Insurance.com: Auto Rates Keep Rising

Auto insurance rates continued to rise for the second quarter this year, according to a study by Insurance.com.

Insurance.com’s quarterly Car Insurance Rate Report found that the lowest car insurance quotes, on average, increased 3.4% over the previous quarter, rising from $1,831 per year to $1,893 per year. The rate report is based on real-time auto insurance quotes given to consumers from more than a dozen insurance companies during the second quarter. It marks the second consecutive quarter of rate increases, following last quarter’s 1% increase, reversing the trend of steady or falling auto rates for the past several years.

“Our quarterly rate report is a leading indicator of where auto insurance rates are heading,” said Dave Roush, CEO of Insurance.com. “Car insurance companies are continuing to raise prices due to rising medical costs and the rising cost of repairing vehicles. We believe rates will continue to increase through 2009 as carriers adjust their rates to compensate for these costs.”

Car insurance rates vary by state, and some states experienced rate quote increases in the second quarter that were greater than the average. Indiana and Texas, for example, saw rates jump 6.7% and 4.3%, respectively.

Individual states, companies or industry groups might report annualized increases that are still quite small, as their data reflects the past 12 months, when rates were falling or holding steady. The Insurance.com data, however, is real-time, representing the real-world experience of consumers who have gotten an online or phone quote for auto insurance in the last three months.

“Now, more than ever, consumers should compare car insurance rates before they renew their policies,” added Roush. “If they comparison shop and follow some simple strategies, they may realize hundreds of dollars in savings with a new company.”

Additional Findings

• The most expensive auto insurance quotes were in Louisiana ($2,577), New Jersey ($2,544) and Washington, DC ($2,466).
• Among the top 10 states seeing the sharpest increase in car insurance rates in the 2^nd Quarter were Indiana (up 6.7%), Arkansas (up 6.1%), Texas (up 4.3%), Nevada (up 4.1%) and Illinois (up 3.8%).
• The least expensive states for auto quotes in the second quarter included Ohio ($1,268), Wisconsin ($1,276) and Maine ($1,285).