Ohio’s car and auto insurance rates continued to be some of the lowest in the country in 2015, according to an annual report from the Ohio Department of Insurance.
In Ohio, 75 percent of insurance policy holders have insurance with one of the nation’s top 10 insurance companies.
“We are committed to efficient regulation and fostering market competition to benefit consumers,” Ohio Lieutenant Governor and Director of the ODI Mary Taylor said in a press release. “We also take pride in empowering consumers to become more informed about insurance.”
In Ohio, auto rates have risen only 2.3 percent over a four-year period, according to a press release from the ODI.
Nationwide, insurance costs increased significantly in 2015, but Ohio received less all-around rate increases. Ohio is ranked as the ninth lowest in homeowner premiums in the nation.
“States (like Ohio) where insurance regulators provide insurers more flexibility in the marketplace to introduce new products and establish premiums based on risk parameters, will likely have more carriers which equates to more options for consumers,” Mary Bonelli, senior vice president of public information for the Ohio Insurance Institute said. “When you have more insurance carriers, they can better serve the needs of consumers and businesses alike.”
Though it had a slight increase, Ohio is one of the lucky few states that weren’t hit with premium increases as severe as those experienced in New York, California and Florida. With the rise of technology, distracted driving has aided to the rise in premium costs, especially among young drivers.
Another cause of these premium increases comes from the price of automobiles and the price to repair automobiles. As the price of the cars themselves increase, so do the insurance rates. According to the National Automobile Dealers Association, the average retail price of a vehicle was $33,189 during the first quarter of 2015, which represents a 3 percent increase from the first quarter of 2014.
House premiums increase for similar reasons. The cost to replace a house goes up every year, and Ohio’s median home price had a 3.8 percent increase over the past year. Ohio’s low increases are also due to the significant competition in Ohio, which has over 600 insurance providers licensed to sell in the state. Both Liberty Mutual and Nationwide Insurance companies are headquartered in Ohio.
The low rates are consistent within the state of Ohio, and Bonelli does not foresee them changing anytime soon.
“It’s hard to predict what the future holds long-term, but historically Ohio’s auto and homeowners insurance premiums have been some of the most affordable in the country,” Bonelli said.