Car Insurance Rates Responds to Claims Report
Car Insurance Rates recently conducted a poll of its participating insurers and discovered a marked uptick in the number of claims made since the economic downturn became especially severe in the fall of 2008.
Seattle, WA -- (SBWire) -- 11/17/2011 --CarInsuranceRates.com, a popular online destination for free car insurance quotes, performed an informal poll of the auto insurers participating in its referral network and found a significant increase in the number of claims filed since “The Great Recession” became serious in 2008.
The poll reveals that most car insurers agree with the notion that economic hard times typically result in an increased number of claims. This trend is especially troubling for consumers who are already cash-strapped because insurers tend to raise premiums when the number of claims increases.
“There is very little in our society that is not impacted by the economy. Unsurprisingly, car insurance rates and claims are no exception. Any number of theories could explain the correlation. When the economy plummets, desperate drivers who would otherwise never consider criminal activity may file fraudulent auto insurance claims for extra cash. Our insurers also tell us they see upticks in the incidence of fraud in poor economic climates,” explained Nathan Ackerman, spokesman for Car Insurance Rates.
Another theory suggested by the auto insurers who responded to the poll as to why claims have increased is the widespread cuts of state budgets. A smaller budget results in fewer funds devoted to road maintenance and other safety issues, which may contribute to accidents.
“Although the vicious cycle of more claims and higher premiums is difficult to combat during recessions, drivers should not foreclose the possibility of affordable car insurance rates. Using our site for competitive rate comparisons is one simple way drivers can find an inexpensive policy to help make ends meet until things look up,” said Mr. Ackerman.
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Car Insurance Rates
View this press release online at: http://rwire.com/115235