Ohio Department of Insurance Director Mary Jo Hudson announced that the average rates for the state’s top 10 private passenger auto insurers increased 2.8 percent in 2009. The average rates for the state’s top 10 homeowners increased by 9.7 percent in 2009.
“While we did experience premium rate increases in 2009, it’s important to remember that Ohio still has some of the lowest insurance rates in the nation,” Director Hudson said. “The Department will continue to monitor these markets, and also assure that Ohioans have access to competitive coverage.”
Ohio has the eleventh lowest auto insurance and sixth lowest homeowners insurance average premiums in the country, according to the most recent figures from the National Association of Insurance Commissioners (NAIC).
Unfortunately, in 2008, Ohio saw some of its worst weather-related losses in almost a century. Storms caused insured losses of over $1.4 billion throughout Ohio in 2008. Losses of this sort are the primary reason for the rate increases.
Based on the rate activity thus far and industry data, Department analysts expect the 2010 rate activity to continue similarly as it did in 2009.
For auto insurance, the average rates will likely increase slightly.
For homeowners insurance, the average rates will likely increase.
Changes in auto insurance rates are associated with medical costs, weather-related claims, the number of cars on Ohio roads and repair costs, while changes in homeowners insurance rates can be attributed to building and material costs and weather-related claims.
Source: Ohio Department of Insurance