Auto Insurance Rates

Auto insurance rates in Ohio aren't falling like North Carolina rates are, but Ohio auto insurance rates are still pretty darn affordable.

A pricing report from insurance.com shows annual auto insurance premiums nationwide have declined 1 percent on average since 2006. Rates decreased in 41 of the 48 surveyed states.

The average national premium in 2007 is $1,896, down from $1,916 in 2006.

Ohio's average premium again ranked as the second-lowest in the nation at $1,342 a year, down 1 percent from $1,358. The only state with lower rates is Wisconsin, whose premiums dropped 1 percent to $1,335.

The states with the highest car insurance premiums are: Louisiana, $2,740; New York, $2,601; and New Jersey, $2,568.

While the decrease in average Ohio premiums is in line with the nationwide trend, North Carolina saw a 16 percent drop from 2006. Rates there are at $1,945, down from $2,261.

The Insurance.com report drew data from the lowest average car insurance rates in the first half of 2007 from about a dozen leading carriers. About 700,000 car insurance consumers participated in the survey.

North Carolina Auto Insurance

Bills advanced today that call for North Carolina auto insurance companies to disclose that policy holders are paying a surcharge to subsidize auto insurance coverage for NC drivers that are determined to be too risky to insure.

The bills, which are backed by the auto insurers, moved to the full House and Senate for consideration after winning committee approvals Tuesday morning.

North Carolina has the largest number of drivers in the reinsurance pool in the United States. When premiums paid by those drivers are insufficient to cover claims, a surcharge is added to everyone’s bill.

Last year premiums fell $249 million short of claims, triggering a surcharge of about 9.8 percent to auto liability premiums, or about $39 on average.

About 30 percent of the state’s driver’s are in the high-risk pool, versus an average of 1.9 percent in other states.