OAI: Driving Costs Study Shows Need to Cut Car Insurance Expenses

A recent AAA study shows coverage prices are up this year after falling in the last study.

Los Angeles, CA, May 02, 2012 --(PR.com)-- Data from a recent AAA study showing that coverage expenses are constituting an increasingly large part of the total cost of owning a car should help spur consumers to review their policies and make sure they're getting the best deal, says Online Auto Insurance.

Motorists asking how much is car insurance going to figure into the overall cost of using a car this year will find that fuel and tire costs far outpace the cost of a policy but that average premiums are still up 3.4 percent from last year.

According to the AAA study, the average sedan now costs 1.9 percent more than it did last year to operate, with insurance accounting for about 11 percent of the total cost.

The AAA study showed the average annual cost of owning an average sedan is approaching the $9,000 mark.

To keep costs from running that high, consumers may want to review their auto policies to see whether there's a cheaper coverage provider out there.

A new J.D. Power survey shows that only about 25 percent of drivers are actively checking up on their policies to make sure they're getting the best price. And many of them could be missing out on better deals that are available but that they are just unaware of.

Fuel costs, which spiked nearly 15 percent, are another expense that consumers may want to target when trying to cut back.

"[H]igh fuel prices are a real concern for consumers,” said AAA's director of automotive engineering and repair, John Nielsen. “[T]hose in the market for a new vehicle may want to be cautious and determine projected operational costs based on varying levels of fuels costs.”

OAI recommends that consumers consider focusing on smaller, fuel-efficient cars that get better mileage and may ultimately garner the most interest from shoppers in a resale market hungry for those models.

The study found that several cars in the study showed better fuel economy than the same models last year, most likely due to federal efforts advocating higher fuel standards.

Source: http://www.gao.gov/new.items/d10336.pdf

But any impact of improved fuel economy was wiped out by the overall price at the pump, now an average of $3.35 per gallon for regular grade fuel, according to the AAA.

Also, the rising cost of natural resources like oil showed recent impact as in past years. Higher oil prices played into a 0.7 percent increase in maintenance costs this year as well as a 4.2 percent jump in the cost of tires that need oil for its transportation and production, the study found.

For more on this and related insurance issues, head to http://www.onlineautoinsurance.com/quotes/how-much-car-insurance-costs.htm for access to an easy-to-use quote-comparison generator and informative resource pages.
Online Auto LLC
Charles Nguyen