Insurance.com's 2006 Auto Insurance Pricing Report: Car Insurance Rates on the Decline

By Rstaib Posted : 01/15/2007

Summary

37 states saw a decrease in car insurance rates in 2006.

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For the second year in a row, Insurance.com's 2006 Auto Insurance Pricing Report notes that where you live matters when it comes to your car insurance rate.

Based on data drawn from the lowest average auto insurance rates per household viewed by over 1.1 million car insurance consumers on the Insurance.com platform in 2006, 37 states saw a reprieve in 2006 from the high costs of auto insurance. -"We've seen a trend towards lower cost auto insurance over the last couple of years and the Insurance.com's 2006 Pricing Report supports this conclusion,-" stated Dave Roush, CEO of Insurance.com.

In its survey of 47 states, Insurance.com found an overall decline in the 2006 national average for auto insurance rates returned for households, as well as some interesting insights into state-specific pricing and general insurance premium trends. Some of the states where drivers benefited the most from the 2006 car insurance decline were New Jersey, who paid an average of $2,736.71 for car insurance - a 26.6% decrease from 2005. And Minnesota, who paid an average of $1,658.07 - a 18.8% decrease from 2005.

10 States with the Largest Decrease in Premium

State

2005 Premium

2006 Premium

2006 Change from 2005

% 2006 Change from 2005

NJ

$3,728.60

$2,736.71

-991.89

-26.6%

MN

$2,042.92

$1,658.07

-384.85

-18.8%

WI

$1,605.40

$1,352.32

-253.09

-15.8%

IN

$1,707.83

$1,462.75

-245.08

-14.4%

NE

$1,963.00

$1,701.69

-261.31

-13.3%

PA

$2,218.39

$1,924.95

-293.45

-13.2%

MD

$2,528.57

$2,225.93

-302.64

-12.0%

KS

$1,836.83

$1,618.98

-217.84

-11.9%

SC

$1,935.94

$1,717.15

-218.79

-11.3%

CA

$2,075.72

$1,841.91

-233.81

-11.3%

However, despite the overall decrease, Insurance.com found that some states that experienced a decline in car insurance rates are still paying some of the highest car insurance rates in the country. For instance, Louisiana paid an average of $2,832.78 for car insurance in 2006 - a 6.1% decrease from 2005. And New Jersey paid an average of $2,736.71 - a 26.6% decrease from 2005.

How can these states be paying such high premiums when auto insurance rates have been declining since 2005? Good question! It turns out that where you live plays a large role in how much you pay for car insurance. The reason for this is car insurance companies factor in the environment the driver lives in, including the cities' limited parking, higher traffic population, greater theft rate and the amount of uninsured drivers. The worse the statistics are, the higher a driver will pay for car insurance.

10 Most Expensive States

State

2005 Premium

2006 Premium

2006 Change from 2005

% 2006 Change from 2005

LA

$3,015.55

$2,832.78

-182.77

-6.1%

DC

$2,716.94

$2,753.21

+36.28

+1.3%

NJ

$3,728.60

$2,736.71

-991.89

-26.6%

NY

$2,672.79

$2,713.94

+41.15

+1.5%

DE

$2,331.46

$2,620.99

+289.53

+12.4%

RI

$2,401.42

$2,552.75

+151.34

+6.3%

WV

$2,408.44

$2,366.60

-41.84

-1.7%

KY

$2,447.91

$2,298.92

-148.98

-6.1%

NC

$2,198.51

$2,260.68

+62.17

+2.8%

MD

$2,528.57

$2,225.93

-302.64

-12.0%

10 States with the Largest Increases in Premium

State

2005 Premium

2006 Premium

2006 Change from 2005

% 2006 Change from 2005

DE

$2,331.46

$2,620.99

+289.53

+12.4%

RI

$2,401.42

$2,552.75

+151.34

+6.3%

NC

$2,198.51

$2,260.68

+62.17

+2.8%

AR

$2,068.25

$2,118.02

+49.77

+2.4%

MI

$2,110.63

$2,158.05

+47.42

+2.2%

NY

$2,672.79

$2,713.94

+41.15

+1.5%

DC

$2,716.94

$2,753.21

+36.28

+1.3%

WY

$2,166.22

$2,189.67

+23.45

+1.1%

ME

$1,474.12

$1,484.12

+10.00

+0.7%

UT

$1,789.43

$1,797.44

+8.01

+0.4%

So should you start packing your bags and move to a different state just to have low cost auto insurance? Not necessarily. Where you live does matter; however, it is not the only factor insurance companies consider when quoting an insurance rate, they also take into account the following factors:

  • Driving violations
  • Your vehicle
  • Accident claims
  • Credit rating
  • Occupation
  • Age

Curious to see how your state ranked in theInsurance.com 2006 Auto Insurance Pricing Report? Below is a list of the 47 states Insurance.com surveyed. States are ranked in alphabetical order with the price increase or decrease displayed as a percentage for each state.

2006 Auto Insurance Pricing Report

State

2005 Premium

2006 Premium

2006 Change from 2005

% 2006 Change from 2005

AL

$1,897.00

$1,846.68

-50.31

-2.7%

AR

$2,068.25

$2,118.02

+49.77

+2.4%

AZ

$2,050.79

$1,928.98

-121.81

-5.9%

CA

$2,075.72

$1,841.91

-233.81

-11.3%

CO

$1,827.79

$1,658.50

-169.29

-9.3%

CT

$2,052.77

$1,964.97

-87.80

-4.3%

DC

$2,716.94

$2,753.21

+36.28

+1.3%

DE

$2,331.46

$2,620.99

+289.53

+12.4%

FL

$2,134.16

$2,105.25

-28.91

-1.4%

GA

$1,885.55

$1,705.32

-180.23

-9.6%

IA

$1,554.52

$1,496.49

-58.03

-3.7%

ID

$1,630.88

$1,547.77

-83.11

-5.1%

IL

$1,644.51

$1,556.46

-88.05

-5.4%

IN

$1,707.83

$1,462.75

-245.08

-14.4%

KS

$1,836.83

$1,618.98

-217.84

-11.9%

KY

$2,447.91

$2,298.92

-148.98

-6.1%

LA

$3,015.55

$2,832.78

-182.77

-6.1%

MD

$2,528.57

$2,225.93

-302.64

-12.0%

ME

$1,474.12

$1,484.12

+10.00

+0.7%

MI

$2,110.63

$2,158.05

+47.42

+2.2%

MN

$2,042.92

$1,658.07

-384.85

-18.8%

MO

$1,588.32

$1,557.91

-30.41

-1.9%

MS

$2,173.83

$2,020.86

-152.98

-7.0%

MT

$1,897.04

$1,769.30

-127.74

-6.7%

NC

$2,198.51

$2,260.68

+62.17

+2.8%

ND

$2,003.95

$1,941.32

-62.63

-3.1%

NE

$1,963.00

$1,701.69

-261.31

-13.3%

NH

$1,843.06

$1,649.82

-193.24

-10.5%

NJ

$3,728.60

$2,736.71

-991.89

-26.6%

NM

$2,046.53

$1,900.06

-146.46

-7.2%

NV

$1,959.37

$1,941.77

-17.60

-0.9%

NY

$2,672.79

$2,713.94

+41.15

+1.5%

OH

$1,485.15

$1,358.09

-127.07

-8.6%

OK

$2,013.45

$1,894.32

-119.13

-5.9%

OR

$1,720.08

$1,648.06

-72.02

-4.2%

PA

$2,218.39

$1,924.95

-293.45

-13.2%

RI

$2,401.42

$2,552.75

+151.34

+6.3%

SC

$1,935.94

$1,717.15

-218.79

-11.3%

SD

$1,857.85

$1,811.98

-45.88

-2.5%

TN

$1,672.50

$1,547.53

-124.96

-7.5%

TX

$1,949.67

$1,801.50

-148.17

-7.6%

UT

$1,789.43

$1,797.44

+8.01

+0.4%

VA

$1,675.40

$1,575.29

-100.11

-6.0%

VT

$1,611.47

$1,554.28

-57.19

-3.5%

WA

$1,940.24

$1,792.22

-148.02

-7.6%

WI

$1,605.40

$1,352.32

-253.09

-15.8%

WV

$2,408.44

$2,366.60

-41.84

-1.7%

WY

$2,166.22

$2,189.67

+23.45

+1.1%

"Prices still vary considerably on a case-by-case basis, so it's essential to compare rates before making a purchase. Insurance.com makes it easy for consumers to compare rates and buy the policy that's right for them, either online through our auto insurance comparison application or over the phone with knowledgeable licensed agents," noted Roush.

So how can all consumers save even more money on their auto insurance? Consider these basic tips:

    1. Shop around.
      You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary quite dramatically (by hundreds of dollars) between different insurers. Make sure your current company is right for you, or find a better fit with a new company.



    1. Increase your deductible.
      Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible. However, if you do this, make sure you have the financial resources to handle the larger deductible when the time comes.



    1. Inquire about multi-family/multi-policy discounts.
      A discount may apply to your auto insurance if you insure multiple cars under the same policy or with the same company. You also may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowners).



  1. Keep an eye on your credit report.
    Your credit history can often be an important factor for some auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.

About Insurance.com's 2006 Auto Insurance Pricing Report
Insurance.com's 2006 Auto Insurance Pricing Report highlights the lowest average auto insurance rates viewed by over 1.1 million car insurance consumers on the Insurance.com platform in 2006*. The information comes from actual auto insurance quotes consumers received from over a dozen of the nation's leading auto insurance companies who participate on Insurance.com's comparative auto insurance platform.

*Disclaimer
While the Insurance.com's 2006 Auto Insurance Pricing Report is a broad indicator of pricing activity in the personal auto insurance marketplace on a per household basis, it is not a comprehensive index as it reflects only the pricing activity of carriers that have participated in the Insurance.com auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, Massachusetts) and the aggregate profile of consumers who shop using the Insurance.com platform.

Please note that the description/explanation provided above is only intended as a guideline.

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