Auto Insurance Premiums Inched Up in 2010

January 2, 2013 No Comments »
Auto Insurance Premiums Inched Up in 2010

It’s 2013, who cares, right? As with most data collected on a scale this large, you’re usually getting data that’s at least a year or two old.

While the information may appear about as current as your iPhone 3 today, it does help make one thing clear about what’s going on right now in the car insurance industry.

Premiums are increasing (as if we had to tell you that)! This is according to the NAIC’s “Auto Insurance Data Base Report 2009/2010,” which was released in late December.

Yep, car insurance premiums rose by less than one percent in 2010 from the previous two years.

For the record, Washington D.C. and Louisiana continue to be the most expensive jurisdictions to insure your car.

Where does your state land? Check out a previous TTAI post with the rankings on a state-by-state basis.

Why Should I Care?

You already know your premiums went up a little in 2010 (and 2011 & 2012 for that matter), but this information helps prepare us for the coming years.

According to Insurance Information Institute President and Chief Economist Robert Hartwig, the figures underscore a general pattern in auto insurance pricing.

Put bluntly; you should expect car insurance premiums (and homeowners as well) to continue to increase in the foreseeable future.

Hartwig says premium and expenditures will likely continue to increase for a number of reasons, such as insured losses from severe weather damage throughout the country, and consumers replacing older cars they held on to during the economic downturn.

Again, in layman’s terms, you’re paying more for auto insurance due to Superstorm Sandy and all the newer cars on the road.

But you didn’t buy a new car. It doesn’t matter. If insurers are paying higher insurance claim amounts for accidents, we all share in the cost.

Winners and Losers?

Take a look at the image below to see the top five highest and lowest jurisdictions in the United States to see if your state was part of the top five most expensive or cheapest.

NAIC 2010

Tip: How are auto insurance rates determined?

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