NHTSA Highway Fatality Report could Lower San Diego Auto Insurance Rates
The recently released National Highway Traffic Safety Administration 2011 automotive fatality report could have a positive effect on San Diego auto insurance rates. It’s too early to get excited, but the drop of 1.7% nationwide brings the total decline in traffic fatalities to 26% since 2005. That has consumers and insurance agents alike calling for lower rates, particularly in states like California that don’t offer no-fault auto insurance.
According to an accident liability law study conducted recently at Columbia University, states that offer no-fault auto insurance policies have a traffic fatality rate that is 6% higher than states that do not. California, instead of no-fault, has a “Car Insurance Financial Responsibility Law”, the reason why there’s minimum liability coverage of up to $15,000 for bodily injury to a single individual and $30,000 for two or more people. Drivers are also required to hold $5000 in liability for property damage.
Insurance companies base their premiums on statistics. If you purchase one of our San Diego Life Insurance policies at a young age, you will pay less than you will when you are older. An insurance company is less likely to pay out a death benefit when you are in your twenties than they are when you are in your fifties. Their risk is lower, so your premiums are more affordable. A decline in traffic fatalities means that you are less likely to die in a car accident. Shouldn’t that lower your auto insurance premiums?
On a somber note, there were still 32,310 traffic related deaths in 2011. It’s the lowest number in over sixty years, but still far too high according to safety advocates across the country. It is also, in certain circles, being attributed to the weak economy and fewer recreational driving hours by motorists. Will the fatality numbers go back up when the economy improves? Only time will tell. In the meantime, we can only hope that the lower fatality rate last year lowers San Diego Auto Insurance rates this year.
Finding the Best Rates and the Right Policy
Every situation is different and every motorist has different insurance needs. There are certain elements of your policy that are regulated by law. Additional coverage beyond that is optional. Do you understand what is being offered and why it could be a benefit to you? Our helpful and knowledgeable insurance professionals can assist you.
McCormick Insurance Solutions is the company to call when you’re looking for the most affordable San Diego auto insurance or life insurance rates. Reports like the one profiled above often impact insurance premiums, but not every carrier offers rate changes right away. For the very latest in updates on all things insurance in the San Diego area, be sure to check back here regularly. If you need a rate quote, request it online or give us a call at 619-276-0492. We’ll find you the affordable rate and policy you need.