2008 marked the biggest jump in car insurance rates in five years, with an annual increase of 8% over 2007, according to a new study by Insurance.com.
Auto insurance rates rose from $1810 at the end of 2007 to $1954 in 2008. This was the first year that rates were on the rise since 2003, adding to the many financial challenges already facing consumers throughout 2008.
"We've seen an alarming number of customers seeking to reinstate policies that had lapsed due to financial hardships," said Sam Belden, Vice-President of Strategic Alliances for Insurance.com.
Rates Rose Nationally
RateWatch data from the 4th quarter shows the lowest car insurance quotes, on average, were up $5 over the previous quarter, rising from $1949 per year to $1954 per year. This smaller increase followed three consecutive quarters of steep increases, including a 3% increase in the third quarter and a 3.4% increase in the second quarter. RateWatch is based on real-time auto insurance quotes from more than a dozen car insurance companies at Insurance.com.
Wondering where your state stands? Consumers in Pennsylvania were hit the worst with a 15% increase, while consumers in North Dakota enjoyed a 9% decrease during the same time period.
| Top 10 States With the Largest Increases in 2008 | ||
|---|---|---|
| State | Minimum Annual Premium Average | Percent Increase in 2008 |
| PA | $2,264 | 15% |
| DC | $2,952 | 14% |
| RI | $2,508 | 14% |
| UT | $1,861 | 14% |
| AR | $1,936 | 10% |
| TX | $1,912 | 10% |
| FL | $2,097 | 10% |
| KS | $1,646 | 9% |
| MO | $1,671 | 9% |
| IN | $1,522 | 9% |
| Top 10 States With the Largest Decreases in 2008 | ||
|---|---|---|
| State | Minimum Annual Premium Average | Percent Decrease in 2008 |
| ND | $1,527 | -9% |
| AL | $1,646 | -6% |
| ID | $1,347 | -5% |
| KY | $2,010 | -4% |
| TN | $1,571 | -3% |
| ME | $1,312 | -3% |
| NC | $1,600 | -2% |
| IA | $1,287 | -2% |
| AZ | $1,828 | -2% |
| VT | $1,422 | -1% |
| Annual Rate Changes by State | ||
|---|---|---|
| State | Average Lowest Quote | Percent Change in 2008 |
| AL | $1,646 | -6% |
| AR | $1,936 | 10% |
| AZ | $1,828 | -2% |
| CA | $1,860 | 4% |
| CO | $1,591 | 8% |
| CT | $2,171 | 7% |
| DC | $2,952 | 14% |
| DE | $2,508 | 2% |
| FL | $2,097 | 10% |
| GA | $1,693 | 8% |
| IA | $1,287 | -2% |
| ID | $1,347 | -5% |
| IL | $1,526 | 0% |
| IN | $1,522 | 9% |
| KS | $1,646 | 9% |
| KY | $2,010 | -4% |
| LA | $2,647 | 0% |
| MD | $2,223 | 4% |
| ME | $1,312 | -3% |
| MI | $2,026 | 0% |
| MN | $1,623 | 6% |
| MO | $1,671 | 9% |
| MS | $1,985 | 3% |
| MT | $1,624 | 1% |
| Annual Rate Changes by State (continued) | ||
|---|---|---|
| State | Average Lowest Quote | Percent Change in 2008 |
| NC | $1,600 | -2% |
| ND | $1,527 | -9% |
| NE | $1,578 | 5% |
| NH | $1,488 | 2% |
| NJ | $2,567 | 2% |
| NM | $1,886 | 7% |
| NV | $2,146 | 3% |
| OH | $1,309 | 7% |
| OK | $1,771 | 9% |
| OR | $1,577 | 7% |
| PA | $2,264 | 15% |
| RI | $2,508 | 14% |
| SC | $1,631 | 3% |
| SD | $1,508 | 1% |
| TN | $1,571 | -3% |
| TX | $1,912 | 10% |
| UT | $1,861 | 14% |
| VA | $1,664 | 7% |
| VT | $1,422 | -1% |
| WA | $1,869 | 4% |
| WI | $1,369 | 8% |
| WV | $2,086 | 1% |
| WY | $1,899 | 0% |
*Note: Data reflects the average price of the lowest quotes received by consumers through Insurance.com from our partner car insurance companies in 46 states and Washington, D.C.
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