Auto Insurance Premiums Rising Slowly

Connecticut has the 11th highest auto insurance in the country, but, like other countries, have benefited in recent years, with a slight decline of the average policy costs, according to a new report from the National Association of Insurance Commissioners.

That trend begins to reverse, but so far have been relatively modest increases in average, experts say.

The average premium per vehicle for policy, which includes liability, collision and comprehensive coverage, was $ 1,080 in the state of Connecticut in 2006, the latest data in the report, the association released Wednesday. That compares with $ 1,097 in 2005.

Association warns against comparing the contributions to the state because of differences in insurance laws and requirements, rates of accidents and the cost of repairs. Comparisons, but are often cited in public discussions on reform of auto insurance, and the opportunity to serve as a barometer of the premium pain.

The national average premium for 937 dollars in 2006. Washington, DC, topped the list at 1,316 dollars, and came in Iowa at the cheapest 644 dollars.

Connecticut Insurance Commissioner Thomas R. Sullivan noted that the report shows, Connecticut had an average 1.5 percent decline in premiums in 2006. From 2002 to 2006, premiums rose 1.6 percent, but here in the country of 4.5 percent.

"The number of companies in our auto insurance market continues to grow, and Connecticut residents continue to reap the benefits of competition," said Sullivan.

However, auto insurance premiums started rising again, as work to protect insurers' profit margins.

Although the frequency of accidents has fallen, insurers have seen an average increase in the cost of claims, together with an increase in treatment costs and prices of materials such as steel, aluminum and plastic parts needed to repair the car, said Robert P. Hartwig, president and economist at the Insurance Information Institute.

Insurance costs were flat or slightly down in 2006, and almost flat in 2007. "What we have seen, as we have in 2008 was moved by some signs of increased prices for auto insurance, but not so drastically," Hartwig said. Nationwide, motor vehicle insurance costs were 3.1 percent higher in September than a year ago, according to the consumer price index data from the U.S. Department of Labor.

The average growth rate of Connecticut, on the basis of the 34 companies that filed an application for a change, is 2.5 percent so far this year, the state Department of Insurance says. The average for 2007, 1.48 percent, on the basis of the rate of 43 entries. Not all consumers are affected, though, because many companies do not change the rate every year, or may lower rates, while others are raising them.