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Loan delinquencies spiked as car insurance premiums rose

The number of people who were delinquent on their car loan in the first quarter was more than 27 percent higher in 2009 than the same period last year, according to a report from TransUnion.com.

The website predicted that car loan delinquencies should rise to about 1 percent nationally before the recession ends, with the worst delinquency rate reaching almost 2 percent in Mississippi.

While other consumer strains likely played a part, such as rising joblessness and the impact of the housing market collapse, the national average car insurance premium also rose by 12 percent during the past year.

Car insurance premiums rose in 28 states, according to a recent survey by a car insurance website. Although car insurance rates did go down in 20 states, large numbers of consumers face the added pressure of rising costs.

Insurance experts say drivers having trouble making their car or mortgage payments can find ways to save on their insurance premium. The easiest savings come from raising the deductible from $250 to $1,000.

For a long-term fix, drivers should look to compare insurance quotes for a better rate.

Get matched with auto insurance companies FREE at RateMarketplace.com.

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