Insurance.com’s RateWatch closely monitors auto insurance quotes in 46 states plus the District of Columbia. Drivers in 38 of these jurisdictions received average premium quotes in December 2009 that were lower than auto insurance rates quoted in January.
Nationally, average auto insurance premiums for the U.S. were 5.2% lower at the end of 2009 than they were at the start of the year.
Starting with territories posting the highest declines, the following lists organize the 38 jurisdictions with lower rates by percent changes in average auto insurance premiums in December compared with rates quoted during January 2009.
Top 10 Places for Auto Insurance Rate Savings in 2009
Among the top 10 jurisdictions with the greatest percentage savings in auto insurance rates during 2009, 9 had double-digit percentage declines. For each state, the average quoted premium as of December 2009 is shown followed by the percentage change since January 2009.
- Arizona … US$1,450 annual premium (down 19.9% from January 2009)
- North Dakota… $1,414 (down 14.4%)
- District of Columbia… $2,700 (down 14.3%)
- New Hampshire… $1,350 (down 13.6%)
- Maine… $1,185 (down 12.7%)
- Wyoming… $1,596 (down 12.3%)
- Vermont… $1,260 (down 11.6%)
- Pennsylvania… $2,058 (down 10.2%)
- Nebraska… $1,485 (down 10%)
- Virgina… $1,521 (down 9.7%).
The average percentage savings is 12.9% for drivers located in the above states and district. Among these states, Maine had the lowest average annual auto insurance quote of $1,185.
Significantly Lower Average Car Insurance Quotes
For 2009, quotes to insure vehicles in the following states also had average percentage declines above 5%.
- Nevada … US$1,978 annual premium (down 9.3% from January 2009)
- New Mexico … $1,709 (down 9%)
- Colorado … $1,538 (down 8.7%)
- North Carolina … $1,537 (down 8.7%)
- Utah … $1,672 (down 8.4%)
- Washington … $1,746 (down 7.8%)
- Arizona … $1,814 (down 7.8%)
- Ohio … $1,222 (down 7.8%)
- Kansas … $1,603 (down 7.7%)
- Tennessee … $1,455 (down 7.7%)
- Montana … $1,546 (down 6.8%)
- West Virginia … $1,964 (down 6.2%)
- Texas … $1,856 (down 6.1%)
- Indiana … $1,440 (down 5.4%)
- Oregon … $1,552 (down 5.4%)
- Louisiana … $2,496 (down 5.1%).
For these 16 states, the average decrease in car insurance rates was a 7.6% drop during 2009. Drivers in Ohio enjoyed the lowest average auto insurance quote of $1,222 among this group.
States Showing Smaller Insurance Rate Declines
During 2009, the 12 states below had decreases in average premium quotes under 5%. Delaware, Iowa and Missouri had potential savings under 1%.
- California … $1,754 annual premium (down 4.6% from January 2009)
- Oklahoma … $1,761 (down 4.3%)
- Rhode Island … $2,362 (down 4.3%)
- Mississippi … $1,920 (down 3.7%)
- Missouri … $2,060 (down 2.7%)
- Illinois … $1,499 (down 2.7%)
- Georgia … $1,635 (down 2.3%)
- Alabama … $1,610 (down 1.9%)
- Connecticut … $2,062 (down 1.4%)
- Delaware … $2,470 (down 0.8%)
- Iowa … $1,287 (down 0.1%)
- Missouri … $1,636 (down 0.1%).
Rates were down an average 2.4% for the above 12 states viewed as a group.
Insurance Rate Changes from November to December 2009
This brief analysis shows that drivers in 8 states plus the District of Columbia enjoyed deep, double-digit auto insurance rate decreases in 2009. Drivers in 30 other states received lower quotes as well.
But if average rate quotes in December are any indication, auto insurance premiums may well be on their way back up in 2010.
Average rates in December were higher than November 2009 premium quotes for 3 of the top 10 jurisdictions for auto insurance savings for all of 2009. Premiums in Nebraska were up 8.9%, while rates in Vermont and Wyoming jumped 6.1% and 3.2% respectively from rate quotes for November.
Rates rose from November in 26 of the 48 jurisdiction that RateWatch tracks.
RateWatch also reports that average national auto insurance rates increased by about 1%, from $1,803 in November to $1,821 for December 2009.
This is the largest month-to-month rise that RateWatch has reported since October 2008. This spike makes some analysts say that 2010 is the start of a trend for higher auto insurance premiums.
Sources: This analysis provides independent calculations and insights based on source data publicly available on Insurance.com, a leading third-party website committed to consumer education.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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