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Car Insurance and the Auto Industry Woes - Will Your Auto Insurance Go Up As America’s Auto Makers Go Down?

by EINSURANCE

It’s definitely a great time to buy a new American car. If you can still find an open dealership in your area, chances are good that along with fire-sale prices, you’ll be wheeled, dealed and promised a world of incentives. But before you drive that bargain-basement beauty off the lot, you’re going to need auto insurance, and some economists say that the melt-down in the U.S. auto industry may drive auto insurance quotes and rates higher.

One of the problems you may encounter in the future as you shop for car insurance quotes is that slow car sales may ultimately push some smaller companies out of the auto insurance business, leaving fewer providers and less choice, according to some economists. The laws of supply and demand could lead less affordable car insurance. Other experts predict that the auto industry’s woes may make it harder for you to find replacement parts, which once again will drive up prices as inventories shrink. If it costs more and takes longer to repair your car, the amount of your car insurance claim including rental car use will go up. While this won’t have an immediate impact (you’re only responsible for your deductible), if insurers see a pattern in a certain make or model, you could eventually see an increase in your car insurance premiums at the next renewal period. There are some proactive steps you can take to maintain affordable car insurance.

Besides buying a vehicle that isn’t scheduled for obsolescence, you can make sure you get one that’s equipped with every available anti-theft and safety device. This can make a significant difference in the cost of your car insurance. You can comparison shop car insurance quotes online. You can make sure your car insurance provider or agent is aware that you’ve got a squeaky-clean driving record so that you receive the best safe-drive discount available. You can also review your car insurance policy and eliminate any unnecessary coverage. For instance, if you’re car is paid for and an older model, maybe you don’t need that comprehensive coverage anymore. You might also consider a higher deductible. Just a little effort on your part can result in lower car insurance

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