AVERAGE CAR INSURANCE RATES RISE 3.4 PERCENT IN 2Q

BusinessWeek logo

Register Sign In
Winner: 2008 National Magazine Award
Current Issue
4 Trial Issues
Subscribe

* Home
o Top News
o Special Reports
o Columnists
o Videos
o Newsletters
o The Debate Room
o In Your Face
o Blogs
o Election 2008
o Green Business
o What's Your Story?
* Investing
o Investing Home
o Markets
o Stocks
o Economy
o Real Estate
o Retirement
o Investing: Europe
o Philanthropy
o Learning Center
o Economics Blog
o Green Biz Blog
o Investing Blog
* Companies
o Companies Home
o Sectors & Industries
o Industry News
o Learning Center
o People Overview
o Windows Mobile Application
* Technology
o Tech Home
o CEO Tech Guide
o Computers
o Electronics
o Entertainment
o Internet
o Reviews
o Software
o Investing
o Tech Maven
o Telecom
o Columnists
* Innovation & Design
o Innovation Home
o Architecture
o Auto Design
o Brand Equity
o Game Room
o Brand Blog
o Design Blog
o Games Blog
o Media Blog
o NEXT Blog
o Slide Shows
o Columnists
* Managing
o Managing Home
o Your Career
o Your Team
o Your Company
o Your Board
o Books
o Management IQ Blog
o Interactive Case Studies
o Columnists
* Small Biz
o Small Biz Home
o Small Biz Blog
o Getting Started
o Financing
o Marketing
o Leadership
o Communications
o Smart Answers
o Success Stories
o Tech
o Small Biz Magazine
* B-Schools
o B-Schools Home
o Undergrad
o MBA Insider
o MBA Blogs
o Calendar
o Forums
o Getting In Blog
o Rankings & Profiles
o Admissions Q&As
o Journals
o Videos
* Asia
o Asia Home
o China
o India
o Economy
o Innovation
o Investing
o Eye on Asia Blog
* Europe
o Europe Home
o Autos
o Companies
o Economy
o Energy
o Innovation
o Investing
o Europe Insight Blog
* Lifestyle
o Lifestyle Home
o Real Estate
o Autos
o Travel
o Executive Health
o Living Well
o Auto Beat Blog
o Business of Luxury Blog
o Hot Property Blog
o Traveler's Check Blog
* Magazine
o Current Issue
o Past Issues
o Cover Story Podcasts
o Figures of the Week
o Small Biz Magazine
o BW TV
o Subscribe
o FAQs

The Associated Press July 17, 2008, 11:14AM ET
Average car insurance rates rise 3.4 percent in 2Q

BY SARA LEPRO
Story Tools

* order a reprint
* digg this
* save to del.icio.us

Click here to find out more!

NEW YORK

Auto insurance rates rose for the second straight quarter, with the sharpest jumps occurring in Indiana, Arkansas and Rhode Island, according to a report released Thursday by Insurance.com.

The online auto insurance agency said that the lowest car insurance quotes, on average, increased 3.4 percent over the first quarter to $1,893 per year from $1,831 per year.

The rate report is based on insurance quotes given to consumers during the second quarter from 15 insurance companies, including Progressive Corp., Safeco Corp., Hartford Financial Services Group Inc. and Travelers Cos.

The most expensive auto insurance quotes were in Louisiana, New Jersey and Washington, D.C., while the least expensive states for auto insurance quotes included Ohio, Wisconsin and Maine.

Rates jumped the highest in Indiana, rising 6.7 percent to $1,501, followed by a 6.1 percent increase in Arkansas and a 5 percent spike in Rhode Island.

Following a 1 percent increase in the first quarter, this marks the second straight quarter for rate increases, the report said, reversing a trend of steady or declining rates for the past few years.

"Car insurance companies are continuing to raise prices due to rising medical costs and the rising cost of repairing vehicles," said Dave Roush, chief executive of Insurance.com, in a statement.

NOTE: ROUSH IS A RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY

Roush expects rates to continue to increase through 2009.

Sam Belden, director of consumer experience at Insurance.com, said there are several ways consumers can seek out lower car insurance rates.

For example, consumers who may have cut back on driving or who are carpooling as a way to offset escalating gas prices can ask their carriers about reduced coverage, he said. Many companies offer a "low mileage" discount to those who drive less than 10,000 miles each year.

Carriers may also offer breaks to consumers who own older models of cars or hybrid cars, Belden said.

BW Extras

* Podcasts
* Top Designers
* Behind the Cover
* CEO Guide to Tech
* more…

* RSS Feeds
* Most Popular
* Top News
* Innovation Trends
* more…

* E-mails
* Asia Insider
* MBA Express
* BW.com Insider
* more…

* Blogs
* Blogspotting
* Hot Property
* Tech Beat
* more…


Most Popular Stories

* Read
* E-mailed
* Discussed

1. The End of Oil's Boom?
2. How Bad Will It Get on Wall Street?
3. Stocks: The Dividend Defense
4. A Stroll Through the iPhone App Store
5. Anheuser-Busch's Troubled Brew

RSS Feed: Most Read Stories

1. The End of Oil's Boom?
2. How Bad Will It Get on Wall Street?
3. Anheuser-Busch's Troubled Brew
4. Collecting Money in a Bad Economy
5. Five Don'ts for Marketing in Tough Times

RSS Feed: Most E-mailed Stories

1. The End of Oil's Boom?
2. GMAT Scandal Has MBA Students Sweating
3. EBay's Painful Quarter
4. Anheuser-Busch's Troubled Brew
5. A Stroll Through the iPhone App Store

RSS Feed: Most Discussed Stories
Click here to find out more!
Most Popular Multimedia

* Slide Shows

1. The World's Best Places to Live 2008 - BusinessWeek
2. The Top Undergrad Business Schools - BusinessWeek
3. Twenty Jobs to Ride Out an Economic Slump - BusinessWeek
4. 50 Best Internships - BusinessWeek
5. The World's Happiest Countries

RSS Feed: Most Popular Slide Shows
Ads by Google

* Protect your portfolio
and profit from this bear market Get our latest recommendations
www.legacyinternational.info

Click here to find out more!
BW Mall - Sponsored Links

* PROVE The Business Value Of Your IT Portfolio Forrester Evaluates Four Methods Used To Measure The Business Value Of IT. Register For Free Report.
* ACMUSA.com – Practice Forex Trading Free $100,000 Practice Account With Real-Time Charts, News & Research!
* Professional Training & Certification Courses Boston University Corp Ed Ctr offers training via classrooms throughout the US or at your facility.
* Study accredited UK postgraduate degrees Earn an industry focused accredited masters degree in 1 year full-time or 3 years online. Ranked 2nd in UK for employability by FT. Aberd...
* H&R Block Tax Prep Class Want to be a Tax Professional? Enroll In An H&R Block Class Now!
* Buy a link now!