Are car insurance rates rising in your state?

For the third consectutive quarter, RateWatch from Insurance.com has shown an upward trend in car insurance rates, reversing the downward trend of 2007. On average, the lowest car insurance rates for the third quarter of 2008 rose $56 over the previous quarter.

Does this mean your car insurance rates are going to go up? Not necessarily, and actually it could mean your rates are going down! The national average rate increase was 3%, with the largest increases coming in Washington D.C. (8.3%), Nebraska (8.0%), Rhode Island (7.4%), Kansas (6.6%) and Florida (4.9%). The largest car insurance rate decreases came in North Dakota (-7.8%), West Virginia (-7.0%), Wyoming (–4.5%), Alabama (-3.3%) and Vermont (-3.2%).

Rate changes by state

Below are the actual changes in comparison car insurance quotes as recorded by Insurance.com in the third quarter of 2008. Alaska, Hawaii, Massachussetts and New York are not included in the survey.

How can you improve your chances of a rate decrease?

You can take steps now to make sure your car insurance rates drop rather than increase. If your next renewal shows a premium increase, it’s time to comparison shop your auto insurance coverage with other carriers.

Not all car insurance companies are raising their rates, so if you take a few minutes to find the companies offering lower rates than the average, you could save yourself several hundred dollars a year on car insurance.