HOMEOWNERS RATES 4TH LOWEST IN NATION

Ohio insurance consumers continued to benefit from a healthy property/casualty market in 2004 and rates are not expected to change significantly in 2005, the state’s insurance department announced. Homeowners insurance rates offered by the state’s top ten insurers rose less than two percent in 2004 and automobile insurance rates rose at two-tenths of a percent. Both markets experienced their smallest increase in four years.

“Ohio has consistently ranked among the lowest premium states for both homeowners and auto, ranking 4th and 16th lowest respectively,” said Director Ann Womer Benjamin. “Ohio consumers continue to benefit from a healthy and competitive market.”

According to the department’s property/casualty division, homeowners insurance rates across the state rose 10.3 percent in 2003, following an 18.1 percent rise in 2002. In 2004, rates rose only 1.9 percent statewide. State Farm, Ohio’s largest home insurer with 22.6 percent of the market, dropped their rates nearly 5 percent while most other companies implemented small increases.

Over each of the past three years, auto rates have risen at slightly above 4 percent. In 2004, the average increase was only two tenths of a percent, considerably less than the three-year trend. State Farm, Nationwide and Erie insurance companies all implemented drops in rates according to the department. Other companies implemented small increases in the auto market. Department analysts expect that 2005 rates will rise moderately. Increases in homeowners insurance can be attributed to building and materials costs and weather-related losses, while auto insurance increases are associated with new vehicle and repair costs, medical costs, and weather.

Topics Auto Ohio Homeowners