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Economic Changes Affecting Your Car Insurance

The National Association of Insurance Commissioners (NAIC) survey found the most common car-related, money-saving lifestyle changes consumers made in the last 12 months that could impact their insurance costs were:

  • Nearly 40 percent of respondents are driving less overall and/or taking public transportation more frequently.
  • Close to 20 percent of car owners traded in a vehicle for a lower-priced model or got rid of a second vehicle entirely.
  • Almost 20 percent of drivers have reduced or cancelled their car insurance coverage for immediate financial relief.
  • Many consumers relocated over the past year.

The survey identifies five trends and their effects on auto insurance premiums:

– Relocation
– Changing Vehicles (cheaper car, or hybrid)
– Changing Jobs (lower commute)
– Driving Less
– Damaged Credit Score (insurance score may affect the premium)