Auto insurance rates are at all all-time high. Or so says the insurance search engine The Zebra. In its annual State of Auto Insurance Report The Zebra said rates have jumped 20% since 2011. The report is concerned with how insurers are determining rates.
Weather, driver behavior, legislation and technology have always been a part of rate hikes but spokesman Adam Lyons said there is now a big worry about how natural disasters like Hurricane Harvey are impacting things.
“Insurance companies leverage thousands of data points to determine car insurance rates — things like your age, driving record, and even your credit score. Today, we’re also seeing extraordinary forces like overnight tech innovation and devastating natural disasters impact rates,” he said.
The Zebra report looked at 52 million auto insurance rates across all zip codes and found:
• The national average is $1,427 — or 20% above 2011
• Some states have seen jumps of 60% since 2011
• Other states have seen increases of just 1%
• 10 states have seen decreases of up to 20%
• Rate changes from one year to the next go as high as 45% in some states
• Nationally the rate changes from year-to-year average 9%
• Some cities have annual premiums topping $6,000
• Michigan is the most expensive state and Detroit, Michigan the most expensive city
• Louisiana is the second most expensive state and New Orleans the second most expensive city
• Kentucky is the third most expensive state
That people in the nine PIA Western Alliance states pay more for auto insurance is not a surprise. The nine states — in case you don’t remember — are: Alaska, Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon and Washington.
Four PIA Western Alliance states are in the top-10 states with the worst drivers. They are Montana and Arizona that rank one and two and Nevada at number five and New Mexico is seven.
The National Highway Traffic Safety Administration said in the latest statistical year — 2015 — a devastating 35,092 people died in crashes. The number of vehicles involved is 48,923. The cost of the crashes topped $242 billion or a 7.2% jump over 2014.
As for which states have the worst drivers, the administration tallies it this way:
• Fatality Rate — The total number of traffic deaths for every 100 million vehicle miles traveled.
• Failure to Obey — The number of road fatalities involving failure to use safety restraints and individuals ignoring traffic safety devices and driving illegally with an invalid license.
• Drunk Driving — The number of fatal crashes involving a driver impaired by alcohol.
• Speeding — The number of driving deaths involving a driver who was speeding.
• Careless Driving — The number of pedestrians and pedal cyclists (usually bicyclists) killed by motorists for every 100 thousand residents.
Here are the top-10 worst driving states. The PIA Western Alliance states are in bold:
• Best Ranking: Careless Driving: 29th
• Worst Ranking: Failure to Obey: 1st
• Best Ranking: (Tie) Drunk Driving & Speeding: 15th
• Worst Ranking: Careless Driving: 6th
• Best Ranking: Speeding: 38th
• Worst Ranking: Failure to Obey: 2nd
• Best Ranking: Speeding: 20th
• Worst Ranking: Drunk Driving: 5th
• Best Ranking: (Tie) Fatality Rate & Drunk Driving:19th
• Worst Ranking: Failure to Obey: 5th
6. South Carolina
• Best Ranking: Drunk Driving: 29th
• Worst Ranking: Fatality Rate: 1st
7. New Mexico
• Best Ranking: Fatality Rate: 28th
• Worst Ranking: Careless Driving: 3rd
8. North Carolina
• Best Ranking: Drunk Driving: 26th
• Worst Ranking: Speeding: 7th
• Best Ranking: Drunk Driving: 32nd
• Worst Ranking: Careless Driving:1st
10. North Dakota
• Best Ranking: Careless Driving: 43rd
• Worst Ranking: Drunk Driving: 2nd
Source links: Insurance Business America, PropertyCasualty360.com