Car Insurance Comparison

Below is a fun comparison:

1991: $800 Cost of Car Insurance in Massachusetts
2011: $840 Cost of Car Insurance in Massachusetts

The above numbers represent average.

How much did a gallon of gas cost in 1991 compared to 2011? I bet it increased by more than 5%.
The average cost of insurance has increased only 5% since 1991. That's a lot less than inflation - about one quarter of one percent per year for 21 years.

A gallon of gas in 2001 was approximately $1.25. If it maintained a similar increase to insurance, it would be $1.29/gallon {wouldn't that be nice?}
Today, in 2012 a gallon of gas is approximately $3.75.
That's a 3 times the cost in 2001. That's an increase of 10.5% PER YEAR.
Can you imagine if your car insurance went up 10.5%/year for 10 years?

Instead of your car insurance being $840, the average policy would be $2,400.
Outrageous.

Well, I'm not here to talk about outrageous gasoline prices.

Do you know WHY auto insurance is cheaper {comparatively speaking} than gas?

Cars are safer. People are more aware of the dangers of drinking & driving and distracted driving.
There are fewer accidents and thefts. There are more people who have insurance.
If someone drives a Massachusetts registered vehicle without insurance, the insurance rates of everyone else increase.

Remember, the next time you're paying your insurance bill, your insurance didn't increase nearly as much as the cost to fill your car with gas.