Study: Car Insurance Prices Up three %

Car and property owners insurance climbed in almost every single state in 2013, with Michigan getting the most significant leap for auto coverage and Oklahoma for residence protection, in accordance to a new report.

Investigation and consulting company Perr&Knight says car insurance costs rose nationwide by an average of 2.5 % final 12 months. Michigan’;s price spiked by 8.6 %, followed by Georgia at 5.2 percent.

“The 2013 auto insurance enhance is in line with a 5-yr trend of annual typical fee increases between 2 percent and 4 percent, and was reduce than the 2012 nation-wide rate improve of 3.6 %,” according to Perr&Knight, which is primarily based in Santa Monica, Calif.

Homeowners insurance coverage across the country had an even larger jump, a 5.1 % typical over 2012. Oklahoma property owners paid percent a lot more. Florida was next, at eleven percent. The firm based mostly its findings on public fee filings by insurance firms representing about 80 percent of the premiums written in 2013.

Perr&Knight’;s CEO Tim Perr says the nation-broad auto coverage rise is most likely due to fix fees increasing with inflation (the 2013 nationwide inflation fee was 1.6 %, in accordance to government figures). As for house owners insurance coverage, he pointed to widespread damages induced by serious weather events. “We see bigger-than-trend home owners increases seem to be concentrated in the wind — hurricane and tornado — exposed states,” Perr says. Here are the states with the greatest car insurance increases, according to Perr&Knight:

  • Michigan — 8.6 percent
  • Georgia — 5.2
  • New York and Delaware — the 2 at 4.3 percent
  • Nevada — 4.1
  • Rhode Island — 4

The report notes that no states had a drop in car insurance premiums final yr. Coverage charges in North Dakota, nevertheless, remained about the identical as in 2012. Florida, Hawaii, Maryland, Maine, Montana and North Carolina were also at the low end, all with increases of much less than one percent.

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