Ohio Auto, Homeowners Rates among the Lowest in Nation

Ohio automobile insurance consumers continue to fair well when compared to consumers in other states according to Ohio Insurance Director Lee Covington.

According to an annual survey and analysis of national automobile insurance costs released by the National Association of Insurance Commissioners (NAIC), Ohio consumers who purchased liability, collision, and comprehensive coverage for their automobiles enjoyed the 7th-lowest cost in the nation.

In addition, the most recent NAIC study of homeowners’ insurance rates ranked Ohio as the third-most affordable state for that kind of insurance.

Costs for comprehensive auto coverage in Ohio, which covers damage to an insured’s vehicle from causes other than a collision, are the best in the nation.

Covington chairs the NAIC Statistical Information Task Force, which compiled the statistics and issued the report.

The NAIC State Average Expenditures and Premiums for Personal Auto Insurance Report, which compared 2000 premium data (the most recent available) from insurers nationwide, also revealed that the average expenditure for Ohio automobile insurance was $579, which ranks 15th in the nation. Nationally, the average expenditure for an automobile policy was $687.

In last year’s report, Ohio ranked 11th in the country for those purchasing all three kinds of coverage and ranked 15th for overall average expenditure.

The report’s Combined Average Premium measures the average cost for an insurance consumer who purchases all three kinds of automobile coverage. Not every consumer chooses to purchase all three kinds of coverage – for example, a consumer may choose not to pay for collision coverage on an older vehicle with little monetary value, or may chose to not purchase comprehensive coverage. State law requires all registered Ohio vehicles to meet minimum financial responsibility standards – most automobile owners comply with that law by obtaining liability insurance.

The Average Expenditure in the report measures the average amount automobile insurance consumers pay for their insurance, regardless of the kinds of coverage they purchase.

The report showed that the least expensive state in the country for combined annual premium was Iowa, with New Jersey reporting the highest cost. North Dakota was the most affordable state for average expenditure, while the District of Columbia came in last in that category.

The report only includes insurance purchased for personal vehicles, and does not include data for commercial automobile insurance policies, such as those purchased by companies to cover their company-owned vehicles.

“While every consumer in the country has experienced increases in the cost of their insurance coverage, this report demonstrates that Ohio consumers are benefiting from the competitive, cost-effective insurance market in this state,” said Covington.

Topics Auto Ohio Homeowners