Smart Auto Insurance Blog

Delaware auto insurance rates are going up for State Farm customers in that state.  According to Online Auto Insurance News’ John Pirro, “State Farm car insurance rates to rise for Delaware policyholders.”  Starting today, rates will be increasing around 1.9% in Delaware.  State Farm is the second biggest auto insurance company in Delaware behind Nationwide.  Their market share is 22 percent and they say that they’re raising rates so they can keep the financial promises they have made to those customers.

Many factors will determine the amount of individual policyholder increases, including their particular coverage and any discounts they maintain.  All liability and personal injury protection coverage will be increasing.  Collision and comprehensive costs, however, will be increasing for some but decreasing for others.  From 2006 to 2008, PIP claims increased 10% and property liability claims increased 4.5%.  State Farm is also raising Michigan and Wisconsin auto insurance rates, while they are decreasing Illinois, Alabama, and Georgia auto insurance rates.

That Motown classic was right: you better shop around, especially for Delaware auto insurance. KYW-TV’s eye-opening study shows how there can be wild swings in premiums between companies. Everything else can be exactly the same! Some examples:

A couple and teenage son in Wilmington, with one accident on their record can pay…

• $4,528 per year with Progressive Insurance
• or $2,776 per year with a Liberty Mutual quote

They would save hundreds of dollars per year by switching their insurer! What about basic coverage for a couple in Landsdale, Delaware? They could pay…

• $2,643 per year with Nationwide Insurance
• or just $1,054 per year with a Travelers Insurance quote.

As you can see, the savings could be substantial; especially important during these tough times. Unfortunately, research has found that most consumers don’t compare auto insurance before they buy a policy, and don’t often switch policies.

RateWatch recently released its fourth quarter 2008 report, which highlights the poor consumers in states with the greatest increase auto insurance rates. Believe it or not, during this recession premiums actually increased by 8% over the past year!

Highest auto insurance premium increases:

1. Washington, D.C. auto insurance rates increased by 10.5% in Q4.
2. Utah auto insurance rates followed close behind with a 10.2% increase.
3. Colorado auto insurance rates saw a less severe, but still significant 6.1% increase.
4. Delaware auto insurance rates went up by 5.6% in Vice President Joe Biden’s home state.
5. Wyoming auto insurance rates increased by 5.5% in the fourth quarter.