Auto Insurance Price Trend Stable, InsWeb Finds

Auto Insurance Price Trend Stable, InsWeb Finds

NU Online News Service, Dec. 15, 1:36 p.m. EST?Auto insurance pricing might be stabilizing, according to data reported today by the online insurance quote service, InsWeb Corp., based in Sacramento, Calif.[@@]

The company said that based on its Auto Insurance Index, using third-quarter 2003 figures, consumers at InsWeb and across the auto insurance industry in general may begin to see their premiums decrease in the coming months.

InsWeb noted that auto insurance premiums have increased more than 50 percent since InsWeb began tracking data in the first quarter of 2000. However, InsWeb found its Auto Index has only increased from 1.39 to 1.52, or 10 percent, since the beginning of 2002 and has shown a decrease in three out of the past seven quarters, "suggesting possible price stabilization.'

InsWeb said that although its index may be slightly volatile from quarter to quarter, reflecting in part pricing activity by carriers participating on InsWeb's site, as well as profile shifts in consumers shopping at InsWeb, it has been consistent with many independent measures of pricing activity since its inception.

"Our data, combined with several external measures, indicates that consumers may be able to take advantage of opportunities presented by carriers with aggressive pricing strategies. The end of the year presents a good opportunity for consumers to evaluate their options and possibly save hundreds of dollars on comparable insurance policies," said Hussein Enan, chairman of InsWeb.

InsWeb said its index is calculated from quotes viewed at InsWeb by consumers in all states (except those in New Jersey and Massachusetts) for both six-month policies and 12-month policies (it is a weighted average of the separate indices for six-month and 12-month policies, respectively). In each of the 15 quarters analyzed to date, the index has been based on at least 500,000 quotes, with more than 1.5 million quotes analyzed in each of the quarters in 2003.

InsWeb said while the index itself will be calculated on a quarterly basis, the intention is to track and monitor pricing on an annual basis, with quarterly data providing potential early insight into pricing trends, subject to short-term geographic and demographic changes by both carriers and consumers at InsWeb. It is also subject to changes that may result from changes made by InsWeb to its site.

The information will also be posted on InsWeb's Web site at www.insweb.com/about/auto-index.htm.

InsWeb enables consumers to compare multiple, actionable quotes from insurers for auto, term life, health, homeowners, renters and condominium insurance offerings. The online insurance marketplace also provides live customer service, interactive tools and independent research. InsWeb is accessible at www.insweb.com.