Car Insurance Prices Rising: Analysis

Cheaper car insurance is not something that will be easily got in the future.

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Latest reports from AAA reveal that there has been an increase in total driver cost by 3.4%. This is despite improved fuel economy, report also showed greater depreciation costs, leading to higher car insurance prices.
Also, as per a EMB car insurance price index, car insurance renewal quotes are higher than last year, despite reduction in the total number of accidents occurring this year.

However, car insurance prices for 2011 are more appealing with an inflation rate of only 3.1%. These factors have lead to a 16% increase in motorists driving without insurance, confirmed by a Harris interactive report.
Specialist auto insurance company, Provident Insurance, has been acquired by Covéa. What impact this shall have on the car insurance scenario is unknown.

Extra Car Insurance Mandatory on Mexican Rentals

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Too many tourists have booked a rental car for their Mexican vacation through sites like Hotwire and prepaid what they thought was the total price. Upon arriving to pick up the car, the Mexican agent tells them they must purchase additional mandatory car insurance. While this may at first glance seem like a scam, it's actually a lack of disclosure on the part of the rental company and/or travel site.

Additional mandatory insurance is required in Mexico, but the fact is this should be fully disclosed when you rent the car so there are no surprises. If this happens to you, you should escalate it with the company or site that you booked the rental car through and you will likely be able to get your money refunded if you are persistent.

Online Car Insurance Discounts

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Co-operative Insurance has launched a new 'Smartbox' that could help young drivers aged 17 to 25 earn discounts on their online car insurance.

The Smartbox is a device that will come with the insurer's Young Driver insurance, and is designed to reward those safe drivers by assessing how they drive. The unit will monitor things like acceleration, braking, cornering, speed and travel times using GPS. Then this information will be automatically sent back to the insurance company, which will price the driver's policy accordingly. Drivers will have an 'online dashboard' on a personalized web page where they can check their score and identify ways to improve their driving. This idea could help many young motorists to bring down their insurance costs, as they usually pay considerably more than older age groups currently.