One major finding when comparing Insurance Information Institute and NAIC data was that, on average, Ohioans actually will pay less for auto premiums this year than they did 12 years ago.
In 2003, the average yearly cost for car insurance was $672. Projections for next year predict that auto coverage will cost an average of $671. The U.S. average for 2014 is expected to be $846.
One of the main factors driving lower rates is competition. American Family Insurance agent June Smith, who has an office in Dayton, said that many insurance companies are headquartered in Ohio, due to fewer risk factors facing consumers.
Floods and other natural disasters happen less frequently in this state, she said.
“Rating factors are positive in Ohio, but it’s all relative,” Smith said. “Rates also still depend on where you live, who drives your vehicle, how many claims you have, your age, and other factors.”
Florida had the highest average homeowner rates at $1,933. New Jersey had the highest average auto rates ($1,184). Idaho had the lowest rates for both types of policies.
According to the Ohio Insurance Institute, Ohio ranks third in the U.S. when it comes to the number of insurance companies competing for your business. Illinois and Texas rank first and second, respectively.
Mitch Wilson with the Ohio Insurance Institute agrees that competition in the state is the driving force behind the lower rates.
“Ohio is a good business climate, and it’s pretty amazing, because not many other states can say their rates are so low, but if you still feel like your bills are too high, shop around,” he said.
Wilson said consumers should start looking for better deals about two months before their premiums are due. Asking what is not covered in a policy also is an important step.
“It’s the simplest way to compare policies, and gets to the bottom of some rate fluctuations from company to company,” he said.