But there's good news for Ohio drivers: Insurance here remains 2 8 percent lower than the U.S. average, according to reports released this week by the Ohio Department of Insurance and the Ohio Insurance Institute.
Auto insurance in Ohio remains among the lowest in the nation, in part because of the competition here, they say.
"We are focused on cultivating a competitive insurance market that benefits the consumer . That focus is generating some of the lowest premiums in the country," Mary Taylor, lieutenant governor of Ohio, who also serves as director of the Ohio Department of Insurance , said in a statement .
Auto insurance in Ohio averaged $659 a year, according to a report released last month by National Association of Insurance Commissioners. The figure is for 2013, the latest available in the 2016 report.
That represented the 12th-lowest annual premium in the nation, Taylor said, and 28 percent lower than the U.S. average of $841.
Last year, the average annual premium in Ohio jumped to $698, based on estimates, an increase of 3.3 percent from 2014. The figures are based on the premium per insured vehicle, assuming they carry liability but not necessarily comprehensive and collision coverage for their own vehicle.
That's $200 less than the national average of $899.
You can thank the heavy competition in Ohio. This state is among a handful of states with the greatest number of insurers. Mary Bonelli, spokeswoman for the Ohio Insurance Institute, said Ohio is an attractive business environment for auto insurers.
Still, the annual increases we're seeing now are a little surprising.
Since 2003, there's been only one year with a larger increase, and that was 3.8 percent in 2013. And for five years, 2005, 2006, 2007, 2008 and 2009, the average auto insurance premium in Ohio actually dropped.
There are four issues driving up insurance premiums, Bonelli said:
1. "What we're finding is the frequency and severity of crashes has gone up," she said.
2. Costs for repairs have increased, in part because vehicles today are filled with fancy computers and all kinds of cool technology.
3. Medical expenses continue to soar.
4. Because gasoline prices have dropped by more than half in the last few years, people are driving more, Bonelli said. A lot more. Insurers calculate that that means more risk.
Ohio's top 10 insurers, which represent 76 percent of the market, posted an average increase of 2.6 percent in 2014. Nationwide and Westfield had the lowest increases, at less than 1 percent. The company with the greatest increase was Liberty Insurance, at 5 percent, followed by Progressive, at 4.6 percent.
Learn how to save on insurance:
The Ohio Department of Insurance offers money-saving tips and consumer guides at www.insurance.ohio.gov
Or consumers can call the department at 1-800-686-1526 with insurance questions.
The Ohio Insurance Institute predicts another average increase of 3.3 percent in 2016, which would boost the average premium per vehicle to $721, compared to $929 nationally.
Taylor, the lieutenant governor, stresses that consumers should price-shop carefully. One way to lower premiums, she said, is to increase the deductible.
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Source: http://docphy.com/business-industry/personal-finance/insurance/auto-insurance-ohio-increasing-second-highest-rate-12-years.html
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