Survey released by the National Association of Insurance Commissioners (NAIC).
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DENVER – June 23, 2011 – Financial challenges have forced many consumers to make lifestyle changes
to adapt to the current economy. From changing jobs to moving to a different house to downsizing
vehicles, Americans have made decisions that impact unexpected areas of their life – like car insurance.
In fact, in the past year 53 percent of Americans have made an economic-driven change that could
impact the cost of their car insurance, according to an April 2011 survey released by the National
Association of Insurance Commissioners (NAIC).
According to the survey, the most common car-related, money-saving lifestyle changes consumers made
in the last 12 months that could impact their insurance costs were:
• Driving less overall and/or taking public transportation more frequently.
• Trading in a vehicle for a lower-priced model or eliminating a second vehicle.
• Reducing or cancelling car insurance coverage for immediate financial relief, but without realizing
the consequences. That can include higher future premiums and the economic consequences if they
were at-fault in an accident while being uninsured. In Colorado, cancelling insurance can also affect
vehicle registration.
“Choices such as driving less, switching jobs, or even paying off a vehicle can save money – or cost you
more – on your car insurance,” says John J. Postolowski, Interim Commissioner of Insurance for the
Colorado Division of Insurance. “When determining where to cut spending now, it’s important to
consider the big picture. It’s important to understand the choices you make now to save money on your
car insurance may adversely affect you in the future.”
Economic-Driven Lifestyle Choices That Can Affect Auto Insurance Costs
• YOU MOVED – Whether by choice or necessity, many consumers relocated over the past year. If you
downsized homes, took advantage of record low interest rates, or were forced to move due to
foreclosure, a change in zip code may affect your auto insurance premium.
Where you live could impact your premium. Most companies rate by geographic location
and rates vary from company to company.
The distance driven to and from work will also affect your premium.
• CHANGED CARS – Car ownership can be a hefty expense. Whether you chose to purchase a less
expensive car, paid off a current vehicle, or purchased a “starter” car for a teenage driver, car
insurance rates change.
