Auto insurance rates continued to rise throughout the third quarter this year, according to a study by Insurance.com, the largest online auto insurance agency in the United States.

Insurance.com’s RateWatch for Car Insurance found that the lowest car insurance quotes, on average, were up 3% over the previous quarter, rising from $1893 per year to $1949 per year. This 3% hike follows a 3.4% increase in the second quarter.

RateWatch is based on real-time auto insurance quotes from more than a dozen insurance companies given to consumers at Insurance.com during the third quarter. It marks the third consecutive quarter of rate increases, causing concern among cash strapped drivers who are already struggling in this challenging economy.

“The increase in rates this quarter represents a trend that will most likely continue into 2009,” said Sam Belden, VP – Strategic Alliances at Insurance.com. “Drivers should take some time to understand how the type of car they drive, and their driving habits, affect their rates.”

Car insurance rates vary by state, and some locales experienced rate quote increases in the third quarter that were greater than the average. For example, Washington, D.C. had an 8.3% increase in rates, while Nebraska and Rhode Island saw rates jump 8% and 7.4%, respectively.

“There are many things consumers can do to save on car insurance, like comparing rates from several companies before they renew a policy, driving more carefully, and never letting a current policy lapse,” said Belden. “When a driver does not have continuous coverage, he or she may not qualify for the best available rates, and may be placed in the same risk category with drivers who have violations and accidents. This can cost a driver significantly more money for years.”

Consumers in 16 states saw rate increases greater than the 3% national average. In addition to the top 5 states listed below, rates were up more than 3% in Arkansas, Delaware, Maryland, New Mexico, North Carolina, Ohio, South Carolina, South Dakota, Texas, Utah, and Washington. There were 10 states with decreases and 9 states where the change was less than one percent.

Our study of 5,259 drivers who switched car insurers at our site showed annual savings ranging from hundreds to thousands of dollars. The national average savings reported was $595 a year. Savings vary by state.