & more. Respondents of the survey were strongly convinced that some factors unrelated to driving a vehicle should not factor into the pricing of their car insurance.

If you are looking for ways to lower your insurance bill, it will require a little action. What are the following three factors to help you lower your insurance cost?

According to the survey, 69% of Americans didn't like the utilization of one's credit score in determining premium payments. In some states, your credit score can help you get a better rate, so improving it can work to your benefit when it comes to car insurance.

This is true for every state except California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah, which prohibit or regulate the use of credit scores by auto insurance carriers, according to Andrew Latham, managing editor at SuperMoney, a financial services comparison site.

If the factors for the driver change, then they may have to change the auto insurance company as a result. One company offering the best rates should not have the best rates for a driver's new profile.

People may not realize that the company which was able to offer them a great rate a few years ago no longer offers competitive pricing for them, Danise said. As driving records change, credit and discount availability changes, the cheapest companies for a particular person also change.

Because car insurance providers measure factors differently, one that can offer a fair price to one driver may not have the best rates for another driver. Visit Credible to compare and contrast auto insurance quotes from multiple car insurance companies across the USA and determine which car insurance quote is the best fit for you.

Since your credit score, driving history and a variety of other factors influence the rates of car insurance, it's a good idea to look at various car insurance coverage carriers to find out what you need.

We can't expect consumers to be aware of all reasons for overpaying for car insurance, Danise said. But shopping for new car insurance quotes every few years could really be an eye-opener for many people.

Visit Credible to compare multiple insurance companies at once and find affordable car insurance quotes for you in minutes. If you email Money Expert at moneyexpert credible.com, your question may be answered by Credible in our Money Expert Column.