Zebra’s 2020 report provides a comprehensive analysis of 73 million auto insurance rates from 418 insurance companies in 34,000 U.S. zip codes to examine trends that impact rates at the national, state, and local levels.
“With auto insurance becoming more expensive, it’s important that drivers know what goes into their rates. Yet for most people it is a mystery why some drivers pay. $ 500 per year while others pay $ 5,000, “said Nicole beck, Director of Communications and Licensed Insurance Agent at The Zebra. “The ‘why’ is a mix of factors: the weather in your area, your credit score, the way you drive, and more. But the bottom line is that drivers actually have more control over what they are doing. pay than they think. “
Auto insurance is more expensive than ever
Annual auto insurance premiums are up for 63% of drivers in the United States, with some markets now surpassing $ 6,200 – four times the national average.
Most expensive states:
- Michigan: $ 3,096
- Louisiana: $ 2,379
- Florida: $ 2,309
The most expensive cities:
- Detroit, Michigan: $ 6,280
- Flint, Michigan: $ 3,901
- New Orleans, LA: $ 3,735
Insurance costs rise for some, stagnate for others
Factors such as geography, susceptibility to weather events and the impact of state insurance regulators have dramatic impacts on prices.
- After Texas rates rose sharply for two years following major storms and hurricanes, the state saw a dramatic 20% drop in rates in early 2020.
- Detroit the average annual premium is $ 6,280. Greenville, North Carolina the average annual premium is $ 819: a difference of 667%.
- As of 2011, 44 states and Washington DC saw a price increase, but seven states saw a slight decline. Hawaii saw the biggest drop in premiums, with rates falling 5.5% since 2011.
Insurance is at a technological turning point
Zebra’s research reveals that technology is playing a bigger role in auto insurance pricing – and the trend will continue over the next decade.
- Insurers have started to sharply increase rates for drivers distracted by phones or other devices while driving. Insurance prices jumped 23 $ more per year in 2015 for a distracted driving offense, to $ 185 per year for the same offense in 2016. The premium increase in 2019 is $ 355.
- Accident prevention technology has made cars safer, and more expensive to repair after an accident. As a result, drivers see little discount for having these features in their vehicle.
To see the State of Auto Insurance Report 2020 to explore how gender, credit score, age, popular cars, teenage drivers, and all rating factors affect insurance costs by state and zip code.
In addition, B-Roll assets can be downloaded here and used with credit to The Zebra or TheZebra.com.
About the zebra
The Zebra is the nation’s leading independent insurance comparison site. With its dynamic real-time quote comparison tool, drivers can identify insurance companies with the coverage, level of service, and pricing tailored to their unique needs. The Zebra compares over 100 auto insurance companies and provides agent support and educational resources to ensure drivers are equipped to make the most informed decisions about their auto insurance. Based at Austin, Texas, The Zebra has sought to bring transparency and simplicity to insurance purchases since 2012 – it is “insurance in black and white”.
SOURCE The Zebra