InsWeb: Auto Rates Up 11% In 2002

InsWeb: Auto Rates Up 11% In 2002

NU Online News Service, March 7, 2:20 p.m. EST?An online auto insurance quoting service has found that personal lines automobile insurance rates are up significantly.

Sacramento, Calif.-based InsWeb Corp.'s Auto Insurance Index, which tracks general pricing trends in personal auto insurance, found premiums nationwide in 2002 increased on average by 11 percent over the prior year.

The average price quoted for a six-month auto insurance policy on InsWeb's marketplace during 2002 was $1,350, compared to $1,200 during 2001. Based on this data, consumers could be paying as much as $150 more for six-month policies when compared to 2001, InsWeb said in a statement.

"The cost of auto insurance based on a six-month policy in 2002 accounted for approximately 6 percent of the average household's income, a full percent increase over the prior year," noted InsWeb's chairman, Hussein Enan.

For the fourth quarter of 2002, rates for auto insurance appeared to stabilize, exhibiting a pattern similar to the previous two quarters, according the index's findings.