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1999–2003 US Auto Insurance Expenditures
by State

In 2005, the National Association of Insurance Commissioners (NAIC) released the “2002/2003 Auto Insurance Database Report.” This report revealed that Ohio’s average annual auto insurance expenditure in 2003 was $671.23, making it $149.68 lower than the national average of $820.91.

Based on an Insurance Information Institute (III) analysis of the data, Ohio ranked 37th in comparison to other states and the District of Columbia. New Jersey drivers’ expenditures ranked first ($1,188.42) while motorists in North Dakota were 51st ($536.30).

The average auto insurance expenditure is a measure of what consumers actually spend for insurance on each vehicle. This measure assumes that all insured vehicles in a state carry liability coverage but not necessarily collision and other than collision (comprehensive) coverages. It’s worth noting that expenditure figures can be impacted by a variety of non-insurance factors. For instance, if a state’s economy is flourishing and residents purchase more new vehicles in a year, more than likely they would purchase collision and comprehensive coverages, thus creating a higher average expenditure. Other factors that affect auto insurance prices include urban population, traffic density, income, auto laws, the economy, labor costs, liability insurance coverage requirements and auto theft.

1999–2003 Average State Expenditures For Auto Insurance

¹ Ranked by average expenditure
² Preliminary
³ The District of Columbia is entirely urban and New Jersey is predominately urban. Their results cannot be directly compared to states with large rural areas
⁴ Data incorporates Safe Driver Plan credits and surcharges.
⁵ Historically, New Jersey has paid 2 to 4 times the national average in dividends to policyholders, and at times as high as 6 times the national average, which reduces the average expenditure paid by New Jersey policyholders
⁶ Due to the exclusion of county mutuals, which had 43 percent of the market in 2003, Texas results are not comparable to results from other states

Average Expenditure=Total premiums written/Liability Car-Years. A car-year is equal to 365 days of insured coverage for a single vehicle. An estimate of what consumers spend for auto insurance on each vehicle.

Sources: Reprinted with permission from 2002/2003 Auto Insurance Database Report, published by the ©National Association of Insurance Commissioners. Further reprint or redistribution strictly prohibited without written permission of NAIC. The NAIC does not rank State Average Expenditures and does not endorse any conclusion drawn from this data. Ranking data provided by Insurance Information Institute.

NOTE: In prior editions of Ohio Insurance Facts, this section compared “average annual combined auto insurance premiums” – not expenditures. Comparison to previous years’ data would be inaccurate.

NOTE: The average expenditure does not equal the sum of liability, collision and comprehensive expenditures because some policyholders choose not to purchase collision and/or comprehensive coverages.

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.”

According to Runzheimer International, the 5 least expensive cities for auto insurance based on annual expenditures are:           • Roanoke VA $758           • Wapakoneta OH $871           • Chattanooga TN $911           • Green Bay WI $948           • Raleigh NC $949 NOTE: Premiums as of 1/05. Assumes $100/$300/$50 liability limits; collision and comprehensive with $500 deductibles; $2,000 med pay; and $100/$300 uninsured motorists coverage.