Mo. Ranks 32nd in Costs for Insuring Passenger Cars, Trucks

Residents of 30 states and the District of Columbia on average paid more in 2000 to insure their autos than Missourians, according to a new national study.

With about 4 million passenger cars and trucks on the road in the state, Missourians save a projected $300 million compared to the national average on insurance expenses. From 1996 to 2000, the average cost of insurance coverage for Missouri vehicles rose only 2.1 percent, or far less than the 9.7 percent increase in general inflation.

Missouri retained its No. 32 rank from 1999 for the average cost of passenger vehicle coverage in the latest report from the National Association of Insurance Commissioners. The association, based in Kansas City, includes all the state and territorial insurance directors, including Scott Lakin of Missouri.

“Missouri’s relatively low costs are testimony to the advantages that consumers enjoy when more than 240 insurers are competing for their auto insurance business,” Lakin said.

Missouri historically has relied on competition to keep rates low—rather than a system of state government rate-setting.

Overall, Missourians paid an average of $611.73 to insure each vehicle in 2000—$75 or 10.9 percent less than the national mean of $686.71.

The savings were similar for Missourians who carry full coverage—liability, comprehensive and collision—on their autos. They had average costs of $709.59 in 2000, compared to the national average of $785.80, and Missouri ranked No. 34.

For liability, which covers damages to other vehicles and persons in an accident, Missouri auto owners paid an average of $331.36, versus $397.58 nationwide. Missouri law requires car owners to carry policies with minimum benefits of $25,000 for medical treatment per injured person, $50,000 in medical treatment per accident and $10,000 in property damage to others.

Most owners, however, carry more coverage to protect their assets, and MDI generally recommends these higher limits to safeguard drivers and victims of accidents. While comprehensive and collision coverages are not mandatory, about two-thirds of Missouri auto owners buy policies with those benefits.

Missouri’s costs rose much closer to the national average for those coverages. On collision, which repairs damage to a driver’s own car if he/she causes an accident or is hit by an uninsured or unknown motorist, Missourians paid an average of $251.06, ranking No. 22, compared to the national mark of $256.58.

For comprehensive—which repairs damage to the owner’s vehicle from vandalism and acts of God—Missouri costs averaged $127.18 or No. 28 in the nation. The countrywide average was $131.64.

From 1999 to 2000, the increase in average expenditures for Missouri auto coverage reached only 1.1 percent.

The average expenditure for liability coverage actually fell 6.9 percent from 1996 to 2000 while collision premiums rose 19.4 percent and comprehensive increased 8.1 percent.

Topics Auto Missouri