Recession having an impact on auto insurance rates

Thanks to the economy and its impact on insurance companies and their investments, consumers are likely to find themselves paying somewhat higher auto insurance rates in the coming year.

According to a report in USA Today, the average policy will rise 4 percent to $875 per year, following an average increase of 3 percent last year. Previous media reports have noted that the insurance industry did manage to record a profit last year, but it was much smaller than the previous year.

"Anything that costs more is difficult for consumers," J. Robert Hunter of the Consumer Federation of America told the newspaper, which noted that insurance companies generally invest premium payments in bonds, and to a lesser extent, stocks.

The stock market has shown some signs of revival in recent weeks, but many Americans are still down on their own retirement portfolios by as much as 40 percent in some cases. Worse, a rising unemployment rate has made it more difficult for millions of people to save for their retirement at all.

Despite the prospect of higher premiums, consumers do have the option of shopping around for affordable premiums, and seeking reasonable auto insurance rates by raising their deductibles and using other commonly cited money-saving methods.

For more information about saving money on auto insurance no matter what the economy is like, visit InsureMe.com.