Auto and Homeowners Rates Increase Moderately in 2013

March 13, 2014

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

The 2013 increase is in line with a five year trend of annual average rate increases between 2 and 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 at 8.6 percent, Georgia at 5.2 percent, New York and Delaware at 4.3 percent, and Nevada at 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 between 5 and 7 percent for homeowners insurance, 2 to 4 percent for renters insurance and 2.5 to 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 at 12.1 percent, Florida at 11.0 percent, Kentucky at 10.9 percent, Kansas at 10.3 percent and North Carolina at 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, California and Hawaii, experienced overall decreases in homeowner insurance rates in 2013 of -3.4 percent and -0.7 percent, respectively.  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% of the personal insurance premiums written,” said Tim Perr, Perr&Knight’s CEO.

 

Source: RateWatch

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