Auto Insurance Rates Decline in 2005

The results are in and the Insurance.com 2005 Auto Insurance Pricing Report shows that many drivers experienced a reprieve in 2005 from the high costs of auto insurance rates.
In the survey of 46 states, the District of Columbia and nearly nine million auto insurance quotes provided by its customers, Insurance.com found an overall decline in the 2005 national average for auto insurance rates, resulting in a rate fall for over 21 states. That’s a 2% decline from 2004, saving many households an average of $60 per year.

Despite the overall decrease, Insurance.com found many states that normally enjoy lower auto insurance rates experienced an increase from 2004 to 2005. And states that experienced a rate decrease are still paying some of the highest car insurance rates in the country. These statistics leave many drivers wondering why, at a time when insurance rates are down, do so many states still feel a price crunch.

It turns out that where you live still plays a large role in how much you pay for auto insurance. For instance, New Yorkers paid an average of $3,165 for automobile insurance in 2005-a 3.4% decrease from 2004. And Louisiana residents paid an average of $3,100-a 4.9% decrease from 2004. However even with the rate reductions, both states remain the most expensive states in the country for auto insurance. Due in part to the cities’ limited parking, higher traffic population, greater theft rate and increase in uninsured drivers

2005 Auto Insurance Pricing Report*

Top ten states with the largest percentage decrease:


State
2004 Premium
2005 Premium
Difference (Decrease)
Change from 2004

PA
$2,764.42
$2,497.03
($267.38)
-9.7%

NH
$2,197.31
$1,988.05
($209.26)
-9.5%

CO
$2,399.57
$2,194.42
($205.15)
-8.5%

MN
$2,372.35
$2,172.91
($199.44)
-8.4%

OH
$1,921.47
$1,805.94
($115.53)
-6.0%

TX
$2,644.32
$2,490.21
($154.11)
-5.8%

IL
$2,121.47
$2,005.81
($115.66)
-5.5%

LA
$3,258.55
$3,099.40
($159.15)
-4.9%

MO
$2,102.63
$2,000.61
($102.02)
-4.9%

CT
$2,595.71
$2,504.80
($90.91)
-3.5%



Top ten states with the largest percentage increase:

State
2004 Premium
2005 Premium
Difference (Decrease)
Change from 2004

ND
$1,803.36
$2,086.95
$283.58
15.7%

DC
$2,353.65
$2,704.07
$350.42
14.9%

NE
$1,805.63
$2,010.11
$204.48
11.3%

MT
$1,863.66
$2,064.15
$200.49
10.8%

ME
$1,437.42
$1,586.82
$149.39
10.4%

DE
$2,092.05
$2,262.61
$170.56
8.2%

OR
$1,812.94
$1,929.76
$116.83
6.4%

VT
$1,604.22
$1,706.32
$102.10
6.4%

AL
$1,944.71
$2,064.12
$119.41
6.1%

UT
$1,816.72
$1,921.16
$104.44
5.7%



So should you start packing your bags and move to a different state? Not so fast! Where you live does matter, but it is not the only factor insurance companies consider when quoting an insurance rate, they also take into account the following:

Driving violations
Your vehicle
Accident claims
Credit rating
Occupation
Age
Curious to see how your state fared? Below is a list of the 46 states plus the District of Columbia that Insurance.com serves on a daily basis. The list does not include MA, HI, AK who are not serviced by Insurance.com or New Jersey who joined our platform in 2005. States are ranked in alphabetical order:

State
Avg. 2004 Premium
Avg. 2005 Premium
Difference (Decrease)
Change from 2004

AL
$1,944.71
$2,064.12
$119.41
6.1%

AR
$2,213.59
$2,200.91
($12.68)
-0.6%

AZ
$2,516.84
$2,587.96
$71.12
2.8%

CA
$2,249.01
$2,185.97
($63.04)
-2.8%

CO
$2,399.57
$2,194.42
($205.15)
-8.5%

CT
$2,595.71
$2,504.80
($90.91)
-3.5%

DC
$2,353.65
$2,704.07
$350.42
14.9%

DE
$2,092.05
$2,262.61
$170.56
8.2%

FL
$2,512.83
$2,426.98
($85.85)
-3.4%

GA
$2,149.32
$2,136.80
($12.53)
-0.6%

IA
$1,542.11
$1,621.60
$79.49
5.2%

ID
$1,703.04
$1,738.37
$35.33
2.1%

IL
$2,121.47
$2,005.81
($115.66)
-5.5%

IN
$1,934.56
$1,867.70
($66.87)
-3.5%

KS
$2,036.25
$2,107.52
$71.26
3.5%

KY
$2,505.32
$2,569.39
$64.07
2.6%

LA
$3,258.55
$3,099.40
($159.15)
-4.9%

MD
$2,772.97
$2,813.10
$40.14
1.4%

ME
$1,437.42
$1,586.82
$149.39
10.4%

MI
$2,596.29
$2,574.60
($21.69)
-0.8%

MN
$2,372.35
$2,172.91
($199.44)
-8.4%

MO
$2,102.63
$2,000.61
($102.02)
-4.9%

MS
$2,284.23
$2,278.46
($5.78)
-0.3%

MT
$1,863.66
$2,064.15
$200.49
10.8%

NC
$1,300.71
$2,202.94
$902.23
69.4%

ND
$1,803.36
$2,086.95
$283.58
15.7%

NE
$1,805.63
$2,010.11
$204.48
11.3%

NH
$2,197.31
$1,988.05
($209.26)
-9.5%

NM
$2,150.04
$2,157.34
$7.30
0.3%

NV
$2,602.77
$2,557.41
($45.36)
-1.7%

NY
$3,275.79
$3,164.54
($111.24)
-3.4%

OH
$1,921.47
$1,805.94
($115.53)
-6.0%

OK
$2,220.02
$2,181.23
($38.80)
-1.7%

OR
$1,812.94
$1,929.76
$116.83
6.4%

PA
$2,764.42
$2,497.03
($267.38)
-9.7%

RI
$2,813.50
$2,872.84
$59.34
2.1%

SC
$1,971.76
$2,047.26
$75.50
3.8%

SD
$1,737.81
$1,837.24
$99.43
5.7%

TN
$1,876.92
$1,945.70
$68.78
3.7%

TX
$2,644.32
$2,490.21
($154.11)
-5.8%

UT
$1,816.72
$1,921.16
$104.44
5.7%

VA
$1,836.75
$1,908.54
$71.80
3.9%

VT
$1,604.22
$1,706.32
$102.10
6.4%

WA
$2,227.99
$2,348.78
$120.80
5.4%

WI
$1,827.25
$1,767.97
($59.28)
-3.2%

WV
$2,528.90
$2,532.29
$3.39
0.1%

WY
$2,096.45
$2,180.72
$84.27
4.0%



About 2005 Auto Insurance Pricing Report
Insurance.com’s 2005 Auto Insurance Pricing Report highlights the average change in auto insurance premium quotes. The report compares the average auto insurance premium in 2005 against the average premium for the full year in every state*. The information comes from actual auto insurance quotes consumers received from over a dozen of the nation’s leading auto insurance companies who participate on Insurance.com’s comparative auto insurance platform. The quote information was collected from more than two million auto insurance quotes provided by Insurance.com to its customers in 2004 and over seven million insurance quotes collected in 2005.


*Note: While the “2005 Auto Insurance Pricing Report” is a broad indicator of pricing activity in the personal auto insurance marketplace it reflects only the pricing activity of carriers that have participated in the ComparisonMarket auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, Massachusetts, New Jersey) and the aggregate profile of consumers who shop using the ComparisonMarket platform