Auto Insurance rates rising in Arizona

Associated Press



PHOENIX - Auto insurance rates went up an average 16.6 percent over a five-year period in Arizona and remain higher than the national average.

Severe collisions occur here more often and the theft-rate is more than double the national average, contributing to higher rates.



The average six-month Arizona auto premium was $920.38, the 13th-highest cost in the United States in 2003 according to the National Association of Insurance Commissioners. From 1999 to 2003, the latest year available, premiums climbed 19.9 percent nationally, according to the commission.



Efforts to cut red-light running, speeding and drunken driving are helping.



"We're doing some things right," said James Frederikson, executive director of the Arizona Insurance Information Association. "No. 1, people are doing a better job of driving."



Erin Klug, spokeswoman for the Arizona Department of Insurance, said the state's ranking has hovered between 10th and 15th for years.



Speeding drivers typically cause more severe collisions, driving up the cost of medical payments and repairs. Arizona insurers shell out about $563 more than the national average to cover medical costs during collisions, Frederikson said.



The state also has a higher rate of people claiming to be injured in an accident: about one-fifth higher than nationally.



Comparison shopping can help keep rates down though. About 270 firms are licensed to write policies in Arizona.



State insurance officials report huge gaps between the lowest and highest quotes for hypothetical drivers. Many drivers, however, don't bother to check on new rates.



Manuel Franco saved $300 on his insurance when AAA, which provides his auto insurance, switched to another carrier. If AAA hadn't switched, the Avondale resident said he doubts he would have done so.



"I've been with AAA so long, I'm just spoiled," he said.