Top 5 States for Auto, Homeowners Rates Hikes Revealed: Perr&Knight

Personal auto insurance companies increased their rates by an average of 2.5 percent countrywide in 2013, according to insurance consulting firm Perr&Knight’s RateWatch reports.

The 2013 increase is in line with a five-year trend of annual average rate increases of 2-4 percent, and was lower than the 2012 countrywide rate increase of 3.7 percent.

The five states with the highest overall increases in 2013 were:

Michigan, 8.6 percent
Georgia, 5.2 percent
New York, 4.3 percent
Delaware, 4.3 percent
Nevada, 4.1 percent

No states experienced an overall reduction in rates between 2012 and 2013; however, 2013 rates in North Dakota remained at 2012 levels overall.

Figures compiled for homeowners show that insurance companies increased their rates by an average of 5.1 percent countrywide in 2013, while renters insurance rates were up 2.6 percent and condominium insurance rates rose 2.9 percent.

Annual average rate increases have varied 5-7 percent for homeowners insurance, 2-4 percent for renters insurance and 2.5-6 percent for condominium insurance over the last five years.

The five states with the highest overall increases in 2013 for homeowners insurance were:

Oklahoma, 12.1 percent
Florida, 11 percent
Kentucky, 10.9 percent
Kansas, 10.3 percent
North Carolina, 10.1 percent

The only state experiencing a double-digit increase in renters or condominium rates was North Carolina, where rates increased 18.7 percent for each.

Two states experienced overall decreases in homeowner insurance rates in 2013, with California at -3.4 percent and Hawaii at -0.7 percent.

Insurers in California also decreased their overall renters rates by -1.8 percent and condominium rates by -1.4 percent in 2013.

“Overall, there were moderate rate increases for both auto and homeowners insurance in 2013. Our RateWatch product provides visibility into these changes by accumulating the approved rate changes extracted from the public rate filings of companies representing about 80 percent of the personal insurance premiums written,” said Perr&Knight CEO Tim Perr.

Source: Perr&Knight