Eben Pagan : Ohio, has very low auto insurance quote. Will the same premium prevail in 2010?

Response : It is indeed true that Ohio is the 11th lowest auto insurance rates in the nation, improving from its ranking of 13th in 2007. The auto insurance premium for Ohio on an average is $633.31 in auto insurance premiums in 2008, whilst the average US auto insurance premium are $794.98.

The Ohio Department of Insurance reports that auto insurance rates in that state have declined for the third consecutive year, according to the 2006/2007 Auto Insurance Database Report just released by the National Association of Insurance Commissioners (NAIC).
“Ohio has a healthy, dynamic and competitive auto insurance marketplace that helps drive the prices of premiums lower to the benefit of consumers,” said Ohio Department of Insurance Director Mary Jo Hudson.
Ohio’s average auto premium is less now than it was seven years ago, according to the Ohio Insurance Institute (OII). In 2002, Ohio’s average auto insurance expenditure was $642. Based on the NAIC findings for 2007 and the Ohio Department of Insurance (ODI) 2008 rate change report, OII estimates that the average auto insurance expenditure for Ohioans was $633 in 2008.
Department of Insurance analysts expect that rates for automobile insurance, overall, will slightly rise in 2010. Changes in automobile insurance rates can be attributed to repair costs, medical costs, weather-related claims, and the number of cars on Ohio roads.

What is important to note here is that the auto insurance rates are related to the auto claims expenditure and since these expenditures have remained low and this has helped in keeping the low auto insurance quotes. We all can help ourselves by being responsible auto drivers.
Thanks.
Kamlesh

Eben Pagan (New York): My auto insurance policy is going to be renewed by the end of this month and I live in New York. Can you please tell me about No fault car insurance in New York?

Response: Eben, I know you will find this odd, but the best way to get the best auto insurance rates is to compare auto insurance quote online and am sure you get the best deals. Online auto insurance is competitive and they offer you the latest discounts and best rates since they know that there are already a couple of  insurers offering their rates on the same page.

Let me shate another news with you which you might have read regarding No fault car insurance in New York.

New York’s auto insurers saw their typical no-fault payment for the medical care of accident victims rise by 56 percent to $8,748 per claim in the second quarter of 2009. This represents a dramatic increase from late 2004, when the average no-fault payment stood at $5,615 per claim, according to an Insurance Information Institute (I.I.I.) analysis.

The insurance industry, the New York State Insurance Department’s (NYSID) Frauds Bureau, the National Insurance Crime Bureau and law enforcement agencies continue to investigate suspicious claims vigorously, according to Dr. Robert Hartwig, the I.I.I. president and an economist. Yet loopholes in the no-fault system make it particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.

“In less than five years, New York’s auto insurers have seen an extraordinary 56 percent increase in the average cost of no-fault claims, to a great extent the result of abuse and, sometimes, outright fraud in the system,”

“The costs of fraud and abuse of the state’s no-fault system ultimately are borne by New York’s honest policyholders. New York’s no-fault claim costs are now the second highest in the country and are 111 percent higher than the U.S. average of $4,152.”

The reason for letting you know all these details is to explain why the auto insurance rates are likely to rise. This is because the insurance companies base their auto insurance rates on their expenses and no fault claims expenses are a part of the expenses which all the insurance companies have to share and pay for.

The insurance companies offer a higher discount online since they save their operating cost. When you compare car insurance quote online make sure that you are also comparing your coverages and the discounts offered. I am sure you will find a good quote here.

Thanks.

Kamlesh

Eben Pagan : How is the auto insurance rate determined? Will knowing this help in getting low auto insurance rate or low auto insurance rates?

Low auto insurance rates – easy way is review car insurance
Response : Eben,an easy way to get a low auto insurance rate is to reveiw car insurance coverage and compare auto insurance quote online. Yest you will need to understand how the rates are determined. The reason is we think logically, hence if we know the reasoning behind we can work accordingly.

It would be interesting to know exactly on what basis the rates are decided by the insurance companies so that you will learn why the auto insurance quotes differ from state to state or from company to company.

 The insurers basically take into consideration their expenses for paying claims and operating the business, plus some amount of profit for shareholder. Secondly they want to charge higher rates to the persons who have had claims to balance the risk. Lastly the insurers want to take into consideration the competition existing in the market.

 Besides this is most important for car insurance is that they have the governing rates or limits imposed by the state authorities. Here is the link to the web-site where one can know more about the State Government Regulations.

 Generally the insurance companies divide the risk as per the expected exposure of the risk in three categories a) Low risk (preferred) b) Medium risk (standard) and c) High risk ( Non-standard). The classification into categories is done based on the type of car, the purpose of use of the auto, the driver who is driving the auto, geographical region and other considerations.

It is this classification that might vary from insurance company to company based on the underwriting philosophy, claim experiences and business portfolio. This is why a prudent person needs to compare auto insurance quote.

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