New Orleans Insurance

Two studies published recently on the development of automobile insurance rates, show large differences in the cost of coverage across the nation. At first glance, they seem to also show a wide divergence in their conclusions. It turned out that even if they are not exactly compare apples with oranges, it will examine the different criteria for determining what is done automatically insurance costs.

For example, the latest analysis of Rochester, Wis. consulting firms Runzheimer International, shows that the lowest annual premium of $ 978, one finds in Nashville, Tenn..

However, a recent report by the Insurance Information Institute (III) indicates that the average cost for auto insurance for 2004 the USA is $ 871, $ 29 more than the previous year, the average $ 17 and lowest Runzheimer lowest as annual premium.

The difference is that Runzheimer’s based on the study Premium rates for male and female drivers on a minimum age of proper conduct and records include comprehensive coverage, collisions, injuries, property damage and uninsured drivers coverage, and III focuses on the analysis Actual that people pay for insurance across the country. And they pay what is not necessarily the width of the scope of Runzheimer on the basis of their study.

“I’m looking, what people really buy”, III, chief economist, Robert Hartwig said. His characters do not reflect the average premium, given that the average unit responsibility and heritage through different parts.

“Many people do not buy everything,” said Hartwig. He noted that in regions of the country, which are distinguished by their high cost of automobile insurance, as Detroit, many people, if not It is the most buy less coverage is available.

According to Runzheimer, Detroit was the most expensive city in the USA for auto insurance during the last year. The average premium for All-inclusive coverage was $ 4945 per year for a mid-sized sedan within a derivative of 50 miles radius of the city.

The good news is that the smallest country with the rate increases during the year 2004, when he saw during recent years has III. The cost of auto insurance is an increase of 3.5 per cent in 2004, the smallest increase in four years.

Prices in Germany rose an average 7.8 per cent in 2003 compared to 8.8 percent in 2002. The trend of smaller size is increased activated by a decrease in the number of car accidents, and crackdowns on fraud and abuse. However, rising costs of medical care, auto repair massive jury awards and continue to cause problems.

“A reduction in car accidents, in conjunction with an improved financial performance of insurers, are contributing to a sharp moderation of the costs of automobile insurance in 2004,” said Hartwig. “Some riders are still see para decreases Especially those with the best records of conduct. ”

Still, motorists in some countries, such as Florida, Massachusetts and New York can expect at costs too high due to remain higher automobile theft and fraud, the III

Runzheimer, the study also shows that conditions of detention in different parts of the country to influence how much consumers actually pay.

“There is really no secret here,” said David Freidlen, Runzheimer director of product development and vehicle cost expert. “Insurance Company based on the rate of claims records. Fewer accidents, thefts of vehicles and rules on conflict of bills to repair damage to Nashville against Detroit to a significant decline in annual insurance premiums .

Although fewer claims, those that cost more cases, “said Hartwig.” It costs more to repair cars, especially after accidents Sport Utility Vehicles. ”

The increased costs of hospitalization and medication, the state provisions that permit abuse of medical treatments and associated legal costs are lower than the fight against the rate of accidents, Hartwig added. He felt insurer pays between $ 15 billion and 20 billion dollars in rights to health care in 2004.

Besides the medical costs and higher repair bills higher jury awards in liability cases Motorsport further increase pressure on auto insurance rates.

“For liability issues are much more important than people realize,” Hartwig noted. “Over 60 percent of premium automobiles in 2003, more than $ 80 billion have been designed to cover the liability. Given that we take a look in 2004 and 2005, we see this trend.”

Car theft is another important factor that price. Preliminary data from the Federal Bureau of Investigation-Uniform Crime Report shows the number of car thefts rose by 0.9 per cent during the first half of 2003, the last period for which data are available. The result is an increase of 1.4 per cent in auto theft in 2002, 5.9 per cent in 2001 and 0.7 per cent in 2000. It is estimated that 1.25 million car theft have been during the year 2002.

The west and south experienced the highest number of thefts in the nation, with rates lowest in the Middle East and north-west. The main increases were stolen car in medium cities and suburbs.