Regulator Study Shows Iowa Motorists Rank 50 Nationwide
Iowa motorists' ability to avoid accidents has made the state one of the cheapest place to buy auto insurance, an industry report says.
A survey by the National Association of Insurance Commissioners, found that in 2003-04 Iowa drivers paid an average of $686 in annual premiums. That's less than half of what auto owners paid in New Jersey, which has the most expensive average yearly rate of $1,386. Iowa ranks 50 out of 51 states.
USAA Insurance, a Texas-based company, has lowered auto rates in Iowa by 9 percent because it said motorists in the state are driving well.
Roger Wildermuth, a USAA spokesman, said the company made the move because its clients have filed fewer claims for accidents and thefts. Since USAA didn't have to fork out funds for claims, it had the leeway to lower fees, Wildermuth said.
Factors such as traffic congestion and regulatory rules for insurance companies also affect insurance rate averages, experts said.
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