Ohio Personal Lines Premiums Remain Lower than U.S. Average

August 5, 2009

The Ohio Insurance Institute (OII) recently reported that premiums for homeowners and auto insurance in that state remain lower than the U.S. average. On its Web site, www.ohioinsurance.org, the OII released the following information regarding Ohio’s auto and homeowners insurance premiums:

Homeowners Insurance

  • Based on 2006 data released by the National Association of Insurance Commissioners (NAIC) (report released March 2009), Ohioans pay nearly $274 less for homeowners insurance than the US average. The average HO expenditure in Ohio in 2006 was $530 compared to the US average of $804.
  • According to the 2009 NAIC report, Ohio’s average homeowners insurance expenditure of $530 is fifth lowest in the US (tied with Delaware). In 2005 it was $531 and 2004 it was $523. These average expenditures are based on the type of coverage that most Ohio homeowners purchase.
  • Ohio’s average homeowners (HO) insurance premium has risen over the past two years. However in 2006 it decreased by .6 percent. Even with an increase of 8.3 percent in the past 2 years, the average Ohio HO premium rose from $530 to $575 between 2006-08 (based on Ohio Department of Insurance homeowners insurance rate change information for 2007-08).

Auto Insurance

  • Based on 2006 data by the NAIC (report released November 2008), Ohioans pay nearly $163 less for auto insurance than the US average. The average auto insurance expenditure in Ohio in 2006 as $654 compared to the US average of $817.
  • According to the 2008 NAIC report, Ohio’s average auto insurance expenditure premium of $654 is the 13th lowest in the country. In 2005 it was $670 and 2004 it was $680.
  • Ohio’s average auto premium is less now than it was four years ago. In 2004 it was $680 according to the NAIC. Based on the Ohio Department of Insurance (ODI) rate change report, it was $643 in 2008.

General Points About Ohio Insurance Premiums

  • The Top 10 Ohio writers of auto insurance reported rate changes from 0 percent to 2.6 percent in 2008, according to the ODI. The Top 10 homeowners insurers reported premium rate changes of -0.5 percent to 13.1 percent in 2008.
  • Policyholders insured by the same company may experience different premium adjustments, depending on coverage choices, personal claims history and company subsidiary.
  • In September 2008, Ohio experienced the costliest natural disaster in recent history. Remnants of Hurricane Ike caused $1.3 billion in insured losses in the Buckeye state. Insurers cannot raise premiums to recoup past losses but can make determinations based on future or potential risk.
  • Insurers submit rate filings to the Ohio Department of Insurance with actuarial justification for any proposed rate change. The ODI, as the state’s insurance regulator, reviews such filings and can deny any premium increase that it does not find to be substantiated.
  • Based on ODI rate reports, between 2004-08 the top 10 Ohio HO writers increased HO premiums an average of 2 percent a year during that 5-year period and the top 10 auto writers averaged close to a 0.8 percent premium decrease. During the same period, the Consumer Price Index (Cost of Living Index) rose 13.4 percent.
  • Ohio’s home and auto premiums remain affordable. Consumers benefit from the hundreds of companies providing insurance coverage in the Buckeye state. Only Illinois and Indiana have more auto insurance providers than Ohio, and only Illinois and Pennsylvania have more writers of homeowners insurance.

Source: Ohio Insurance Institute

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