The average auto insurance premium in the United States increased six percent from 2002, to about $939 in 2003, according to the 2002/2003 Auto Insurance Database Report, recently published by the National Association of Insurance Commissioners.
The report, which outlines the average costs associated with personal automobile insurance on a state-by-state basis, is intended to provide insurance regulators, consumers, and legislators with information and analysis of auto insurance information. Included in the report are written premium and exposure data, as well as incurred loss and claim data.
In 2003, drivers in 15 states paid more than $1,000 for their annual premiums, with the highest average premiums being charged in New Jersey ($1,365); New York ($1,313); the District of Columbia ($1,277); Rhode Island ($1,156); Louisiana ($1,174). Other states in which average premiums exceeded $1,000 were Massachusetts, Alaska, Florida, Connecticut, Michigan, Arizona, Colorado, Delaware, Nevada, and West Virginia. Drivers enjoyed the lowest average premiums in Iowa ($679), Wisconsin ($693), and North Dakota ($695).
The commissioners acknowledged that requirements for insurance coverage, limits, and benefits differ from state to state. Factors that affect expenditures and premiums include underwriting costs, driving locations, accident rates, traffic density, auto theft rates, repair costs, and state auto laws. The NAIC cautions that these variances make direct state-by-state comparisons difficult.
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