In 1999, the National Association of Insurance Commissioners (NAIC) released the study, "State Average Expenditures and Premiums for Personal Automobile Insurance in 1997." The study revealed that Ohio's average annual combined auto insurance premium in 1997 was $630.71, making it $167.37 lower than the national average of $798.08. According to the study, Ohio's rate ranked 40th 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, as shown on the chart below.

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.

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. For every $100 collected in auto insurance premiums in Ohio in 1997, $78 was paid out in claims (the national figure was $75). Click here, "Where the Auto Insurance Premium Dollar Goes in Ohio and US," for 1997 national and Ohio figures.

A number of cost-saving suggestions can be found in the section, "How to Save Money on Auto Insurance," click here.