Top 5 States for Auto, Home Insurance Rate Hikes in 2013: Perr&Knight

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Personal auto insurance companies increased their rates by an average of 2.5 percent countrywide in 2013, while home insurers increased their rates by an average of 5.1 percent, according to figures compiled from Perr&Knight’s RateWatch.

In addition, renters insurance rates were up 2.6 percent and condominium insurance rates rose 2.9 percent. Annual average rate increases have varied between 5 percent and 7 percent for homeowners insurance, 2 percent to 4 percent for renters insurance and 2.5 percent to 6 percent for condominium insurance over the last five years, according to Perr&Knight.

The report found that the five states with the highest overall increases in 2013 for homeowners insurance were Oklahoma at 12.1 percent, Florida at 11.0 percent, Kentucky at 10.9 percent, Kansas at 10.3 percent and North Carolina at 10.1 percent. The only state experiencing a double digit increase in renters or condominium rates was North Carolina where rates increased 18.7 percent for each. Two states, California and Hawaii, experienced overall decreases in homeowner insurance rates in 2013 of -3.4 percent and -0.7 percent, respectively. Insurers in California also decreased their overall renters rates by -1.8 percent and condominium rates by -1.4 percent in 2013.

The 2013 auto insurance increase is in line with a five year trend of annual average rate increases between 2 percent and 4 percent, and was lower than the 2012 countrywide rate increase of 3.7 percent, the consulting firm said.

The five states with the highest overall auto insurance increases in 2013 were Michigan at 8.6 percent, Georgia at 5.2 percent, New York and Delaware at 4.3 percent, and Nevada at 4.1 percent. No states experienced an overall reduction in rates between 2012 and 2013; however, 2013 rates in North Dakota remained at 2012 levels overall, according to the analysis.

Perr&Knight’s RateWatch product extracts data from the public rate filings of companies representing about 80 percent of the personal insurance premiums written, according to Tim Perr, CEO of Perr&Knight.

Perr&Knight, based in Santa Monica, Calif. provides insurance consulting services for insurance companies, including actuarial, data, technology, regulatory compliance, product design and risk services.

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  • March 18, 2014 at 8:38 pm
    JW says:

    No wonder Michigan leads the States with high auto rates given how companies like Frankenmuth Insurance discriminate and use credit scoring to rape the people of Detroit, while all the while taking their board members (with all spouses) to exclusive resorts for week long trips which at the end of the trip the board votes on executive pay and bonuses. This is a huge conflict of interest. Their executives take private jets to Pebble Beach for golfing junkets, and they took some agents to Greece which cost 5 million dollars for one week – 90 people (that’s about 53K per person). Rates have to go up – how else will these poor executives afford themselves?

  • March 18, 2014 at 9:44 pm
    JW says:

    It is no surprise that Michigan has the most soaring auto rates when a company called Frankenmuth Insurance, domiciled in Michigan discriminates against its own policyholder by jacking rates due to credit scores. It’s the only way they can afford to take junkets to pebble beach on private jets, and entertain their board of directors (and spouses) for week long trips to exclusive resorts in Mexico and in Vegas. They also spent 5 million dollars on a one-week long trip to Greece for 90 people which cost on average 53K per person. The premium hikes policyholder are forced to pay is to fund the lifestyles of greedy executives.

  • March 18, 2014 at 9:50 pm
    JW says:

    It is no surprise that Michigan’s auto rates are soaring when a company called Frankenmuth Insurance domiciled in Michigan uses credit scoring against its policyholders to jack rates. The executives need the additional premium dollars to fund their egregiously lavish lifestyles including junkets to pebble beach on private jets, entertaining board members (and spouses) for weeks at a time in exclusive resorts in Cabo and Vegas or taking a cruise to Greece that cost approximately 5 million dollars for 1 week (90 people – spouses included @ about 53K per person). The only reason for these soaring premiums are to fund the lifestyles of the greedy executives.

  • March 19, 2014 at 2:14 pm
    Tom Woodward says:

    Good information, but why would there not be a table with all the states listed and their increases so we would have a snapshot for our own state? Even if I had to go to another site, having a link to do so would have been a good idea.

  • August 20, 2014 at 12:26 pm
    Rose Morries says:

    Auto insurance hike will cause many type of problems to the owners, that will lead to make disturbance to insurance industries. So just focus to other policies that are stable and select the option for your auto vehicle.

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