NAIC survey reveals ways consumers have been saving money on car insurance

Save Money on Car InsuranceThe National Association of Insurance Commissioners (NAIC) has released the results of a survey that determined the top ways that consumers have made lifestyle changes within the last year in order to save money with their car use to reduce their insurance fees.

Over the last twelve months, 53 percent of Americans made this type of change with car insurance costs in mind. The insurance commissioners’ survey showed that the following changes were made by consumers:

  • Among automobile owners, almost 20 percent exchanged their car for a less costly model or eliminated a second car altogether.
  • Among all drivers, close to 20 percent either cancelled their car insurance policies outright, or reduced their coverage in order to take advantage of the immediate cost reduction.
  • Among all participants in the survey, nearly 40 percent used public transportation more frequently and/or reduced their overall driving.
  • Many consumers moved to a new location within the last 12 months.

There were five primary trends which were identified by the survey in terms of their impact on the cost of car insurance: changing vehicles, relocation, changes in employment, reduction in driving, and harm to the credit score.

Additionally, this survey also found that over 30 percent of all consumers were not aware that their car insurance premiums are heavily influenced by their credit-based insurance score. This was important to note as the recent economic crisis and current recovery had led many consumers to struggle with their bills and watch their credit scores slide – one of the main reasons that they were seeking to reduce their car insurance rates in the first place.

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