As car theft rates drop dramatically in some Valley cities, insurance customers may be wondering whether they’re reaping the benefits in their policies. Regulators say it’s difficult to measure a direct correlation because there are so many other factors that influence rates. But theoretically, a decline in car thefts should offset insurance cost. “Autoinsurance rates are based on a number of factors and losses are the number one factor. Car thefts are a part of losses,” said Erin Klug, spokesperson for The Arizona Department of Insurance. According to FBI crime reports, in 2006-2008 motor vehicle theft declined across the valley. In Phoenix, it dropped 54 percent. Car theft is down 43 percent in Mesa. Glendale saw a modest decrease of 11 percent during the same time period. But despite the decline in auto thefts, insurance rates in Arizona have trended upwards since 2008, said Klug. This is due to a myriad of reasons that would outweigh one factor like the declining rate of car thefts. For example, Klug says insurance companies are losing money on outside investments. During profitable times, insurance carriers used their investment profits to defray rate increases to customers. But now, the sour economy has prompted carriers to shift a larger burden onto the consumer. Determining which carrier is providing the fairest rates is ultimately up to the consumer. “Take advantage of competition. If you feel your autoinsurer is charging too much or perhaps not being responsive to a particular factor, then by all means ...

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Tags: Auto Insurance News

This entry was posted on Thursday, June 11th, 2009 at 3:05 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed.