Do your customers think their auto insurance premiums are hefty? If they live in these 10 states, they might have a point.
The National Association of Insurance Commissioners (NAIC) has released its 2011/2012 Auto Insurance Database Report, including calculations for average annual auto insurance premiums for all 50 U.S. states and the District of Columbia. The NAIC Property and Casualty Insurance Committee directed the Casualty Actuarial and Statistical Task Force to develop the report, which is intended to help states assess their insurance markets.
The report uses written premium and exposure data obtained statistical agents for the years 2008-2012 for the combined voluntary and residual market. NAIC identifies premium and average expenditure, pure premium, loss ratio, claim frequency, and claim severity for each state, as well as auto insurance coverages including bodily injury and property damage liability (including no-fault), uninsured and underinsured motorist coverages, medical payments, collision, and comprehensive.
The full report (download the full NAIC report HERE) contains a database with information about cost factors relative to auto insurance in each state, including traffic conditions, medical costs, crime rates, auto repair costs, economic conditions, and state laws related to auto insurance.
The national average auto insurance premium is $927.58, and all of the most expensive states for auto insurance have average premiums that are higher than that.
Click through to see the 10 states with the highest combined auto premiums for 2012 (the most recent annual data available).
Sunset sky over Towson, Maryland. (Jon Bilous/Shutterstock.com)
Combined average premium in 2012: $1,056.71
Hartford, Conn. (Sean Pavone/Shutterstock.com)
Average premium: $1,082.05
Wilmington, Del. (Jon Bilous/Shutterstock.com)
Average premium: $1,153.59
Detroit, Mich. (doma/Shutterstock.com)
Average premium: $1,171.94
Providence, R.I. (Sean Pavone/Shutterstock.com)
6. Rhode Island
Average premium: $1,176.01
Orlando, Fla. (Thomas Barrat/Shutterstock.com)
Average premium: $1,196.02
New York City. (Luciano Mortula/Shutterstock.com)
4. New York
Average premium: $1,273.27
New Orleans, La. (Jorg Hackermann/Shutterstock.com)
Average premium: $1,275.10
Pennsylvania Street in Washington D.C. (Orhan Cam/Shutterstock.com)
2. Washington D.C.
Average premium: $1,289.49
The boardwalk in Ventnor City, N.J. (Jon Bilous/Shutterstock.com)
1. New Jersey
Average premium: $1,334.54
According to NAIC, New Jersey has historically paid two to four times the national average in dividends to policyholders, which would reduce the average expenditure and combined average premium for New Jersey consumers if dividends were included in premium.