2001 US Auto Insurance Premiums By State
In 2003, the National Association of Insurance Commissioners (NAIC)
released the study, “State Average Expenditures and Premiums
for Personal Automobile Insurance in 2001.” The study revealed
that Ohio’s average annual combined auto insurance premium
in 2001 was $682.67, making it $134.76 lower than the national average
of $817.43. According to the study, Ohio’s rate ranked 42nd
in comparison to those of other states and the District of Columbia.
New Jersey drivers paid the most for auto insurance, while motorists
in Iowa paid the least. (Click
here for "2001 Average Auto Insurance Premium Comparison by
State.")
The combined average premium is an approximate measure of the relative
cost of auto insurance for a combined package of liability and physical
damage coverages. It should be noted that a state’s average
auto premium is affected by such factors as the coverages, deductibles
and limits purchased; the types of vehicles insured; the distribution
of driver characteristics and the underlying rate structure. The
rate structure could include auto repair costs, medical costs, premium
taxes, cost of living, traffic conditions, the legal system, law
enforcement and other factors.
* Indicates Ohio’s ranking compared to other states and District
of Columbia
** Combined Average Premium—the total of liability, collision
and comprehensive average premiums
As emphasized in the study, caution should be used when interpreting
the numbers. The combined average insurance premiums are imperfect
measures of the relative “price” of insurance across
states because they are affected by outside factors, as indicated
above. For instance, a state’s average premium will be relatively
higher if its policyholders tend to purchase higher limits or insure
more expensive cars.
It’s important to understand why auto insurance premiums
can go up, even in the absence of a claim. In 2002, for every
$100
collected in auto insurance premiums in the US, $104 was paid out.
Click here for “Where the Auto Insurance Premium Dollar
Goes in the US,” for additional information.
A number of cost-saving suggestions can be found in the section,
“How to Save Money on Auto Insurance.”
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According to the Texas Transportation Institute,
drivers are spending more
time on the road—an average of 300 hours in 2002. |
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